Document:

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                           COMPANIES (JERSEY) LAW 1991

                                 Incorporating:-
                     Companies (Amendment) (Jersey) Law 1992
                  Companies (Amendment No 2) (Jersey) Law 1995
                  Companies (Amendment No 3) (Jersey) Law 1997
                Limited Liability Partnerships (Jersey) Law 1997
                  Companies (Amendment No 4) (Jersey) Law 1998
                 Financial Services Commission (Jersey) Law 1998
               Financial Services (Jersey) Law 1998 (formerly the
                     Investment Business (Jersey) Law 1998)
                  Companies (Amendment No 5) (Jersey) Law 1999
                Financial Services (Extension) (Jersey) Law 2000
                                R&O's 8326, 8941

                             ARRANGEMENT OF ARTICLES

                                     PART I

                                   PRELIMINARY

<TABLE>
<S>    <C>
1.     Interpretation.
2.     Meaning of "holding company", "subsidiary" and "wholly owned subsidiary".

                                     PART II

                       COMPANY FORMATION AND REGISTRATION

3.     Method of formation.
4.     Memorandum of association.
5.     Articles of association.
[5A.   Companies of limited duration.]
[5B.   Limited life company.]
6.     Standard Table.
7.     Documents to be delivered to registrar.
8.     Registration.
9.     Effect of registration.
10.    Effect of memorandum and articles.
11.    Alteration of memorandum and articles.
12.    Copies of memorandum and articles for members.

                                    PART III

                                      NAMES
13.    Requirements as to names.
14.    Change of name.
15.    Power to require change of name.

                                     PART IV

                               TYPES OF COMPANIES

16.    Public companies and private companies.
17.    Consequences of certain actions of private company.

                                     PART V

                       CORPORATE CAPACITY AND TRANSACTIONS

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18.    Capacity of company.
19.    No implied notice of public records.
20.    Form of contracts.
21.    Transactions entered into prior to corporate existence.
22.    Company seals.
23.    Official seal for use abroad.
24.    Official seal for share certificates etc.

                                     PART VI

                              MEMBERSHIP AND SHARES

25.    Definition of "member".
26.    Membership of holding company.
27.    Minimum membership for carrying on business.
28.    Prohibition of minors and interdicts.

                                    PART VII

                                  PROSPECTUSES

29.    Prospectuses.
30.    Compensation for misleading statements in prospectus.
31.    Exemption from liability to pay compensation.
32.    Recovery of compensation.
33.    Criminal liability for untrue statements.

                                    PART VIII

                                  SHARE CAPITAL

34.    Nature and numbering of shares.
35.    Commissions and discounts barred.
36.    Commissions.
37.    Provision for different amounts to be paid on shares.
38.    Alteration of share capital.
39.    Application of share premiums.
40.    Power to issue fractions of shares.

                                     PART IX

                      REGISTER OF MEMBERS AND CERTIFICATES

41.    Register of members.
42.    Transfer and registration.
43.    Certification of transfers.
44.    Location of register of members.
45.    Inspection of register.
46.    Declaration.
47.    Rectification of share register.
48.    Trusts not to be entered on register.
49.    Branch registers.
50.    Share certificates.
51.    Certificate to be evidence of title.

                                     PART X

                                  CLASS RIGHTS

                                        2

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52.    Variation of class rights.
53.    Shareholders' right to object to variation.
54.    Registration of particulars of special rights.

                                     PART XI

                        REDEMPTION AND PURCHASE OF SHARES

55.    Power to issue redeemable shares.
56.    Financial requirements on redemption.
57.    Power of company to purchase own shares.
58.    Financial assistance by company for purchase of own shares.
59.    Power for States to extend or modify Articles 55 to 58.

                                    PART XII

                              REDUCTION OF CAPITAL

60.    Forfeiture of shares.
61.    Special resolution for reduction of share capital.
62.    Application to court for order of confirmation.
63.    Court order confirming reduction.
64.    Registration of Act and minute of reduction.
65.    Liability of members on reduced shares.
66.    Penalty for concealing name of creditor, etc.

                                    PART XIII

                                 ADMINISTRATION

67.    Registered office.
68.    Company's name to be displayed outside registered office.
69.    Company's name to appear in its correspondence, etc.
70.    Particulars in correspondence, etc.
71.    Annual return.
72.    Service of documents.

                                    PART XIV

                             DIRECTORS AND SECRETARY

73.    Directors.
74.    Duties of directors.
75.    Duty of directors to disclose interests.
76.    Consequences of failure to comply with Article 75.
77.    Indemnity of officers and former officers.
78.    Disqualification orders.
79.    Personal responsibility for liabilities where person acts while
       disqualified.
80.    Validity of acts of directors.
81.    Secretary.
82.    Qualifications of secretary.
83.    Register of directors and secretaries.
84.    Particulars of directors.
85.    Particulars of secretaries.

                                     PART XV

                                    MEETINGS

86.    Participation in meetings.

                                        3

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87.    Annual general meeting.
88.    Committee's power to call meeting in default.
89.    Requisition of meetings.
90.    Definition of special resolution.
91.    Notice of meetings.
92.    General provisions as to meetings and votes.
93.    Representation of body corporate at meetings.
94.    Power of court to order meetings.
95.    Resolutions in writing.
96.    Proxies.
97.    Demand for poll.
98.    Minutes.
99.    Inspection of minute books.
100.   Filing of resolutions.
101.   Resolution passed at adjourned meeting.

                                    PART XVI

                               ACCOUNTS AND AUDIT

102.   Accounting records.
103.   Retention of records.
104.   Accounts.
105.   Copies of accounts.
106.   Delivery of accounts to registrar.
107.   Failure to comply with Articles 102 to 104 or 106.
108.   Power to make Regulations as to accounts.
109.   Appointment and removal of auditors.
110.   Auditors' report.
111.   Auditors' duties and powers.
112.   False statements to auditors.
113.   Qualifications for appointment as auditor.

                                    PART XVII

                                  DISTRIBUTIONS

114.   Restrictions on distributions.
115.   Consequences of unlawful distribution.

                                   PART XVIII

                         AMALGAMATIONS AND ARRANGEMENTS

116.   Takeover offers.
117.   Right of offeror to buy out minority shareholders
118.   Effect of notice under Article 117.
119.   Right of minority shareholder to be bought out by offeror.
120.   Effect of requirements under Article 119.
121.   applications to the court,
122.   Joint offers.
123.   Associates.
124.   Convertible securities.
125.   Power of company to compromise with creditors and members.
126.   Information as to compromise to be circulated.
127.   Provisions for facilitating company reconstruction and amalgamation.

                                    PART XIX

                                 INVESTIGATIONS

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128.   Appointment of inspectors by Committee.
129.   Powers of inspectors.
130.   Production of records and evidence to inspectors.
131.   Power of inspectors to call for directors' bank accounts.
132.   Authority for search.
133.   Obstruction.
134.   Failure to co-operate with inspectors.
135.   Inspectors' reports.
136.   Power to bring civil proceedings on behalf of body corporate.
137.   Expenses of investigating company's affairs.
138.   Inspectors' report to be evidence.
139.   Privileged information.
140.   Investigation of external companies.

                                     PART XX

                                UNFAIR PREJUDICE

141.   Power for member to apply to court.
142.   Power for Committee to apply to court.
143.   Powers of court.

                                    PART XXI

                             WINDING UP OF COMPANIES

            CHAPTER 1 - WINDING UP [OF COMPANIES OF LIMITED DURATION]

144.   Procedure [- winding up of limited life companies.]
[144A. Procedure - winding up of other companies of limited duration.]

                         CHAPTER 2 - SUMMARY WINDING UP

145.   Application of this Chapter.
146.   Procedure.
147.   Commencement of [summary] winding up.
148.   Effect on status of company.
149.   Appointment of liquidator.
150.   Application of assets and dissolution.
151.   Effect of insolvency.
152.   Liability of past directors and others.
153.   Remuneration of liquidator.
154.   Cesser of office by liquidator.
[154A. Termination of summary winding up.]

              CHAPTER 3 - WINDING UP ON JUST AND EQUITABLE GROUNDS

155.   Power for court to wind up.

                        CHAPTER 4 - CREDITORS' WINDING UP

156.   Application of this Chapter.
157.   Procedure.
158.   Notice of winding up.
159.   Commencement and effects of creditors' winding up.
160.   Meeting of creditors in creditors' winding up.
161.   Appointment of liquidator.
162.   Appointment of liquidation committee.
163.   Remuneration of liquidator, cesser of directors' powers and vacancy in office of liquidator.

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164.   No liquidator appointed.
165.   Costs of creditors' winding up.
166.   Application of the law relating to "desastre".
167.   Arrangement when binding on creditors.
168.   Meetings of company and creditors.
169.   Final meeting and dissolution.
170.   Powers and duties of liquidator.
171.   Power to disclaim onerous property.
172.   Powers of court in respect of disclaimed property.
173.   Unenforceability of liens on records.
174.   Reference of questions and powers to the court.
175.   Appointment or removal of liquidator by the court.
176.   Transactions at an undervalue and preferences.
177.   Responsibility of persons for wrongful trading.
178.   Responsibility for fraudulent trading.
179.   Extortionate credit transactions.
180.   Delivery and seizure of property.
181.   Liability in respect of purchase or redemption of shares.
182.   Resolutions passed at adjourned meetings.
183.   Duty to co-operate with liquidator.
184.   Liquidator to report possible criminal offences.
185.   Obligations arising under Article 184.

                  CHAPTER 5 - PROVISIONS OF GENERAL APPLICATION

186.   Distribution of company's property.
187.   Enforcement of liquidator's duties to make returns etc.
188.   Qualifications of liquidator.
189.   Corrupt inducement affecting appointment as liquidator.
190.   Notice by liquidator of appointment, resignation etc.
191.   Notification that company is in liquidation.
192.   Liability as contributories of present and past members.
193.   Bar against other proceedings in bankruptcy.
194.   Disposal of records.

                                    PART XXII

                               EXTERNAL COMPANIES

195.   Power to make Regulations as to registration and regulation of external companies.

                                   PART XXIII

                                    REGISTRAR

196.   Registrar and other officers.
197.   Registrar's seal.
198.   Registered numbers.
199.   Size, durability, etc. of documents delivered to registrar.
200.   Form of documents to be delivered to registrar.
201.   Fees and forms.
[201A. Keeping of records by registrar.]
202.   Inspection and production of documents kept by registrar.
203.   Enforcement of company's duty to make returns.
204.   Destruction of **** records.
205.   Registrar may strike defunct company off register.
[205A. Registrar may strike company off register at end of duration.]

                                    PART XXIV

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                       MISCELLANEOUS AND FINAL PROVISIONS

206.   Form of company's records.
207.   Examination of records and admissibility of evidence.
208.   Production and inspection of records where offence suspected.
209.   Legal professional privilege.
210.   Right to refuse to answer questions.
211.   Relief for private companies.
212.   Power of court to grant relief in certain cases.
213.   Power of court to declare dissolution of company void.
214.   Registration in the Public Registry.
215.   Punishment of offences.
216.   Accessories and abettors.
217.   General powers of the court
[217A. Limitation of Liability.]
218.   Power to make Rules.
219.   Orders.
220.   General provisions as to Regulations and Orders.
221.   Transitional provisions.
222.   Consequential amendments.
223.   Repeal.
224.   Short title and commencement.
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FIRST SCHEDULE                     PUNISHMENT OF OFFENCES.
SECOND SCHEDULE                    TRANSITIONAL PROVISIONS.
THIRD SCHEDULE                     CONSEQUENTIAL AMENDMENTS.

                                        7

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                           COMPANIES (JERSEY) LAW 1991

                                 ______________

A LAW to replace the Companies (Jersey) Laws 1861 to 1968 with new provision for
      the incorporation, regulation and winding up of limited liability
      companies, and for connected purposes, sanctioned by Order of the
      Counsellors of State in Council of the

                            16TH DAY OF OCTOBER 1991

                                 ______________

                  (Registered on the 29th day of November 1991)

                                 ______________

                                STATES OF JERSEY

                                 ______________

                           The 9th day of October 1990

                                 ______________

     THE STATES, subject to the sanction of Her Most Excellent Majesty in
Council, have adopted the following Law -

                                     PART I

                                   PRELIMINARY

                                    ARTICLE I

                                  INTERPRETATION

     (1) In this Law, unless the context otherwise requires -

     "ANNUAL RETURN" means the return to be made by a company under Article 71;

     "ALLOTMENT" in relation to shares, means a transaction by which a person
     acquires the unconditional right to be included in a company's register of
     members in respect of the shares;

     "ARTICLES", in relation to a company, means its articles of association as
     originally framed or as altered;

     ["THE COMMISSION" means the Jersey Financial Services Commission
     established by the Financial Services Commission (Jersey) Law 1998(1);](2)

     "THE COMMITTEE" means the Finance and Economics Committee;

     "COMPANY" means a company registered under this Law, or an existing
     company;

     "CONTRIBUTORY" means a person liable to contribute to the assets of a
     company pursuant to Article 192;

     ["THE COURT" means the Royal Court;](3)

     "CURRENCY" includes foreign currency and any other means of exchange that
     may be

_______________________________

(1) Volume 1998, page 231.
(2)  Definition inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, pages 268 and 269.
(3)  Substituted by Companies (Amendment No.4) (Jersey) Law, 1998 (Volume 1998,
page 499).

                                      8

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     prescribed;(4)

     "THE DESASTRE LAW" means the Bankruptcy (Desastre) (Jersey) Law 1990(5);

     "DIRECTOR" means a person occupying the position of director, by whatever
     name called;

     "DISSOLVED", in relation to a company, means dissolved under this Law or
     any other law of the Island;

     "DISTRIBUTABLE PROFITS" means profits out of which the company may make a
     distribution under Article 114;

     "DOCUMENT" includes summons, notice, statement, return, account, order, and
     other legal process, and registers;

     "EQUITY SHARE CAPITAL", in relation to a company means its issued share
     capital excluding any part of that capital which, neither as respects
     dividends, nor as respects capital, carries a right to participate beyond a
     specified amount in a distribution;

     "EXISTING COMPANY" means a company registered under the Laws repealed by
     Article 223:

     "EXTERNAL COMPANY" means a body corporate which is incorporated outside the
     Island and which carries on business in the Island or which has an address
     in the Island which is used regularly for the purposes of its business;

     "FINANCIAL PERIOD" means a period for which a profit and loss account of a
     company is made up in accordance with this Law;

     "INTERDICT" means a person in respect of whom a curator has been appointed
     in pursuance of Article 50 of the Mental Health (Jersey) Law 1969(6), or a
     corresponding provision of the law of a place outside the Island;

     "LIABILITIES" includes any amount reasonably necessary to be retained for
     the purpose of providing for any liability or loss which is either likely
     to be incurred or certain to be incurred but uncertain as to amount or as
     to the date on which it will arise;

     ["LIMITED LIFE COMPANY" has the meaning assigned to it by Article 5B;](7)

     "MEMORANDUM", in relation to a company, means its memorandum of association
     as originally framed or as altered;

     "NUMBER", in relation to shares, includes amount, where the context admits
     of the reference to shares being construed to include stock;

     "OFFICER", in relation to a body corporate, means a director or liquidator;

     "PAID UP" includes credited as paid up;

     "PERSONAL REPRESENTATIVE" means the, executor or administrator for the time
     being of a deceased person;

     "PRESCRIBED" means prescribed by Order made by the Committee;

     "PRINTED" includes typewritten and a photocopy of a printed or typewritten
     document;

_______________________________

(4)  Note should be had to the Companies (Prescribed Currency) (Jersey) Order
1992, No. 8329.
(5)  Volume 1990-1991, page 39.
(6)  Volume 1968-1969, page 345. Volume 1970-1972, page 549, and R & O 5838.
(7)  Definition inserted by Companies (Amendment No.3) (Jersey) Law, 1997
(Volume 1997, page 683).

                                      9

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     "PRIVATE COMPANY" has the meaning assigned to it by paragraph (3) of
     Article 16;

     "PROSPECTUS" has the meaning assigned to it by sub-paragraph (a) of
     paragraph (4) of Article 29;

     "PUBLIC COMPANY" has the meaning assigned to it by paragraph (1) of
     Article 16;

     "RECORDS" means documents and other records however stored;

     "REGISTRAR" means the registrar of companies appointed pursuant to Article
     196 and "his seal", in relation to the registrar, means a seal prepared
     under Article 197;

     ["SECURITIES"-

     (a)    in Article 51A, has the meaning assigned to it by paragraph (4) of
            that Article; and

     (b)    except as provided in sub-paragraph (a) of this definition, has the
            meaning assigned to it by sub-paragraph (b) of paragraph (4) of
            Article 29.](8)

     "SHARE" means share in the share capital of a body corporate and includes
     stock (except where a distinction between shares and stock is express or
     implied);

     "YEAR" means a calendar year.

     (2)    References in this Law to a body corporate-

     (a)    include a body corporate incorporated outside the Island but do not
            include a corporation sole;

     (b)    except in paragraph (6) of Article 2, do not include an association
            incorporated under the "Loi (1862) sur les teneures en fideicommis
            et l'incorporation d'associations"(9);

     (c)    do not include a Scottish firm.

     [(d)   do not include a limited liability partnership registered under the
            Limited Liability Partnerships (Jersey) Law 1997(10).](11)

     [(2A)  In Articles 5B, 144 and 144A, 'a fixed period of time' means a
period of time that is ascertainable without reference to any event that is -

     (a)    contingent; or

     (b)    otherwise uncertain.](12)

     (3)    A reference in this Law to a Part, Article or Schedule by number
only, and without further identification, is a reference to the Part, Article or
Schedule of that number in this Law.

     (4)    A reference in an Article or other division of this Law to a
paragraph, sub-paragraph or clause by number or letter only and without further
identification, is a reference to the paragraph, sub-paragraph or clause of that
number or letter contained in the Article or other division of this Law in which
that reference occurs.

     (5)    Unless the context otherwise requires, where this Law refers to an
enactment, the

_______________________________

(8)  Definition substituted by Companies (Amendment No. 4) (Jersey) Law, 1998
(Volume 1998, pages 499 and 500).
(9)  Tomes I-III, page 258.
(10) Volume 1996-1997, page 81.
(11) Inserted by the Limited Liability Partnerships (Jersey) Law 1997, Volume
1997, page 552.
(12) Sub-paragraph inserted by Companies (Amendment No. 3) (Jersey) Law, 1997
(Volume 1997, page 684).

                                      10

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reference is to that enactment as amended from time to time, and includes a
reference to that enactment as extended or applied by or under another
enactment, including any other provision of that enactment.

                                   ARTICLE 2

                 MEANING OF "HOLDING COMPANY", "SUBSIDIARY" AND
                          "WHOLLY-OWNED SUBSIDIARY"

     (1)    For the purposes of this Law, a company is, subject to paragraph
(4), deemed to be a subsidiary of another if (but only if)-

     (a)    that other either -

            (i)    is a member of it and controls the composition of its board
                   of directors; or

            (ii)   holds more than half in nominal value of it equity share
                   capital; or

     (b)    the first-mentioned company is a subsidiary of any company which is
            that other's subsidiary.

     (2)    For the purposes of paragraph (1), the composition of a company's
board of directors is deemed to be controlled by another company if (but only
if) that other company by the exercise of some power exercisable by it without
the consent or concurrence of another person can appoint or remove the holders
of all or a majority of the directorships.

     (3)    For the purposes of paragraph (2), the other company is deemed to
have power to appoint to a directorship with respect to which any of the
following conditions is satisfied -

     (a)    that a person cannot be appointed to it without the exercise in his
            favour by the other company of that power;

     (b)    that a person's appointment to the directorship follows necessarily
            from his appointment as director of the other company; or

     (c)    that the directorship is held by the other company itself or by a
            subsidiary of it.

     (4)    In determining whether one company is a subsidiary of another -

     (a)    any shares held or power exercisable by the other in a fiduciary
            capacity are to be treated as not held or exercisable by it;

     (b)    subject to sub-paragraph (c), any shares held or power exercisable -

            (i)    by any person as nominee for the other (except where the
                   other is concerned only in a fiduciary capacity); or

            (ii)   by, or by a nominee for, a subsidiary of the other (not
                   being a subsidiary which is concerned only in a fiduciary
                   capacity),

            are to be treated as held or exercisable by the other;

     (c)    any shares held or power exercisable by, or by a nominee for, the
            other or its subsidiary are to be treated as not held or
            exercisable by the other if the shares are held or the power is
            exercisable as above mentioned by way of security only.

     (5)    For the purposes of this law -

     (a)    a company is deemed to be another's holding company if (but only if)
            the other is its subsidiary, and

                                      11

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     (b)    a body corporate is deemed to be the wholly owned subsidiary of
            another if it has no members except that other and that other's
            wholly-owned subsidiaries and its or their nominees.

     (6)    In this Article "company" includes any body corporate.

     (7)    The Committee may by Order modify the provisions of this Article
and, without prejudice to the generality of the foregoing, any such order may
amend the meaning of "holding company", "subsidiary" or "wholly-owned
subsidiary" for the purposes of all or any of the provisions of this Law.

                                     PART II

                       COMPANY FORMATION AND REGISTRATION

                                    ARTICLE 3

                               METHOD OF FORMATION

     Any two or more persons (none of whom is a minor or an interdict)
associated for a lawful purpose may, by signing and delivering to the registrar
a memorandum of association, apply for the formation of an incorporated company
with limited liability.

                                    ARTICLE 4

                            MEMORANDUM OF ASSOCIATION

     (1)    A memorandum delivered to the registrar under Article 3 shall be in
the English or the French language, shall be printed and shall state -

     (a)    the name of the company;

     (b)    the amount of share capital with which the company proposes to be
            registered and the division thereof into shares of a fixed amount,
            which may be expressed in any currency or currencies;

     (c)    that the liability of the members of the company is to be limited;

                    *     *     *     *     *     *     *(13)

     (e)    where the company is a public company, that it is such a company;

     (f)    the full names and addresses of the subscribers who are natural
            persons and the corporate names and the addresses of the registered
            or principal offices of the subscribers which are bodies corporate.

     (2)    No subscriber to the memorandum may take less than one share and
there shall be shown on the memorandum against the name of each subscriber the
number of shares he takes.

     (3)    The memorandum shall be signed by or on behalf of each subscriber in
the presence of at least one witness who shall attest the signature and insert
his name and address.

                                    ARTICLE 5

                             ARTICLES OF ASSOCIATION

     (1)    If the Standard Table has not been prescribed under Article 6, there
shall be

_______________________________

(13) Sub-paragraph deleted by Companies (Amendment No. 3) (Jersey) Law, 1997
(Volume 1997, page 351).

                                       12

<PAGE>

delivered to the registrar with the memorandum, articles specifying regulations
for the company and, if the Standard Table has been prescribed, articles may be
so delivered.

     (2)    Articles shall be in the English or the French language and shall-

     (a)    be printed;

     (b)    be divided into paragraphs numbered consecutively; and

     (c)    be signed by or on behalf of each subscriber of the memorandum in
            the presence of at least one witness who shall attest the signature
            and insert his name and address.

                                   [ARTICLE 5A

                          COMPANIES OF LIMITED DURATION

     Where a company is to be wound up and dissolved upon -

     (a)    the expiration of the period of time; or

     (b)    the happening of some other event,

that period or event shall be specified in the memorandum or the articles of the
company.

                                   ARTICLE 5B

                              LIMITED LIFE COMPANY

     (1)    A company whose memorandum includes or whose articles include a
provision that the company shall be wound up and dissolved upon -

     (a)    the bankruptcy, death, expulsion, insanity, resignation or
            retirement of any member of the company; or

     (b)    the happening of some other event that is not the expiration of a
            fixed period of time,

is a limited life company.

     (2)    A limited life company may include in its memorandum or articles a
provision for its winding up and dissolution on the expiration of a fixed period
of time.]

                                  ARTICLE 6(14)

                                 STANDARD TABLE

     (1)    The Committee may prescribe a set of model articles to be known as
the Standard Table; and thereafter a company may for its articles adopt the
whole or any part of that Table.

     (2)    In the case of a company registered after the Standard Table has
been prescribed, if articles are not registered or, if articles are registered,
insofar as they do not exclude or modify the Standard Table, that Table (so far
as applicable, and as in force at the date of the company's registration)
constitutes the company's articles as if articles in the form of that Table had
been duly registered.

     (3)    If, in consequence of an Order under this Article, the Standard
Table is altered, the alteration does not affect a company registered before the
alteration takes effect, or repeal as respects that company any portion of the
Table.

_______________________________

(14) The Standard Table is set out in the Companies (Standard Table) (Jersey)
Order 1992, No. 8323.

                                       13

<PAGE>

                                  ARTICLE 7(15)

                     DOCUMENTS TO BE DELIVERED TO REGISTRAR

     (1)    With the memorandum there shall be delivered to the registrar a
statement containing the intended address of the company's registered office on
incorporation and any other prescribed particulars; and the statement shall be
signed by or on behalf of the subscribers of the memorandum.

     (2)    Where a memorandum is delivered by a person as agent for the
subscribers, the statement shall specify that fact and the person's name and
address.

                                    ARTICLE 8

                                  REGISTRATION

     (1)    The registrar may, in his discretion, refer an application for the
formation of a company to the court.

     (2)    If an application for the formation of a company is referred to the
court or if the court calls for an application to be referred to it, it may
authorize or, if it considers that the formation of a company is not in the
public interest, refuse to authorize, the registration of the memorandum.

     (3)    If the registrar is satisfied that all the requirements of this Law
in respect of the registration of a company have been complied with and (where
the application for the formation of the company has been referred to the court)
he has received an Act of the court authorizing the registration, he shall
register the company's memorandum and articles (if any) delivered to him under
Article 5.

                                    ARTICLE 9

                             EFFECT OF REGISTRATION

     (1)    On the registration of a company's memorandum the registrar shall
give a certificate that the company is incorporated.

     (2)    The certificate shall be signed by the registrar and sealed with his
seal.

     (3)    From the date of incorporation mentioned in the certificate the
subscribers of the memorandum, together with such other persons who may from
time to time become members of the company, shall be a body corporate having the
name contained in the memorandum capable forthwith of exercising all the
functions of an incorporated company, but with such liability on the part of its
members to contribute to its assets as is provided by this Law or any other
enactment in the event of its being wound up.

     (4)    If the memorandum states that the company is a public company, the
certificate shall so state.

     (5)    A certificate of incorporation is conclusive evidence of the
incorporation of the company and, if the certificate states that the company is
a public company, that the company is a public company.

_______________________________

(15) Note should be had to the Companies (General Provisions) (Jersey) Order
1992, No. 8324), the Companies (General Provisions)(Amendment) (Jersey) Order
1992, No. 8390, the Companies (General Provisions) (Amendment No. 2) (Jersey)
Order 1995, No. 8782, the Companies (General Provisions) (Amendment No. 3)
(Jersey) Order 1995, No. 8868 and the Companies (General Provisions) (Amendment
No.4) (Jersey) Order 1998. No. 9262.

                                      14

<PAGE>

                                   ARTICLE 10

                       EFFECT OF MEMORANDUM AND ARTICLES

     (1)    Subject to the provisions of this Law, the memorandum and articles,
when registered, bind the company and its members to the same extent as if they
respectively had been signed and sealed by the company and by each member, and
contained covenants on the part of the company and each member to observe all
the provisions of the memorandum and articles.

     (2)    Money payable by a member to the company under the memorandum or
articles is a debt due from him to the company.

                                   ARTICLE 11

                     ALTERATION OF MEMORANDUM AND ARTICLES

     (1)    Subject to the provisions of this Law, a company may by special
resolution alter its memorandum or articles.

     (2)    An alteration in the memorandum or articles of a company -

     (a)    may provide that upon -

            (i)    the expiration of a period of time; or

            (ii)   the happening of some other event,

            the company is to be wound up or dissolved; or

     (b)    may amend or delete any such provision.

     (3)    Notwithstanding anything in the memorandum or articles, a member of
a company is not bound by an alteration made in the memorandum or articles after
the date on which he became a member, if and so far as the alteration -

     (a)    requires him to take or subscribe for more shares than the number
            held by him at the date on which the alteration is made; or

     (b)    in any way increases his liability as at that date to contribute to
            the company's share capital or otherwise to pay money to the
            company,

unless he agrees in writing, either before or after the alteration is made, to
be bound by it.

     (4)    The power to alter the memorandum or articles conferred by this
Article shall not be exercisable by an existing company -

     (a)    so as to shorten a period of time by which the company's existence
            is limited, or to provide for its winding up and dissolution on the
            happening of an event other than the expiration of a period of time;
            or

     (b)    so as to alter rights attached to a class of shares which cannot be
            altered under the Laws repealed by Article 223,

     unless the alteration is agreed to by all of the members or approved by the
court.](16)

                                   ARTICLE 12

                  COPIES OF MEMORANDUM AND ARTICLES FOR MEMBERS

_______________________________

(16) Substitution by Companies (Amendment No. 3) (Jersey) Law, 1997, (Volume
1997, pages 685 and 686).

                                      15

<PAGE>

     (1)    A company shall, on being so required by a member, send to him a
copy of the memorandum and of the articles subject to payment of such sum (if
any), not exceeding the prescribed maximum, as the company may require.

     (2)    If a company fails to comply with this Article, it is guilty of an
offence.

                                    PART III

                                     NAMES

                                   ARTICLE 13

                            REQUIREMENTS AS TO NAMES

     (1)    The registrar may refuse to register -

     (a)    the memorandum; or

     (b)    a special resolution changing the name of a company.

where the name to be registered is in his opinion in any way misleading or
otherwise undesirable.

     (2)    The name of a company shall end with "Limited" (or the abbreviation
"Ltd") or "avec responsabilite limitee" (or the abbreviation "a.r.1.").

                                   ARTICLE 14

                                 CHANGE OF NAME

     (1)    Subject to Article 13, a company may, by special resolution, change
its name.

     (2)    Where a company changes its name under this Article, the registrar
shall enter the new name on the register in place of the former name, and shall
issue a certificate of incorporation altered to meet the circumstances of the
case; and the change of name has effect from the date on which the altered
certificate is issued.

     (3)    Where, at the time of the passing of the special resolution enabling
a company to change its name, the company has its name inscribed in the Public
Registry as being the holder of, or having an interest in, immovable property in
the Island, the company shall deliver to the Judicial Greffier a copy of the
altered certificate of incorporation within 14 days after it is issued and the
Judicial Greffier shall cause the new name to be registered in the Public
Registry.

     (4)    A company which fails to comply with paragraph (3) is guilty of an
offence.

     (5)    A change of name by a company under this Law does not affect any
rights or obligations of the company or render defective any legal proceedings
by or against it; and any legal proceedings that might have been continued or
commenced against it by its former name may be continued or commenced against it
by its new name.

                                   ARTICLE 15

                        POWER TO REQUIRE CHANGE OF NAME

     (1)    If, in the opinion of the registrar, the name by which a company is
registered is misleading or otherwise undesirable, he may direct the company to
change it.

     (2)    The direction, if not made the subject of an application to the
court under paragraph (3), shall be complied with within three months from the
date of the direction or such longer period as the registrar may allow.

                                      16

<PAGE>

     (3)    The company may within 21 days from the date of the direction apply
to the court to set it aside: and the court may set the direction aside or
confirm it.

     (4)    If the court confirms the direction, it shall specify a period not
being less than 28 days within which it shall be compiled with and may order the
registrar to pay the company such sum (if any) as it thinks fit in respect of
the expense to be incurred by the company in complying with the direction.

     (5)    A company which fails to comply with a direction under this Article
is guilty of an offence.

     (6)    Expenses to be defrayed by the registrar under this Article shall be
paid out of money provided by the States.

                                    PART IV

                               TYPES OF COMPANIES

                                   ARTICLE 16

                     PUBLIC COMPANIES AND PRIVATE COMPANIES

     (1)    A public company is a company the memorandum of which states, or is
deemed to state, that it is a public company.

     (2)    The memorandum of a company which, when Article 17 comes into force,
has more than 30 members shall be deemed to state that it is a public company.

     (3)    A private company is a company which is not a public company.

     (4)    A private company may become a public company by altering its
memorandum.

     (5)    A public company which has fewer than 31 members may become a
private company by altering its memorandum.

     (6)    In determining for the purposes of this Article and Article 17 the
number of members of a company no account shall be taken of directors or persons
who are in the employment of the company and persons who, having been formerly
directors or in the employment of the company, were while directors or in that
employment, and have continued after the determination of that office or
employment to be, members of the company.

     (7)    Where two or more persons hold one or more shares in a company
jointly, they shall, for the purposes of this [Part](17), be treated as a single
member.

     (8)    Where a company changes its status in accordance with paragraph (4)
or (5), the registrar shall, upon delivery to him of a copy of the special
resolution altering the memorandum, issue a certificate of incorporation
appropriate to the altered status.

     (9)    The Committee may by Order amend paragraph (5) of this Article and
sub-paragraph (a) of paragraph (1) of Article 17 to increase the number of
members provided for thereunder.

                                   ARTICLE 17

               CONSEQUENCES OF CERTAIN ACTIONS OF PRIVATE COMPANY

     (1)    A private company shall not

_______________________________

(17) Word substituted by the Companies (Amendment) (Jersey) Law 1992 (Volume
1992-1993, page 63).

                                      17

<PAGE>

     (a)    enter the name of any person in its register of members so as to
            increase the number of its members (excluding the persons referred
            to in paragraph (6) of Article 16) beyond 30; or

     (b)    circulate a prospectus,

and if it does so it shall become subject to this Law as though it were a public
company.

     (2)    If the court, on the application of a company which has acted in
contravention of sub-paragraph (a) of paragraph (1), or of any other person
interested, is satisfied that it is just to relieve the company from all or any
of the consequences of the breach, it may grant relief on such terms as seem to
it expedient.

     (3)    If on the application of a private company or a public company that
is about to become a private company the [Commission](18) is satisfied that by
reason of the nature of the company's activities its affairs may properly be
regarded as the domestic concern of its members, the [Commission] may, in its
discretion, by written notice to the company direct that paragraph (1) shall
apply to the company with such modifications as are specified in the direction
and the [Commission] may at any time withdraw or amend the terms of any such
direction.

     (4)    The company shall within 14 days after the making of an order under
paragraph (2) or the receipt of a direction under paragraph (3) deliver the
relevant Act of the court or a copy of the direction as the case may be, to the
registrar, and if there is failure to comply with this paragraph the company is
guilty of an offence.

     (5)    Where there is a contravention of sub-paragraph (b) of paragraph (1)
then, without derogation from the consequences under that paragraph, the company
and every officer of it who is in default is guilty of an offence.

                                     PART V

                      CORPORATE CAPACITY AND TRANSACTIONS

                                   ARTICLE 18

                              CAPACITY OF COMPANY

     (1)    The doctrine of ultra vires in its application to companies is
abolished and accordingly the capacity of a company is not limited by anything
in its memorandum or articles or by any act of its members.

     (2)    This Article does not affect the capacity of an existing company in
relation to anything done by it before this Article comes into force.

     (3)    Unless and until otherwise resolved by special resolution the
authority of the directors of an existing company shall not include the exercise
of any power which the company did not have when this Article came into force.

                                   ARTICLE 19

                      NO IMPLIED NOTICE OF PUBLIC RECORDS

     No person is deemed to have notice of any records by reason only that they
are made available by the registrar, or by a company, for inspection.

                                   ARTICLE 20

_______________________________

(18) The word "Commission" is substituted by the Financial Services Commission
(Jersey) Law, 1998 (Volume 1998, page 269).

                                      18

<PAGE>

                               FORM OF CONTRACTS

     (1)    A person acting under the express or implied authority of a company
may make, vary or discharge a contract or sign an instrument on behalf of the
company in the same manner as if the contract were made, varied or discharged or
the instrument signed by a natural person.

     (2)    Nothing in this Article shall affect any requirement of law that a
contract be passed before the court.

                                   ARTICLE 21

             TRANSACTIONS ENTERED INTO PRIOR TO CORPORATE EXISTENCE

     (1)    Where a transaction purports to be entered into by a company, or by
a person as agent for a company, at a time when the company has not been formed,
then, unless otherwise agreed by the parties to the transaction, the transaction
has effect as one entered into by the person purporting to act for the company
or as agent for it, and he is personally bound by the transaction and entitled
to its benefits.

     (2)    A company may, within such period as may be specified in the terms
of the transaction or if no period is specified, within a reasonable time after
it is formed, by act or conduct signifying its intention to be bound thereby,
adopt any such transaction and it shall thenceforth be bound by it and entitled
to its benefits and the person who entered into the transaction shall cease to
be so bound and entitled.

                                   ARTICLE 22

                                 COMPANY SEALS

     (1)    Every company shall have a common seal upon which its name is
engraved in legible characters; and if a company fails to comply with this
paragraph it is guilty of an offence.

     (2)    If an officer of a company or a person on its behalf uses or
authorizes the use of any seal purporting to be a seal of the company on which
its name is not engraved as required by paragraph (1), he is guilty of an
offence.

                                   ARTICLE 23

                          OFFICIAL SEAL FOR USE ABROAD

     (1)    A company which engages in business outside the Island may, if
authorized by its articles, have for use in any country, territory or place
outside the Island an official seal, which shall be a facsimile of the common
seal of the company with the addition on its face either of the words "Branch
Seal" or the name of the country, territory or place where it is to be used.

     (2)    A document to which the official seal is duly affixed binds the
company as if it had been sealed with the company's common seal.

     (3)    A company may, in writing under its common seal, authorize an agent
appointed for the purpose to affix the official seal to a document to which the
company is party.

     (4)    As between the company and the person dealing with the agent, the
agent's authority continues until that person has actual notice of the
termination of the authority.

                                   ARTICLE 24

                   OFFICIAL SEAL FOR SHARE CERTIFICATES, ETC.

     A company may have, for use for sealing securities issued by the company
and for sealing documents creating or evidencing securities so issued, an
official seal which is a facsimile of the

                                      19

<PAGE>

company's common seal with the addition on its face of the word "Securities".

                                    PART VI

                             MEMBERSHIP AND SHARES

                                   ARTICLE 25

                             DEFINITION OF "MEMBER"

     (1)    The subscribers of a company's memorandum are deemed to have agreed
to become members of the company, and on its registration shall be entered as
such in its register of members.

     (2)    Every other person who agrees to become a member of a company, and
whose name is entered in its register of members, is a member of the company.

                                   ARTICLE 26

                         MEMBERSHIP OF HOLDING COMPANY

     (1)    Except in the cases mentioned in this Article, a body corporate
cannot be a member of a company which is its holding company; and an allotment
or transfer of shares in a company to its subsidiary is void.

     (2)    Paragraph (1) does not prevent a subsidiary which is, when this
Article comes into force or when it becomes a subsidiary, a member of its
holding company from continuing to be a member, but, subject to paragraph (4),
the subsidiary -

     (a)    has no right to vote at meetings of the holding company or a class
            of its members;

     (b)    shall not acquire further shares in the holding company except on a
            capitalisation issue; and

     (c)    shall within 12 months, or such longer period as the court may
            allow, dispose of all of its shares therein.

     (3)    Paragraphs (1) and (2) apply in relation to a nominee for a body
corporate which is a subsidiary as if references to the body corporate included
a nominee for it.

     (4)    Nothing in this Article applies where the subsidiary is concerned as
personal representative, or where it is concerned as trustee, unless in the
latter case the holding company or a subsidiary of it is beneficially interested
under the trust and is not so interested only by way of security.

                                   ARTICLE 27

                   MINIMUM MEMBERSHIP FOR CARRYING ON BUSINESS

     (1)    If a company carries on business without having at least two members
and does so for more than six consecutive months (whether or not those six
months began before this Article came into force) a person who, for the whole or
any part of the period that it so carries on business after those six months-

     (a)    is a member of the company, and

     (b)    knows that it is carrying on business with only one member,

is liable (jointly and severally with the company) for the payment of the
company's debts contracted during the period or that part of it.

                                      20

<PAGE>

     (2)    Paragraph (1) does not apply to a company of which all of the issued
shares are held by or by a nominee for a holding company.

                                   ARTICLE 28

                      PROHIBITION OF MINORS AND INTERDICTS

     A minor or an interdict may not become a member of a company unless the
shares were transmitted to him on the death of the holder thereof.

                                    PART VII

                                  PROSPECTUSES

                                 ARTICLE 29(19)

                                  PROSPECTUSES

     (1)    The Committee may by Order prohibit both or either of the following,
except in circumstances and subject to conditions specified in the Order -

     (a)    the circulation of a prospectus in the Island;

     (b)    the circulation of a prospectus, in the Island or elsewhere, by a
            company.

     (2)    Such Order may provide for the payment of fees for the purposes of
the Order.

     (3)    Any person who fails to comply with any provision of any such Order
and, where the offence is committed by a body corporate, every officer of the
body corporate which is in default is guilty of an offence.

     (4)    In this Article and in Articles 17, 30, 31 and 33 -

     (a)    "prospectus" means an invitation to the public to acquire or apply
            for any securities; and

     (b)    "securities" means -

            (i)    shares in and debentures of a body corporate, or

            (ii)   interests in any such shares or debentures, or

            (iii)  rights to acquire any of the foregoing.

     (5)    For the purposes of this Article -

     (a)    an invitation is made to the public where it is not addressed
            exclusively to a restricted circle of persons; and

     (b)    an invitation shall not be considered to be addressed to a
            restricted circle of persons unless -

            (i)    the invitation is addressed to an identifiable category of
                   persons to whom it is directly communicated by the inviter or
                   his agent; and

_______________________________

(19) Note should be had to the Companies (General Provisions) (Jersey) Order
1992, No. 8324), the Companies (General Provisions) (Amendment) (Jersey) Order
1992, No. 8390, the Companies (General Provisions) (Amendment No. 2) (Jersey)
Order 1995, No. 8782, the Companies (General Provisions) (Amendment No. 3)
(Jersey) Order 1995. No. 8868 and the Companies (General Provisions) (Amendment
No.4) (Jersey) Order 1998. No. 9262.

                                      21

<PAGE>

            (ii)   the members of that category are the only persons who may
                   accept the offer and they are in possession of sufficient
                   information to be able to make a reasonable evaluation of the
                   invitation; and

            (iii)  the number of person in the Island or elsewhere to whom the
                   invitation is so communicated does not exceed 50.

     (6)    An invitation to the Public to acquire or apply for securities in a
company shall, if the securities are not fully paid or if the invitation is
first circulated within 6 months after the securities were allotted, be deemed
to be a prospectus circulated by the company unless it is shown that the
securities were not allotted with a view to their being the subject of such an
invitation.

                                   ARTICLE 30

              COMPENSATION FOR MISLEADING STATEMENTS IN PROSPECTUS

     (1)    A person who acquires or agrees to security to which a prospectus
relates and suffers a loss in respect of the security as a result of the
inclusion in the prospectus of a statement of a material fact which is untrue or
misleading, or the omission from it of the statement of a material fact, shall,
subject to Article 31, be entitled to compensation -

     (a)    in the case of securities offered for subscription, from the body
            corporate issuing the securities and from each person who was a
            director of it when the prospectus was circulated;

     (b)    in the case of securities offered otherwise than for subscription,
            from the person making the offer and, where that person is a body
            corporate, from each person who was a director of it when the
            prospectus was circulated;

     (c)    from each person who is stated in the prospectus as accepting
            responsibility for the prospectus, or any part of it, but, in that
            case, only in respect of a statement made in or omitted from that
            part; and

     (d)    from each person who has authorized the contents of, or any part of,
            the prospectus.

     (2)    Nothing in this Article shall make a person responsible by reason
only of giving advice as to the contents of a prospectus in a professional
capacity.

     (3)    This Article does not affect any liability which any person may
incur apart from this Article.

     (4)    This Article applies only to a prospectus first circulated after the
Article comes into force.
                                   ARTICLE 31

                  EXEMPTION FROM LIABILITY TO PAY COMPENSATION

A person shall not be liable under Article 30 if he satisfies the court -

     (a)    that the prospectus was circulated without his consent; or

     (b)    that, having made such enquiries (if any) as were reasonable, from
            the circulation of the prospectus until the securities were
            acquired, he reasonably believed that the statement was true and not
            misleading or that the matter omitted was properly omitted; or

     (c)    that, after the circulation of the prospectus and before the
            securities were acquired he, on becoming aware of the untrue or
            misleading statement or of the omission of

                                      22

<PAGE>

            the statement of a material fact, took reasonable steps to secure
            that a correction was brought to the notice of persons likely to
            acquire the securities; or

     (d)    in the case of a loss caused by a statement purporting to be made by
            a person whose qualifications give authority to a statement made by
            him which was included in the prospectus with his consent, that when
            the prospectus was circulated he reasonably believed that the person
            purporting to make the statement was competent to do so and had
            consented to its inclusion in the prospectus; or

     (e)    that the person suffering the loss acquired or agreed to acquire the
            securities knowing that the statement was untrue or misleading or
            that the matter in question was omitted.

                                   ARTICLE 32

                            RECOVERY OF COMPENSATION

     (1)    A person is not debarred from obtaining compensation from a company
by reason only of his holding or having held shares in the company or any right
to apply or subscribe for shares in the company or to be included in the
company's register of members in respect of shares.

     (2)    A sum due from a company to a person who has acquired or agreed to
acquire shares in the company being a sum due as compensation for loss suffered
by him in respect of the shares, shall (whether or not the company is being
wound up and whether the sum is due under Article 30 or otherwise) be treated as
a sum due to him otherwise than in his character of a member.

                                   ARTICLE 33

                 CRIMINAL LIABILITY IN RELATION TO PROSPECTUSES

     If a prospectus is circulated with a material statement in it which is
untrue or misleading or with the omission from it of the statement of a material
fact, any person who authorized the circulation of the prospectus is guilty of
an offence unless he satisfies the court that he reasonably believed, when the
prospectus was circulated, that the statement was true and not misleading or
that the matter omitted was properly omitted.

                                   PART VIII

                                 SHARE CAPITAL

                                   ARTICLE 34

                         NATURE AND NUMBERING OF SHARES

     (1)    The shares or other interests of a member of a company are, subject
to Article 42, transferable in the manner provided by the company's articles.

     (2)    Each share in a company shall be distinguished by its appropriate
number, except that, if and so long as all the issued shares in a company or all
the issued shares in it of a particular class -

     (a)    are fully paid and carry the same rights in all respects; or

     (b)    are evidenced by certificate issued in accordance with Article 50,
            each certificate being distinguished by a number recorded in the
            register of members,

none of those shares need have a distinguishing number.

                                   ARTICLE 35

                                      23

<PAGE>

                        COMMISSIONS AND DISCOUNTS BARRED

     (1)    Except as permitted by Article 36, no company shall issue shares at
a discount or apply its shares or capital money either directly or indirectly in
payment of a commission, discount or allowance to a person in return for his
subscribing or agreeing to subscribe (whether absolutely or conditionally) for
shares in the company, or procuring or agreeing to procure subscriptions
(whether absolute or conditional) for shares in the company.

     (2)    Paragraph (1) applies whether the shares or money be so applied by
being added to the purchase money of property acquired by the company or to the
contract price of work to be executed for the company, or the money be paid out
of the nominal purchase money or contract price, or otherwise.

     (3)    Nothing in this Article or Article 36 shall make unlawful a payment
made or remuneration given by a company to a broker making his usual charges for
services rendered to the company.

     (4)    A vendor to, or promoter of, or other person who receives payment in
money or shares from, a company has, and is deemed always to have had, power to
apply any part of the money or shares so received in payment of a commission,
the payment of which, if made directly by the company, would have been lawful
under this Article and Article 36.

                                   ARTICLE 36

                                  COMMISSIONS

     (1)    A company may pay a commission to a person in consideration of his
subscribing or agreeing to subscribe (whether absolutely or conditionally) for
shares in the company, or procuring or agreeing to procure subscriptions
(whether absolute or conditional) for shares in the company, if the following
conditions are satisfied -

     (a)    the payment of the commission is authorized by the company's
            articles;

     (b)    the commission does not exceed 10 per cent of the price at which the
            shares are allotted or the amount or rate authorized by the
            articles, whichever is less; and

     (c)    in the case of a public company, the amount or rate per cent of
            commission, and the number of shares which persons have agreed for a
            commission to subscribe absolutely are disclosed -

            (i)    where the shares are offered for subscription by a
                   prospectus, in that prospectus, or

            (ii)   where the shares are not offered for subscription by a
                   prospectus, in a statement signed by every director of the
                   company or by his agent authorized in writing and delivered
                   (before payment of the commission) to the registrar.

     (2)    If default is made in complying with sub-paragraph (c) of paragraph
(1) as regards delivery to the registrar of the statement, the company and every
officer of it who is in default is guilty of an offence.

                                   ARTICLE 37

              PROVISION FOR DIFFERENT AMOUNTS TO BE PAID ON SHARES

     A company, if so authorized by its articles may -

     (a)    make arrangements on the allotment of shares for a difference
            between the shareholders in the amounts and times of payments of
            calls on their shares;

                                      24

<PAGE>

     (b)    accept from a member the whole or a part of the amount remaining
            unpaid on shares held by him, although no part of that amount has
            been called up;

     (c)    pay dividends in proportion to the amount paid up on each share
            where a larger amount is paid up on some shares than on others.

                                   ARTICLE 38

                          ALTERATION OF SHARE CAPITAL

     (1)    A company may, by altering its memorandum -

     (a)    increase its share capital by creating new shares of such amount and
            in such currency or currencies as it thinks expedient;

     (b)    consolidate and divide all or any of its shares (whether issued or
            not) into shares of larger amount than its existing shares;

     (c)    convert all or any of its fully paid shares into stock and
            re-convert that stock into fully paid shares of any denomination;

     (d)    subject to paragraph (2), sub-divide its shares, or any of them,
            into shares of smaller amount than is fixed by the memorandum;

     (e)    subject to paragraph(3), convert any of its fully paid shares the
            nominal amount of which is expressed in one currency into fully paid
            shares of a nominal amount of another currency;

     [(ea)  in the case to which paragraph (1 A) refers, denominate the nominal
            amount of its issued or unissued shares in units of the currency
            into which they have been converted;](20)

     (f)    cancel shares which, at the date of the passing of the resolution to
            cancel them, have not been taken or agreed to be taken by any
            person, and diminish the amount of the company's share capital by
            the amount of the shares so cancelled.

     [(1A)  Sub-paragraph (ea) of paragraph (1) refers to the case in which -

     (a)    the nominal amount of the shares concerned is expressed in one
            currency;

     (b)    those shares are then converted (whether under sub-paragraph (e) of
            that paragraph or otherwise) into shares of a nominal amount of
            another currency; and

     (c)    they nevertheless remain denominated in the former currency.](21)

     (2)    In a sub-division under sub-paragraph (d) of paragraph (1) the
proportion between the amount paid and the amount, if any, unpaid on each
reduced share shall be the same as it was in the case of the share from which
the reduced share is derived.

     (3)    A conversion under sub-paragraph (e) of paragraph (1) shall be
effected at the rate of exchange current at a time specified in the resolution
being within 30 days before the conversion takes effect.

     (4)    The powers conferred by this Article shall be exercised by the
company by special resolution.

     (5)    A cancellation of shares under this Article does not for the
purposes of this Law

_______________________________

(20) Sub-paragraph inserted by Companies (Amendment No.5) (Jersey) Law, 1999
(Volume 1999, page 107).
(21) Sub-paragraph inserted by Companies (Amendment No.5) (Jersey) Law, 1999
(Volume 1999, page 108).

                                      25

<PAGE>

constitute a reduction of share capital.

                               ARTICLE 39(22)

                         APPLICATION OF SHARE PREMIUMS

     (1)    If a company allots shares at a premium, whether for cash or
otherwise, a sum equal to the aggregate amount or value of the premiums on those
shares shall, as and when the premiums are paid up, be transferred to an account
called the share premium account.

     (2)    The share premium account may be applied by the company in paying up
unissued shares to be allotted to members as fully paid bonus shares, or in
writing off-

     (a)    the company's preliminary expenses; or

     (b)    the expenses of, or the commission paid or discount allowed on, any
            issue of shares of the company,

or in providing for any premium payable on the redemption or purchase of shares
in accordance with Article 55 or 57.

     (3)    Subject to this Article, the provisions of this Law relating to the
reduction of a company's share capital apply as if the share premium account
were part of its paid up share capital.

     (4)    The Committee may by Order make provision for relieving companies
from the requirements of this Article.

                                   ARTICLE 40

                       POWER TO ISSUE FRACTIONS OF SHARES

     (1)    Notwithstanding sub-paragraph (b) of paragraph (1) of Article 4, a
company, if authorized by its articles, may issue a fraction of a share, but-

     (a)    no fraction of a share shall be issued otherwise than as fully paid;

     (b)    no fraction of a share shall be issued if, as a result, the total
            amount of the issued shares of any class would not be a whole number
            of shares; and

     (c)    if the holder of a fraction of a share acquires a further fraction
            of a share of the same class, the fractions shall be treated as
            consolidated.

     (2)    The rights of a member in respect of the holding of a fraction of a
share shall be as provided in the articles.

     (3)    Subject to this Article, and save as otherwise provided in the
articles of the company, this Law applies to fractions of shares as it applies
to whole shares.

                                    PART IX

                      REGISTER OF MEMBERS AND CERTIFICATES

                                   ARTICLE 41

                              REGISTER OF MEMBERS

     (1)    Every company shall keep a register of its members and enter in it-

_______________________________

(22) Note the application of the Companies (Application of Share Premiums)
(Jersey) Order 1992, No. 8327 and the Companies (Application of Share Premiums)
(Amendment) (Jersey) Order 1994, No. 8716.

                                      26

<PAGE>

     (a)    the names and addresses of its members, together with a statement
            of-

            (i)    the shares held by each member, distinguishing each share by
                   its number (so long as the share has a number) and, where the
                   company has more than one class of issued shares, by its
                   class, and

            (ii)   the amount paid up on the shares of each member;

     (b)    the date on which each person was registered as a member; and

     (c)    the date on which any person ceased to be a member.

     (2)    Where the company has converted any of its shares into stock, the
register shall show the amount and class of stock held by each member instead of
the amount of shares and the particulars relating to shares specified in
sub-paragraph (a) of paragraph (1).

     (3)    If a company fails to comply with this Article, the company and
every officer of it who is in default is guilty of an offence.

     (4)    An entry relating to a former member of the company may be removed
from the register after 10 years from the date on which he ceased to be a
member.

     (5)    Without prejudice to any lesser period of limitation or
prescription, liability incurred by a company from the making or deletion of an
entry in its register of members, or from failure to make or delete any such
entry, is not enforceable more than 10 years after the date on which the entry
was made or deleted or the failure first occurred.

                                   ARTICLE 42

                           TRANSFER AND REGISTRATION

     [(1)   Notwithstanding anything in its articles, a company shall not
register a transfer of shares in the company unless -

     (a)    an instrument of transfer in writing has been delivered to it;

     (b)    the transfer is exempted from the provisions of this paragraph
            pursuant to paragraph (6); or

            (c)    the transfer is made in accordance with an Order made under
                   Article 51A.](23)

     (2)    Paragraph (1) does not prejudice a power of the company to register
as a shareholder a person to whom the right to shares in the company has been
transmitted by operation of law.

     (3)    A transfer of the share or other interest of a deceased member of a
company made by his personal representative, although the personal
representative is not himself a member of the company, is as valid as if he had
been a member at the time of the execution of the instrument of transfer.

     (4)    On the application of the transferor of a share or interest in a
company, the company shall enter in its register of members the name of the
transferee in the same manner and subject to the same conditions as if the
application for the entry were made by the transferee.

     (5)    If a company refuses to register a transfer of shares the company
shall, within two months after the date on which the transfer was lodged with
it, give to the transferor and transferee notice of the refusal.

_______________________________

(23) Substituted by Companies (Amendment No. 4) (Jersey) Law, 1998 (Volume 1998,
page 500).

                                      27

<PAGE>

     [(6)   The Committee may by Order provide for exemptions from the
provisions of paragraph (1), either as regards specified companies or classes of
companies or as regards specified shares or classes of shares.](24)

                                   ARTICLE 43

                           CERTIFICATION OF TRANSFERS

     (1)    For the purpose of this Article-

     (a)    an instrument of transfer shall be deemed to be certificated if it
            bears the words "certificate lodged" or words to the like effect;

     (b)    the certification shall be deemed to be made by a company if-

            (i)    the person issuing the instrument is a person authorized to
                   issue certificated instruments of transfer on the company's
                   behalf, and

            (ii)   the certification is signed by a person authorized to
                   certificate transfers on behalf of the company or by an
                   officer or servant of the company or of a body corporate so
                   authorized;

     (c)    a certification is deemed to be signed by a person if-

            (i)    it purports to be authenticated by his signature or initials
                   (whether handwritten or not), and

            (ii)   it is not shown that the signature or initials was not or
                   were not placed there by him or by any other person
                   authorized to use the signature or initials for the purpose
                   of certificating instruments of transfer on behalf of the
                   company.

     (2)    The certification by a company of an instrument of transfer of any
shares or debentures in a company shall be taken as a representation by the
company to any person acting on the faith of the certification that there have
been produced to the company such documents as on their face show a prima facie
title to the shares or debentures in the transferor named in the instrument of
transfer but not as a representation that the transferor has any title to the
shares or debentures.

     (3)    Where a person acts on the faith of a false certification by a
company made negligently the company is under the same liability to him as if
the certification had been made fraudulently.

     (4)    Where a certification is expressed to be limited to 42 days or any
longer period from the date of certification, the company is not, in the absence
of fraud, liable in respect of the registration of any transfer of shares or
debentures comprised in the certification after the expiration of the period so
limited if the instrument of transfer has not, within that period, been lodged
with the company for registration.

                                   ARTICLE 44

                        LOCATION OF REGISTER OF MEMBERS

     (1)    A company's register of members shall be kept at its registered
office or, if it is made up at another place in the Island, at that place.

     (2)    A company shall give notice to the registrar of the place where its
register of members is kept, and of any change of that place.

_______________________________

(24) Submitted by Companies (Amendment No.4) (Jersey) Law, 1998 (Volume 1998,
page 500).

                                      28

<PAGE>

     (3)    The notice need not be given if the register has at all times since
it came into existence (for, in the case of a register in existence when this
Article comes into force, at all times since then) been kept at the company's
registered office.

     (4)    If a company fails for 14 days to comply with paragraph (2), the
company is guilty of an offence.

                                   ARTICLE 45

                             INSPECTION OF REGISTER

     (1)    The register of members shall during business hours be open to the
inspection of a member of the company without charge, and of any other person on
payment of such sum (if any), not exceeding the prescribed maximum, as the
company may require.

     (2)    A person may, in the case of-

     (a)    a public company or a company which is a subsidiary of a public
            company, on submission to the company of a declaration under Article
            46; and

     (b)    all companies, on payment of such sum (if any), not exceeding the
            prescribed maximum, as the company may require,

require a copy of the register and the company shall, within 10 days after the
receipt of the declaration and payment, cause the copy so required to be
available at the place where the register is kept for collection by that person
during business hours.

     (3)    If inspection under this Article is refused, or if a copy so
required is not made available within the proper period, the company is guilty
of an offence.

     (4)    In the case of refusal or default, the court may by order compel an
immediate inspection of the register, or direct that the copies required be made
available to the person requiring them.

                                   ARTICLE 46

                                  DECLARATION

     (1)    The declaration required under paragraph (2) of Article 45 or
paragraph (3) of Article 71 shall be made in writing under oath and shall state
the name and address of the applicant and contain an undertaking by him that no
information contained in the copy of the register made available to him will be
used by him, or by any person who acquires any such information on behalf of the
applicant, or directly or indirectly from the applicant or any such person, save
for the following purposes-

     (a)    to call a meeting of shareholders;

     (b)    to influence the voting by shareholders of the company at any such
            meeting.,

     (c)    an offer to acquire all the shares, or all the shares of any class
            in the company other than shares in which the applicant has directly
            or indirectly a beneficial interest; or

     (d)    any other purpose which may be prescribed.

     (2)    Where the applicant is a body corporate the declaration shall be
made by a director of the body corporate and the address given shall be its
address for service and where the applicant is an individual the declaration
shall state his residential address.

     (3)    If any such information is used in a manner inconsistent with the
terms of a declaration under paragraph (1) the person who made the declaration
is guilty of an offence.

                                      29

<PAGE>

                                   ARTICLE 47

                        RECTIFICATION OF SHARE REGISTER

     (1)    If-

     (a)    the name of a person, the number of shares held, the class of shares
            held, or the amount paid up on the shares held by him is, without
            sufficient reason, entered in or omitted from a company's register
            of members; or

     (b)    there is a failure or unnecessary delay in entering on the register
            the fact of a person having ceased to be a member, the person
            aggrieved, or a member of the company, or the company, may apply to
            the court for rectification of the register.

     (2)    The court may refuse the application or may order rectification of
the register and payment by the company of any damages sustained by a party
aggrieved.

     (3)    On an application under paragraph (1) the court may decide any
question necessary or expedient to be decided with respect to the rectification
of the register.

     (4)    Where an order is made under this Article, the company in relation
to which the order is made shall cause the relevant Act of the court to be
delivered to the registrar for registration within 14 days after the making of
the order; and in the event of failure to comply with this paragraph the company
is guilty of an offence.

                                   ARTICLE 48

                      TRUSTS NOT TO BE ENTERED ON REGISTER

     (1)    No notice of a trust, express, implied or constructive shall be
receivable by the registrar or entered on the register of members.

     (2)    The register of members is prima facie evidence of any matters which
are by this Law directed or authorized to be inserted in it.

                                 ARTICLE 49(25)

                                BRANCH REGISTERS

     The Committee may by Order provide for the keeping by a company of a branch
register of members in any place outside the Island.

                                   ARTICLE 50

                               SHARE CERTIFICATES

     (1)    Subject to this Article [and Article 51A](26), every company shall-

     (a)    within two months after the allotment of any of its shares; and

     (b)    within two months after the date on which a transfer of any of its
            shares is lodged with the company.

complete and have ready for delivery the certificates of all shares allotted or
transferred unless the conditions of allotment of the shares otherwise provide.

_______________________________

(25) Note should be had to the Companies (Overseas Branch Registers) (Jersey)
Order 1992, No. 8362.
(26) Inserted by Companies (Amendment No. 4) (Jersey) Law, 1998 (Volume 1998,
page 500).

                                      30

<PAGE>

     (2)    For this purpose "transfer" does not include a transfer which the
company is for any reason entitled to refuse to register and does not register.

     (3)    The Committee may by Order-

     (a)    provide for exemptions from the provisions of paragraph (1); and

     (b)    prohibit the issue of certificates,

either in the case of specified companies or as regards specified shares or
classes of shares.

     (4)    Paragraph (1) does not apply to an allotment or transfer of shares
to a nominee of a stock exchange upon which those shares are to be, or are,
listed.

     (5)    In the event of failure to comply with paragraph (1), the company
and every officer of it who is in default is guilty of an offence.

     (6)    If a company to which a notice has been given by a person entitled
to have the certificates delivered to him requiring it to make good a failure to
comply with paragraph (1) fails to make good the failure within 10 days after
the service of the notice, the court may, on the application of that person,
make an order directing the company and any officer of it to make good the
failure within a time specified in the order, and the order may provide that all
costs of and incidental to the application shall be borne by the company or by
an officer of it responsible for the failure.

                                   ARTICLE 51

                      CERTIFICATE TO BE EVIDENCE OF TITLE

     [(1)   A](27) certificate sealed by the company specifying any shares held
by a member is prima facie evidence of his title to the shares.

     [(2)   Paragraph (1) applies notwithstanding any subsequent change of the
currency in which the nominal amount of the shares to which the certificate
relates is expressed.](28)

                                [ARTICLE 51A(29)

                           UNCERTIFICATED SECURITIES

     (1)    Notwithstanding any other provision in this Law, the Committee may
by Order provide in accordance with this Article for title to securities or to
any specified class or description of securities to be evidenced and transferred
without a written instrument.

     (2)    An Order under this Article may provide for any of the following
matters-

     (a)    procedures for recording and transferring title to securities, and
            with respect to the keeping of the register of members in relation
            to such securities;

     (b)    the regulation of those procedures and the persons responsible for
            or involved in their operation;

     (c)    provision with respect to the rights and obligations of persons in
            relation to securities dealt with under such procedures;

     (d)    the giving of effect to-

_______________________________

(27) Inserted by the Companies (Amendment No. 5) (Jersey) Law, 1999 (Volume
1999, page 108).
(28) Inserted by Companies (Amendment No.5) (Jersey) Law, 1999 (Volume 1999,
page 108).
(29) Note should be had to the Companies (Uncertificated Securities) (Jersey)
Order 1999, No. 9462.

                                      31

<PAGE>

            (i)    the transmission of title to securities by operation of law;

            (ii)   any restriction on the transfer of title to securities
                   arising by virtue of the provisions of any enactment,
                   instrument, court order or agreement; and

            (iii)  any power conferred on a person, by any provision to which
                   clause (ii) refers, to deal with securities on behalf of the
                   person entitled;

     (e)    in relation to the persons responsible for or involved in the
            operation of the procedures to which sub-paragraph (a) refers,
            provision as to-

            (i)    the consequences of their insolvency, bankruptcy or
                   incapacity; and

            (ii)   the transfer by or from them to other persons of their
                   functions in relation to those procedures; and

     (f)    for any of the purposes in sub-paragraphs (a) to (e)-

            (i)    the modification or exclusion of any provisions of any
                   enactment or rule of law;

            (ii)   the application (with such modifications, if any, as the
                   Committee may think appropriate) of any provisions of this
                   Law creating criminal offences;

            (iii)  the application (with such modifications, if any, as the
                   Committee may think appropriate) of any other provisions of
                   any enactment (not being provisions creating criminal
                   offences);

            (iv)   the requiring of the payment of fees of such amounts as are
                   specified in the Order or are determined in accordance with
                   the Order, or the enabling of persons specified in the Order
                   to require payment of such fees; and

            (v)    the empowering of the Committee to delegate to any person
                   willing to discharge them any of its functions under the
                   Order.

     (3)    An Order made under this Article shall contain such safeguards as
appear to the Committee to be appropriate for the protection of investors.

     (4)    In this Article-

     (a)    "securities" means-

            (i)    shares, stocks, debentures, debenture stock, loan stock and
                   bonds;

            (ii)   warrants entitling the holders to subscribe for any
                   securities specified in clause (i);

            (iii)  units in a collective investment fund within the meaning of
                   the Collective Investment Funds (Jersey) Law 1988; and

            (iv)   other securities of any description;

     (b)    references to title to securities include any legal, equitable or
            other interest in securities; and

     (c)    references to a transfer of title include a transfer by way of
            security.](30)

                                     PART X

_______________________________

(30) Inserted by Companies (Amendment No. 4) (Jersey) Law, 1998 (Volume 1998,
pages 501 to 503).

                                      32

<PAGE>

                                  CLASS RIGHTS

                                   ARTICLE 52

                           VARIATION OF CLASS RIGHTS

     (1)    The provisions of this Article are concerned with the variation of
the rights attached to a class of shares in a company whose share capital is
divided into shares of different classes.

     (2)    If provision for the variation of the rights attached to a class of
shares is made in the memorandum or articles, or by the terms of issue of the
shares, those rights may only be varied in accordance with those provisions.

     (3)    If provision is not so made the rights may be varied if, but only
if-

     (a)    the holders of two-thirds in nominal value of the shares of the
            class consent in writing to the variation; or

     (b)    a special resolution passed at a separate meeting of the holders of
            that class sanctions the variation.

     (4)    Any alteration of a provision in the memorandum, or articles for the
variation of the rights attached to a class of shares, or the insertion of any
such provision into the memorandum or articles is itself to be treated as a
variation of those rights.

     (5)    In this Article, in Article 53 and (except where the context
otherwise requires) in any provision for the variation of the rights attached to
a class of shares contained in the memorandum or articles, or in the terms of
issue of the shares, references to the variation of those rights are to be read
as including references to their abrogation.

                                   ARTICLE 53

                   SHAREHOLDERS' RIGHT TO OBJECT TO VARIATION

     (1)    If the rights attached to any class of shares are varied in a manner
referred to in Article 52 the holders of not less in the aggregate than
one-tenth in nominal value of shares of the class (being persons who did not
consent to, or vote in favour of a resolution for, the variation) may apply to
the court to have the variation cancelled and, if such an application is made,
the variation has no effect unless and until it is confirmed by the court.

     (2)    The application to the court must be made within 28 days after the
date on which the consent was given or the resolution was passed and may be made
on behalf of the shareholders entitled to make it by one or more of them as they
may appoint in writing.

     (3)    Notice, signed by or on behalf of the applicants that an application
to the court has been made under this Article shall be given by or on behalf of
the applicants to the registrar within 7 days after it is made.

     (4)    The court after being satisfied that paragraph (3) has been complied
with, and after hearing the applicant and any other persons who appear to the
court to be interested in the application, may, if satisfied having regard to
all the circumstances, that the variation would unfairly prejudice the
shareholders of the class, disallow the variation and shall, if not so
satisfied, confirm it.

     (5)    The company shall, within 14 days after the making of an order by
the court under this Article deliver the relevant Act of the court to the
registrar; and if default is made in complying with this provision, the company
is guilty of an offence.

                                   ARTICLE 54

                                      33

<PAGE>

                 REGISTRATION OF PARTICULARS OF SPECIAL RIGHTS

     (1)    If a public company allots shares with rights which are not stated
in its memorandum or articles, or in a resolution or agreement a copy of which
is required by Article 100 to be delivered to the registrar, the company shall
deliver to the registrar within one month from allotting the shares, a statement
containing particulars of those rights.

     (2)    Paragraph (1) does not apply if the shares are in all respects
uniform with shares previously allotted; and shares are not for this purpose to
be treated as different from shares previously allotted by reason only that the
former do not carry the same rights to dividends as the latter during the 12
months immediately following the former's allotment.

     (3)    Where the rights attached to shares of a public company are varied
otherwise than by an amendment of the company's memorandum or articles or by a
resolution or agreement subject to Article 100, the company shall within one
month from the date on which the variation is made deliver to the registrar a
statement containing particulars of the variation.

     (4)    Where a public company, otherwise than by an amendment, resolution
or agreement mentioned in paragraph (3), assigns a name or other designation, or
a new name or other designation, to a class of its shares, it shall within one
month from doing so deliver to the registrar a notice giving particulars of the
name or designation so assigned.

     (5)    If a company fails to comply with this Article, the company and
every officer of it who is in default is guilty of an offence.

                                    PART XI

                       REDEMPTION AND PURCHASE OF SHARES

                                   ARTICLE 55

                        POWER TO ISSUE REDEEMABLE SHARES

     (1)    Subject to the provisions of this Article, and Articles 56 to 58, a
company may, if authorized to do so by its articles-

     (a)    issue; or

     (b)    convert existing non-redeemable shares, whether issued or not, into,

shares which are to be redeemed, or are liable to be redeemed, at the option of
the company or the shareholder.

     (2)    No redeemable shares may be issued at a time when there are no
issued shares of the company which are not redeemable, and no existing issued
non-redeemable shares shall be converted into redeemable shares, if, as a result
there are no issued shares of the company which are not redeemable.

     (3)    Shares may be redeemed only when they are fully paid and only from
the following sources

     (a)    in the case of the nominal value of the shares-

            (i)    from profits out of which a company may make a distribution
                   under sub-paragraph (a) of paragraph (2) of Article 114, or

            (ii)   from profits out of which a company may make a distribution
                   under sub-paragraph (b) of paragraph (2) of Article 114, but
                   subject to the proviso to that sub-paragraph, or,

                                      34

<PAGE>

            (iii)  from the proceeds of a fresh issue of shares made for the
                   purposes of the redemption,

            or from a combination of any of the foregoing;

     (b)    in the case of any premium paid on redemption-

            (i)    from a share premium account, or

            (ii)   from the sources mentioned in sub-paragraph (a), or

            (iii)  with the sanction of a special resolution, and subject to the
                   proviso to paragraph (3) of Article 114, from the sources
                   mentioned in that paragraph,

            or from a combination of any of the foregoing.

     (4)    A special resolution passed for the purposes of clause (iii) of
sub-paragraph (b) of paragraph (3) may have effect in relation to a particular
redemption of shares or generally but shall not be capable of sanctioning any
redemption effected more than 18 months after the resolution is passed.

     (5)    If shares are redeemed wholly out of a company's profits there shall
be transferred out of profits out of which the company may make a distribution
under Article 114 to a reserve to be called the capital redemption reserve a sum
equal to the nominal value of the shares redeemed.

     (6)    If shares are redeemed wholly or partly out of the proceeds of a
fresh issue and the aggregate amount of those proceeds is less than the
aggregate nominal value of the shares redeemed, the amount of the difference
shall be transferred out of profits out of which the company may make a
distribution under Article 114 to the capital redemption reserve.

     (7)    The provisions of Article 61 shall, except as provided by this
Article, apply as if the capital redemption reserve were paid up share capital
of the company except that the reserve may be applied in paying up unissued
shares to be allotted as fully paid bonus shares.

     (8)    Upon the redemption of shares under this Article, the amount of the
company's issued share capital shall be diminished by the nominal value of those
shares but the redemption shall not be taken as reducing the authorized share
capital of the company.

     (9)    Where pursuant to this Article a company is about to redeem shares,
it may issue shares up to the nominal amount of the shares to be redeemed as if
those shares had never been issued.

     (10)   Any preference shares issued by a company before Article 223 comes
into force which could but for the repeal of Article 5 of the Companies
(Supplementary Provisions) (Jersey) Law 1968(31) have been redeemed under that
Article shall be subject to redemption either in accordance with that Article or
in accordance with the provisions of this Law.

     (11)   Any capital redemption reserve fund established before Article 223
comes into force for the purposes of Article 5 of the Companies (Supplementary
Provisions) (Jersey) Law 1968(32), shall be known as the company's capital
redemption reserve and shall be treated as if it had been established for the
purposes of this Article, and any existing enactment or in the articles of any
company or in any other instrument to a company's capital redemption reserve
fund shall be construed as a reference to the company's capital redemption
reserve fund shall be construed as a reference to the company's capital
redemption reserve.

                                   ARTICLE 56

_______________________________

(31) Volume 1968-1969, page 112.
(32) Volume 1968-1969, page 112.

                                      35

<PAGE>

                      FINANCIAL REQUIREMENTS ON REDEMPTION

     A company shall not make a payment from share premium account or unrealized
profits to redeem redeemable shares unless the directors reasonably believe
that, immediately after the payment has been made-

     (a)    the company will be able to discharge its liabilities as they fall
            due; and

     (b)    the value of the company's assets will be not less (in the case of a
            payment from share premium account) than the aggregate of its
            liabilities or (in the case of a payment from unrealized profits)
            than the aggregate of-

            (i)    its liabilities,

            (ii)   the nominal amount of its issued shares,

            (iii)  any amount standing to the credit of its share premium
                   account, and

            (iv)   any amount standing to the credit of its capital redemption
                   reserve including any part of that reserve attributable to
                   the redemption.

                                 ARTICLE 57(33)

                    POWER OF COMPANY TO PURCHASE OWN SHARES

(1)  A company may purchase its own shares (including any redeemable shares).

(2)  A purchase under this Article shall, unless the company is a wholly-owned
     subsidiary, be sanctioned by a special resolution.

(3)  If the shares are to be purchased otherwise than on a stock exchange, they
     shall not carry the right to vote on the resolution authorizing the
     purchase.

(4)  If the shares are to be purchased, on a stock exchange the resolution
     authorizing the purchase shall specify-

     (a)    the maximum number of shares to be purchased;

     (b)    the maximum and minimum prices which may be paid; and

     (c)    a date, not being later than 18 months after the passing of the
            resolution, on which the authority to purchase is to expire.

     (5)    Article 55 and 56 apply to the purchase by a company under this
Article of its own shares as they apply to the redemption of redeemable shares.

     (6)    A company may not under this Article purchase its shares if as a
result of the purchase there would no longer be a member of the company holding
shares other than redeemable shares.

                                   ARTICLE 58

           FINANCIAL ASSISTANCE BY COMPANY FOR PURCHASE OF OWN SHARES

     (1)    Subject as provided in this Article, it is not lawful for a company
to give financial assistance directly or indirectly for the purpose of, or in
connexion with, the acquisition made or to be made by any person of any shares
in the company or where the company is a subsidiary, in any holding company of
it.

_______________________________

(33) Note should be had to the Companies (Purchase of Own Shares) (Jersey)
Regulations 1992, No. 8333.

                                      36

<PAGE>

     (2)    This Article does not prohibit-

     (a)    assistance given in the ordinary course of the company's business;
            or

     (b)    assistance given by means of any distribution of the company's
            assets to its members, lawfully made; or

     (c)    the provision by a company in good faith in the interests of the
            company of assistance for the purposes of an employees' share
            scheme; or

     (d)    the making by a company of loans to persons (other than directors)
            employed in good faith by the company with a view to enabling those
            persons to acquire fully paid shares in the company or its holding
            company to be held by them by way of beneficial ownership.

     (3)    This Article does not prohibit a company from giving financial
assistance if-

     (a)    the giving of the assistance is sanctioned by a prior special
            resolution of the company proposing to give it and, where the
            company is a wholly owned subsidiary, by prior special resolution of
            any holding company of it which is not itself a wholly-owned
            subsidiary; and

     (b)    the directors of the company reasonably believe that, immediately
            after the assistance has been given the company will be able to
            discharge its liabilities as they fall due and the value of the
            company's assets will be not less than the aggregate of

            (i)    its liabilities,

            (ii)   the nominal amount of its issued shares.

            (iii)  any amount standing to the credit of its share premium
                   account, and

            (iv)   any amount standing to the credit of its capital redemption
                   reserve.

     (4)    For the purposes of this Article, an employees' share scheme is a
scheme for encouraging or facilitating the holding of shares or debentures in a
company by or for the benefit of-

     (a)    the bona fide employees or former employees of the company, the
            company's subsidiary or holding company or a subsidiary of the
            company's holding company; or

     (b)    the wives, husbands, widows, widowers or minor children or minor
            step-children of such employees or former employees.

     (5)    If a company gives financial assistance in contravention of this
Article the company and any officer of it who is in default is guilty of an
offence.

                                   ARTICLE 59

     POWER OF STATES TO EXTEND OR MODIFY THE PROVISIONS OF ARTICLES 55 TO 58

     (1)    The States may by Regulations enable private companies to redeem or
purchase their own shares out of capital, specifying the conditions under which
this may be done.

     (2)    The States may by Regulations extend or modify the provisions of
Articles 55 to 58 with respect to any of the following matters-

                                      37

<PAGE>

     (a)    the circumstances and the manner in which a company may redeem or
            purchase its own shares or give financial assistance for the
            acquisition of its own shares or shares in its holding company;

     (b)    the transactions which are or are not to be treated as giving
            financial assistance for those purposes; and

     (c)    the authority required for a purchase or redemption by a company of
            its own shares.

                                    PART XII

                              REDUCTION OF CAPITAL

                                   ARTICLE 60

                              FORFEITURE OF SHARES

     A company, if authorized by its articles, may cause to forfeited any of its
shares issued otherwise than fully paid for failure to pay any sum due and
payable thereon.

                                   ARTICLE 61

               SPECIAL RESOLUTION FOR REDUCTION OF SHARE CAPITAL

     (1)    Subject to confirmation by the court, a company may by special
resolution reduce its share capital in any way.

     (2)    In particular, and without prejudice to paragraph (1), the company
may-

     (a)    extinguish or reduce the liability on any of its shares in respect
            of share capital not paid up; or

     (b)    with or without extinguishing or reducing liability on any of its
            shares, cancel any paid up share capital which is lost or
            unrepresented by available assets; or

     (c)    with or without extinguishing or reducing liability on any of its
            shares, pay off any paid up share capital which is in excess of the
            company's wants,

and the company may, if and so far as is necessary, alter its memorandum by
reducing the amount of its share capital and of its shares accordingly.

     [(2A)  Notwithstanding paragraph (1), a reduction of share capital shall
not be subject to confirmation by the court if-

     (a)    the reduction does not extinguish or reduce the liability on any
            share in respect of capital which is not paid up; and

     (b)    the reduction does not reduce the net assets of the company,

and the amount of the reduction is credited to a capital redemption reserve
which may be applied only in paying up unissued shares which are to be allotted
to members as fully paid bonus shares.](34)

     (3)    A special resolution under this Article is in this Law referred to
as "a resolution for reducing share capital".

_______________________________

(34) Inserted by the Companies (Amendment No. 5) (Jersey) Law, 1999 (Volume
1999, pages 108 and 109).

                                      38

<PAGE>

                                   ARTICLE 62

                 APPLICATION TO COURT FOR ORDER OF CONFIRMATION

     (1)    Where a company has passed a resolution for reducing share capital,
it may apply to the court for an order confirming the reduction.

     (2)    If the proposed reduction of share capital involves either -

     (a)    a diminution of liability in respect of unpaid share capital; or

     (b)    the payment to a shareholder of any paid-up share capital,

and in any other case if the court so directs, the next three paragraphs have
effect, but subject throughout to paragraph (6).

     (3)    Every creditor of the company who at the date fixed by the court is
entitled to a debt or claim which if that date were the commencement of the
winding up of the company, would be admissible in proof against the company is
entitled to object to the reduction of capital.

     (4)    The court shall settle a list of creditors entitled to object and
for that purpose -

     (a)    shall ascertain, as far as possible, without requiring an
            application from any creditor, the names of those creditors and the
            nature and amount of their debts or claims; and

     (b)    may publish notices fixing a day or days within which creditors not
            entered on the list are to claim to be so entered or are to be
            excluded from the right of objecting to the reduction of capital.

     (5)    If a creditor entered on the list whose debt or claim is not
discharged or has not determined does not consent to the reduction, the court
may dispense with the consent of that creditor, on the company securing payment
of his debt or claim appropriating (as the court may direct) the following
amount -

     (a)    if the company admits the full amount of the debt or claim or,
            though not admitting it, is willing to provide for it, then the full
            amount of the debt or claim;

     (b)    if the company does not admit, and is not willing to provide for,
            the full amount of the debt or claim, or if the amount is contingent
            or not ascertained, then an amount fixed by the court after an
            enquiry and adjudication.

     (6)    If a proposed reduction of share capital involves either the
diminution of a liability in respect of unpaid share capital or the payment to
shareholder of paid up share capital, the court may, if having regard to any
special circumstances of the case it thinks proper to do so, direct that
paragraphs (3) to (5) shall not apply as regards any class or any classes of
creditors.

                                   ARTICLE 63

                        COURT ORDER CONFIRMING REDUCTION

     (1)    The court, if satisfied with respect to every creditor of the
company who under Article 62 is entitled to object to the reduction of capital
that either -

     (a)    his consent to the reduction has been obtained; or

     (b)    his debt or claim has been discharged or has determined, or has been
            secured,

may make an order confirming the reduction on such terms and conditions as it
thinks fit.

     (2)    Where the court so orders, it may also make an order requiring the
            company to

                                      39

<PAGE>

publish (as the court directs) the reasons for reduction of capital or such
other information in regard to it as the court thinks expedient with a view to
giving proper information to the public and (if the court thinks fit) the causes
which led to the reduction.

                                   ARTICLE 64

                  REGISTRATION OF ACT AND MINUTE OF REDUCTION

     (1)    The registrar, on delivery to him of an Act of the court confirming
the reduction of a company's share capital, and of a minute (approved by the
court) showing, with respect to the company's authorized share capital and its
issued share capital as altered by the Act -

     (a)    the amount of the share capital;

     (b)    the number of shares into which it is to be divided, and the amount
            of each share; and

     (c)    the amount (if any) at the date of the registration deemed to be
            paid up on each share which has been issued,

shall register the Act and minute.

     (2)    On the registration of the Act and minute the resolution for
reducing the share capital as confirmed by the Act shall take effect.

     (3)    The registrar shall certify the registration of the Act and minute
and the certificate

     (a)    shall be signed by the registrar and sealed with his seal;

     (b)    is conclusive evidence that all the requirements of this Law with
            respect to the reduction of share capital have been complied with,
            and the company's share capital is as stated in the minute.

     (4)    The minute when registered is deemed to be substituted for the
corresponding part of the company's memorandum.

                                   ARTICLE 65

                     LIABILITY OF MEMBERS ON REDUCED SHARES

     (1)    Where a company's share capital is reduced, a member of the company
(past or present) is not liable in respect of any share to a call or
contribution exceeding in amount the difference (if any) between the amount of
the share as fixed by the minute and the amount paid on the share or the reduced
amount (if any) which is deemed to have been paid on it.

     (2)    Paragraphs (3) and (4) apply if -

     (a)    a creditor, entitled in respect of a debt or claim to object to the
            reduction of share capital, by reason of his ignorance of the
            proceedings for reduction of share capital, or of their nature and
            effect with respect to his claim, is not entered on the list of
            creditors; and

     (b)    after the reduction of capital, the company is unable to pay the
            amount of his debt or claim.

     (3)    Every person who was a member of the company at the date of the
registration of the Act and minute is then liable to contribute for the payment
of the debt or claim in question an amount not exceeding that which he would
have been liable to contribute if the company had commenced to be wound up on
the day before that date.

                                      40

<PAGE>

     (4)    If the company is wound up under this Law, or a declaration is made
under the Desastre Law, the court, on the application of the creditor in
question and proof of ignorance referred to in sub-paragraph (a) of paragraph
(2) may settle accordingly a list of persons so liable to contribute, and make
and enforce calls and orders on the contributories settled on the list, as if
they were ordinary contributories in a winding up.

     (5)    Nothing in this Article affects the rights of the contributories
among themselves.

                                   ARTICLE 66

                 PENALTY FOR CONCEALING NAME OF CREDITOR, ETC.

     If an officer of the company-

     (a)   wilfully conceals the name of a creditor entitled to object to the
           reduction of capital; or

     (b)   wilfully misrepresents the nature or amount of the debt or claim of
           a creditor; or

     (c)   aids, abets or is privy to any such concealment or misrepresentation,

he is guilty of an offence.

                                   PART XIII

                                 ADMINISTRATION

                                   ARTICLE 67

                               REGISTERED OFFICE

     (1)    A company shall at all times have a registered office in the Island
to which all communications and notices may be addressed.

     (2)    On incorporation the situation of the company's registered office
shall be that specified in the statement sent to the registrar under Article 7.

     (3)    The company may change the situation of its registered office from
time to time by giving notice to the registrar.

     (4)    The change shall take effect upon the notice being registered by the
registrar, but until the end of the period of 14 days beginning with the date on
which it is registered a person may validly serve any document on the company at
its previous registered office.

     (5)    For the purposes of any duty of a company-

     (a)    to keep at its registered office, or make available for public
            inspection there, any document; or

     (b)    to mention the address of its registered office in any document,

a company which has given notice to the registrar of a change in the situation
of its registered office may act on the change as from such date, not more than
14 days after the notice is given, as it may determine.

     (6)    Where a company unavoidably ceases to perform at its registered
office any such duty as is mentioned in sub-paragraph (a) of paragraph (5) in
circumstances in which it was not practicable to give prior notice to the
registrar of a change in the situation of its registered office, but-

                                      41

<PAGE>

     (a)    resumes performance of that duty at other premises as soon as
            practicable; and

     (b)    gives notice accordingly to the registrar of a change in the
            situation of its registered office within 14 days of doing so,

it shall not be treated as having failed to comply with that duty.

     (7)    In proceedings for an offence of failing to comply with any such
duty as is mentioned in paragraph (5), it is for the person charged to show that
by reason of the matters referred to in that paragraph or paragraph (6) no
offence was committed.

                                   ARTICLE 68

            COMPANY'S NAME TO BE DISPLAYED OUTSIDE REGISTERED OFFICE

     (1)    The name of a company shall be displayed on the outside of its
registered office in a conspicuous position which is accessible to the public
during business hours and in letters easily legible.

     (2)    If the name of a company is not displayed as required in paragraph
(1), the company is guilty of an offence.

                                   ARTICLE 69

              COMPANY'S NAME TO APPEAR IN ITS CORRESPONDENCE, ETC.

     (1)    The name of a company shall appear in legible characters in all its-

     (a)    business letters, statements of account, invoices and order forms;

     (b)    notices and other official publications; and

     (c)    negotiable instruments and letters of credit purporting to be signed
     by or on behalf of the company.

     (2)    If a company fails to comply with paragraph (1) it is guilty of an
offence.

                                   ARTICLE 70

                      PARTICULARS IN CORRESPONDENCE, ETC.

     (1)    The address of the registered office of a company shall appear in
legible characters in all its business letters and order forms.

     (2)    If there is on the stationery used for any such letters, or on the
company's order forms, a reference to the amount of share capital, the reference
shall be to paid up share capital.

     (3)    If a company fails to comply with paragraph (1) or (2) it is guilty
of an offence.

                                 ARTICLE 71(35)

                                 ANNUAL RETURN

_______________________________

(35) Note should be had to the Companies (General Provisions) (Jersey) Order
1992, No. 8324), the Companies (General Provisions) (Amendment) (Jersey) Order
1992, No. 8390, the Companies (General Provisions) (Amendment No. 2) (Jersey)
Order 1995, No. 8782, the Companies (General Provisions) (Amendment No. 3)
(Jersey) Order 1995, No. 8868 and the Companies (General Provisions) (Amendment
No. 4) (Jersey) Order 1998, No. 9262.

                                      42

<PAGE>

     (1)    Every company (other than a company in a creditors winding up or a
company which is the subject of a declaration under the Desastre Law) shall
before the end of February in every year after the year in which it is
incorporated deliver to the registrar a return stating-

     (a)    in respect of each class of shares in the company either-

            (i)    the name and address of each member who on 1st January in
                   that year held not less than one per cent in nominal value of
                   all the issued shares of that class and the number of shares
                   of that class so held by him, together with the number of
                   members each of whom on that date held less than one per cent
                   in nominal value of all the issued shares of that class and
                   the total number of shares comprised in those holdings; or

            (ii)   the name and address of every member who on 1st January in
                   that year held any shares of that class and the number of
                   shares of that class held by him;

     (b)    in the case of a company which at the date of the return is a public
            company or a subsidiary of a public company the particulars with
            respect to the persons who at that date are directors of the company
            which are required by Article 84 to be kept in the register kept
            under Article 83.

     (2)    The return shall contain such information as may be prescribed and
the prescribed declarations and verifications and be accompanied by the
prescribed filing fee.

     (3)    The registrar shall not provide to any person a copy of a return
made under this Article by a public company unless that person has delivered to
the registrar a declaration under Article 46 in respect of it.

     (4)    If a return required by this Article is not delivered to the
registrar-

     (a)    by the end of February in any year, there shall be payable when the
            return is delivered a prescribed late filing fee not exceeding four
            times the prescribed filing fee;

     (b)    by the end of June in any year, the company is guilty of an offence
            and in addition to liability for the prescribed late filing fee is
            liable to a default fine not exceeding one half of the prescribed
            filing fee for each day during which the default continues.

                                   ARTICLE 72

                              SERVICE OF DOCUMENTS

     A document may be served on a company -

     (a)    by leaving it at, or sending it by post to, the registered office of
            the company; or

     (b)    in accordance with paragraph (4) of Article 67; or

     (c)    in the case of an existing company if no office is registered, by
            sending it by post-

            (i)    in the case of a public company which is in compliance with
                   the requirements of Article 83 to any person who is shown on
                   the register kept in accordance with that Article as a
                   director or secretary of the company at the address entered
                   in that register;

            (ii)   in any other case to any person shown as a member of the
                   company in the register of members or in the latest annual
                   return delivered to the registrar under Article 71 at his
                   address entered in that register or, as the case may be, in
                   that return; and

                                      43

<PAGE>

            (iii)  where no annual return has been delivered to the registrar in
                   compliance with Article 71 to any person whose name appears
                   as a subscriber in the company's memorandum at his address
                   shown in the memorandum.

                                    PART XIV

                            DIRECTORS AND SECRETARY

                                   ARTICLE 73

                                   DIRECTORS

     (1)    A private company shall have at least one director and a public
company shall have at least two directors.

     (2)    No person shall be a director who-

     (a)    is a minor; or

     (b)    is an interdict; or

     (c)    is disqualified for being a director under this or any other
            enactment; or

     (d)    is a body corporate.

     (3)    Sub-paragraph (d) of paragraph (2) shall not apply to an existing
company until the expiration of six months from the date on which this Article
comes into force.

                                   ARTICLE 74

                              DUTIES OF DIRECTORS

     (1)    A director, in exercising his powers and discharging his duties,
shall-

     (a)    act honestly and in good faith with a view to the best interests of
            the company; and

     (b)    exercise the care, diligence and skill that a reasonably prudent
            person would exercise in comparable circumstances.

     (2)    Without prejudice to the operation of any rule of law empowering the
members, or any of them, to authorize or ratify a breach of this Article, no act
or omission of a director shall be treated as a breach of paragraph (1) if-

     (a)    all of the members of the company authorize or ratify the act or
            omission; and

     (b)    after the act or omission the company is able discharge its
            liabilities as they fall due and the value of the company's assets
            is not less than its liabilities.

                                   ARTICLE 75

                    DUTY OF DIRECTORS TO DISCLOSE INTERESTS

     (1)    A director of a company who has, directly or indirectly, an interest
in a transaction entered into or proposed to be entered into by the company or
by a subsidiary of the company which to a material extent conflicts or may
conflict with the interests of the company and of which he is aware, shall
disclose to the company the nature and extent of his interest.

     (2)    The disclosure under paragraph (1) shall be made as soon as
practicable after the director becomes aware of the circumstances which gave
rise to his duty to make it.

                                      44

<PAGE>

     (3)    A notice in writing given to the company by a director that he is to
be regarded as interested in a transaction with a specified person is sufficient
disclosure of his interest in any such transaction entered into after the notice
is given.

     (4)    Nothing in this Article prejudices the operation of any rule of law
restricting directors of a company from having an interest in transactions with
a company.

                                   ARTICLE 76

               CONSEQUENCES OF FAILURE TO COMPLY WITH ARTICLE 75

     (1)    Subject to paragraphs (2) and (3), where a director fails to
disclose an interest of his under Article 75 the company or a member of the
company may apply to the court for an order setting aside the transaction
concerned and directing that the director account to the company for any profit
or gain realised, and the court may so order or make such other order as it
thinks fit.

     (2)    A transaction is not voidable, and a director is not accountable,
under paragraph (1) where, notwithstanding a failure to comply with Article 75 -

     (a)    the transaction is confirmed by special resolution; and

     (b)    the nature and extent of the director's interest in the transaction
            were disclosed in reasonable detail in the notice calling the
            meeting at which the resolution is passed.

     (3)    Without prejudice to its power to order that a director account for
any profit or gain realised, the court shall not set aside a transaction unless
it is satisfied that -

     (a)    the interests of third parties who have acted in good faith
            thereunder would not thereby be unfairly prejudiced; and

     (b)    the transaction was not reasonable and fair in the interests of the
            company at the time it was entered into.

                                   ARTICLE 77

                   INDEMNITY OF OFFICERS AND FORMER OFFICERS

     (1)    Subject to paragraphs (2) and (3), any provision, whether contained
in the articles of, or in a contract with, a company or otherwise, whereby the
company or any of its subsidiaries or any other person, for some benefit
conferred or detriment suffered directly or indirectly by the company, agrees to
exempt any person from, or indemnify him against, any liability which by law
would otherwise attach to him by reason of the fact that he is or was an officer
of the company shall be void.

     (2)    Paragraph (1) does not apply to a provision for exempting a person
from or indemnifying him against -

     (a)    any liabilities incurred in defending any proceedings (whether civil
            or criminal) -

            (i)    in which judgment is given in his favour or he is acquitted,
                   or

            (ii)   which are discontinued otherwise than for some benefit
                   conferred by him or on his behalf or some detriment suffered
                   by him, or

            (iii)  which are settled on terms which include such benefit or
                   detriment and, in the opinion of a majority of the directors
                   of the company (excluding any director who conferred such
                   benefit or on whose behalf such benefit was conferred or who
                   suffered such detriment), he was substantially successful on
                   the merits in his resistance to the proceedings; or

                                      45

<PAGE>

     (b)    any liability incurred otherwise than to the company if he acted in
            good faith with a view to the best interests of the company; or

     (c)    any liability incurred in connexion with an application made under
            Article 212 in which relief is granted to him by the court; or

     (d)    any liability against which the company normally maintains insurance
            for persons other than directors.

     (3)    Nothing in this Article shall deprive a person of any exemption or
indemnity to which he was lawfully entitled in respect of anything done or
omitted by him before the coming into force of this Article.

     (4)    This Article does not prevent a company from purchasing and
maintaining for any such officer insurance against any such liability.

                                   ARTICLE 78

                            DISQUALIFICATION ORDERS

     (1)    Where it appears to the Committee[, the Commission](36) or the
Attorney General that it is expedient in the public interest that any person
should not, without the leave of the court, be a director of, or in any way
whether directly or indirectly be concerned or take part in the management of, a
company, the Committee[, the Commission] or the Attorney General, as the case
may be, may apply to the court for an order to that effect to be made against
that person.

     (2)    The court may make an order against a person where, on an
application under this Article, the court is satisfied that his conduct in
relation to a company makes him unfit to be concerned in the management of a
company.

     (3)    An order under paragraph (2) shall be for such period not exceeding
five years as the court thinks fit.

     (4)    A person who acts in contravention of an order made under this
Article is guilty of an offence.

                                   ARTICLE 79

  PERSONAL RESPONSIBILITY FOR LIABILITIES WHERE PERSON ACTS WHILE DISQUALIFIED

     (1)    A person who acts in contravention of an order made under Article 78
is personally responsible for such liabilities of the company as are incurred at
a time when that person was, in contravention of the order, involved in the
management of the company

     (2)    Where a person is personally responsible under paragraph (1) for
liabilities of a company he is jointly and severally liable in respect of those
liabilities with the company and any other person who, whether under this
Article or otherwise, is so liable.

     (3)    For the purposes of this Article, a person is involved in the
management of a company if he is a director of the company or if he is
concerned, whether directly or indirectly, or takes part in, the management of
the company.

                                   ARTICLE 80

                          VALIDITY OF ACTS OF DIRECTOR

     The acts of a director are valid notwithstanding any defect that may
afterwards be found in

_______________________________

(36) Words inserted by the Financial Services Commission (Jersey) Law 1998,
(Volume 1998, page 269).

                                      46

<PAGE>

his appointment or qualification.

                                   ARTICLE 81

                                   SECRETARY

     (1)    Every company shall have a secretary.

     (2)    A sole director shall not also be a secretary.

     (3)    Anything required or authorized to be done by or to the secretary
may, if the office is vacant or there is for any other reason no secretary
capable of acting, be done by or to an assistant or deputy secretary or, if
there is no assistant or deputy secretary capable of acting, by or to an officer
of the company authorized generally or specially in that behalf by the
directors.

     (4)    No company shall have as secretary to the company a body corporate
the sole director of which is a sole director of the company.

                                   ARTICLE 82

                          QUALIFICATIONS OF SECRETARY

     (1)    It is the duty of the directors of a public company to take all
reasonable steps to secure that the secretary (or each joint secretary) of the
company is a person who appears to them to have the requisite knowledge and
experience to discharge the functions of secretary of the company and who -

     (a)    on the coming into force of this Article was the secretary or
            assistant or deputy secretary of the company; or

     (b)    is a member of any of the professional bodies specified in paragraph
            (2); or

     (c)    is an advocate or solicitor of the Royal Court; or

     (d)    is a person who, by virtue of holding or having held any other
            position or being a member of any other body, appears to the
            directors to be capable of discharging those functions.

     (2)    The professional bodies referred to in sub-paragraph (b) of
paragraph (1) are -

     (a)    the Institute of Chartered Accountants in England and Wales;

     (b)    the Institute of Chartered Accountants of Scotland;

     (c)    the Chartered Association of Certified Accountants;

     (d)    the Institute of Chartered Accountants in Ireland;

     (e)    the Institute of Chartered Secretaries and Administrators;

     [(f)   the Chartered Institute of Management Accountants;](37)

     (g)    the Chartered Institute of Public Finance and Accountancy.

     (3)    the Committee may by Order amend paragraph (2).

                                   ARTICLE 83

_______________________________

(37) Inserted by the Companies (Qualifications of Secretary) (Jersey) Order
1992, No. 8326.

                                      47

<PAGE>

                     REGISTER OF DIRECTORS AND SECRETARIES

     (1)    Every company shall keep at its registered office a register of its
directors and secretary; and the register shall with respect to the particulars
to be contained in it comply with Articles 84 and 85.

     (2)    The register shall during business hours (subject to such reasonable
restrictions as the company may by its articles or in general meeting impose,
but so that not less than two hours in each business day be allowed for
inspection) be open to the inspection of the registrar and of a member or
director of the company without charge and, in the case of a public company or a
company which is subsidiary of a public company, of any other person on payment
of such sum (if any), not exceeding the prescribed maximum, as the company may
require.

     (3)    The registrar shall not disclose or make use of any information
obtained by him as a result of the exercise of the right conferred upon him by
paragraph (2) except for the purpose of enabling any provision of this Law or
any obligation owed to the company by an officer or secretary of the company to
be enforced.

     (4)    If an inspection required under this Article is refused, or if there
is a failure to comply with paragraph (1), the company and every officer of it
who is in default is guilty of an offence.

     (5)    In the case of a refusal of inspection of the register, the court
may by order compel an immediate inspection of it.

                                   ARTICLE 84

                            PARTICULARS OF DIRECTORS

     (1)    Subject to the provisions of this Article, the register kept by a
company under Article 83 shall contain the following particulars with respect to
each director -

     (a)    his present forenames and surname;

     (b)    any former forenames or surname;

     (c)    his business or usual residential address;

     (d)    his nationality;

     (e)    his business occupation (if any);

     (f)    his date of birth; and

     (g)    the date on which he became a director and, where appropriate, the
            date on which he ceased to be a director.

     (2)    In paragraph (1) and in Article 85 -

     (a)    "surname", in the case of a peer or a person usually known by a
            title different from his surname, means that title; and

     (b)    the reference to a former forename or surname does not include -

            (i)    in the case of a peer or a person usually known by a British
                   title different from his surname, the name by which he was
                   known previous to the adoption of or succession to the title,
                   or

            (ii)   in the case of any person, a former forename or surname where
                   that name or surname was changed or disused before the person
                   bearing the name

                                      48

<PAGE>

                   attained the age of 20, or has been changed or discussed for
                   a period of not less than 20 years.

                                   ARTICLE 85

                           PARTICULARS OF SECRETARIES

     The register to be kept by a company under Article 83 shall contain the
following particulars with regard to the secretary, or, where there are joint
secretaries, with respect to each of them -

     (a)    in the case of an individual, his present forenames and surname, any
            former forenames or surname and his usual residential address;

     (b)    in the case of a body corporate or a Scottish firm, its corporate or
            firm name, the place where it is incorporated and its registered or
            principle office and

     (c)    in either case, the date on which he or it became the secretary and,
            where appropriate, the date on which he or it ceased to be the
            secretary.

                                    PART XV

                                    MEETINGS

                                   ARTICLE 86

                           PARTICIPATION IN MEETINGS

     (1)    Subject to the articles of a company, if a member is by any means in
communication with one or more other members so that each member participating
in the communication can hear what is said by any other of them, each member so
participating in the communication is deemed to be present at a meeting with the
other members so participating

     (2)    Paragraph (1) applies to the participation in such communication by
directors or by members of a committee of directors as it applies to the
particpation of members of a company

                                   ARTICLE 87

                             ANNUAL GENERAL MEETING

     (1)    Paragraphs (2) and (3) shall have effect subject to paragraphs (4)
to (7).

     (2)    Every company shall in each year hold a general meeting as its
annual general meeting in addition to any other meetings in that year and shall
specify the meeting as such in the notice calling it; but so long as a company
holds its first annual general meeting within 18 months of its incorporation, it
need not hold it in the year of its incorporation or in the following year.

     (3)    In the case of a public company, not more than 18 months, and in the
case of a private company, not more than 22 months shall elapse between the date
of one annual general meeting and the date of the next.

     (4)    If all members of a private company agree in writing that an annual
general meeting shall be dispensed with, then so long as the agreement has
effect, it shall not be necessary for that company to hold an annual general
meeting.

     (5)    In any year in which an annual general meeting would be required to
be held but for such an agreement and in which no such meeting has been held,
any member of the company may by written notice to the company given not later
than three months before the end of the year require the holding of an annual
general meeting in that year.

     (6)    Notwithstanding anything contained in any such agreement, it shall
cease to have

                                      49

<PAGE>

effect-

     (a)    if any person who becomes a member of the company while the
            agreement is in force does not within two months of becoming a
            member accede to the agreement; or

     (b)    if any member of the company gives written notice to the company
            determining the agreement; or

     (c)    if the company ceases to be a private company.

     (7)    If such an agreement ceases to have effect, whether pursuant to
paragraph (6) or otherwise, and an annual general meeting has not previously
been held in the year in which the cessation takes place, the directors shall
forthwith call an annual general meeting to be held within three months after
the agreement ceases to have effect.

     (8)    If a public company fails to comply with paragraph (2) or (3), it
and every director of it in default is guilty of an offence.

                                   ARTICLE 88

                  COMMITTEE'S POWER TO CALL MEETING IN DEFAULT

     (1)    If default is made in holding a meeting in accordance with Article
87, the [Commission](38) may, on the application of any officer, secretary or
member of the company, call or direct the calling of, a general meeting of the
company and give such ancillary or consequential directions as the [Commission]
thinks expedient, including directions modifying or supplementing, in relation
to the calling, holding and conduct of the meeting, the operation of the
company's articles.

     (2)    The directions that may be given under paragraph (1) include a
direction that one member of the company present in person or by proxy shall be
deemed to constitute a meeting.

     (3)    If default is made in complying with directions given under
paragraph (1), the company and any officer or secretary of it who is in default
is guilty of an offence.

     (4)    A general meeting held under this Article shall, subject to any
directions of the [Commission], be deemed to be an annual general meeting of the
company; but, where a meeting so held is not held in the year in which the
default in holding the Company's annual general meeting occurred, the meeting so
held shall not be treated as the annual general meeting for the year in which it
is held, unless at that meeting the company resolves that it shall be so
treated.

     (5)    Where a company so resolves, a copy of the resolution shall, within
21 days after it is passed, be forwarded to the registrar and recorded by him;
and if default is made in complying with this paragraph, the company is guilty
of an offence.

                                   ARTICLE 89

                            REQUISITION OF MEETINGS

     (1)    The directors of a company shall, notwithstanding anything in the
company's articles, on a members' requisition forthwith proceed to call a
general meeting or, as the case may be, a meeting of the holders of a class of
shares to be held as soon as practicable but in any case not later than two
months after the date of the deposit of the requisition.

     (2)    A members' requisition is a requisition of members of the company
holding at the date of the deposit of the requisition not less than one-tenth in
nominal value of the shares which

_______________________________

(38) The word "Commission" inserted by the Financial Services Commission
(Jersey) Law 1998, Volume 1998, page 269.

                                      50

<PAGE>

at that date carry the right of voting at the meeting requisitioned.

     (3)    The requisition shall state the objects of the meeting, and shall be
signed by or on behalf of the requisitionists and deposited at the registered
office of the company, and may consist of several documents in similar form each
signed by or on behalf of one or more requisitionists.

     (4)    If the directors do not within 21 days from the date of the deposit
of the requisition proceed duly to call a meeting to be held within two months
of that date, the requisitionists, or any of them representing more than one
half of the total voting rights of all of them, may themselves call a meeting,
but a meeting so called shall not be held after three months from that date.

     (5)    A meeting called under this Article by requisitionists shall be
called in the same manner, as nearly as possible, as that in which meetings are
to be called by directors.

     (6)    Reasonable expenses incurred by the requisitionists by reason of the
failure of the directors to call a meeting shall be repaid to the
requisitionists by the company, and sums so repaid shall be retained by the
company out of sums due or to become due from the company by way of fees or
other remunerations in respect of their services to the directors who were in
default.

     (7)    In the case of a meeting at which a resolution is to be proposed as
a special resolution the directors are deemed not to have duly called the
meeting if they do not give the notice required for special resolutions by
Article 90.

                                   ARTICLE 90

                        DEFINITION OF SPECIAL RESOLUTION

     (1)    A resolution is a special resolution when it has been passed by a
majority of not less than two-thirds of members who (being entitled to do so)
vote in person, or by proxy, at a general meeting of the company or at a
separate meeting of the holders of a class of shares in the company of which in
either case not less than 21 days' notice, specifying the intention to propose
the resolution as a special resolution, has been duly given.

     (2)    If it is so agreed by a majority in number of the members having the
right to attend and vote at such a meeting upon the resolution, being a majority
together holding not less than 95 per cent in nominal value of the shares giving
that right, a resolution may be proposed and passed as a special resolution at a
meeting of which less than 21 days' notice has been given.

     (3)    At a meeting at which a special resolution is proposed, a
declaration by the chairman that the resolution is carried is, unless a poll is
demanded, conclusive evidence of the fact without proof of the number or
proportion of the votes recorded in favour of or against the resolution.

     (4)    In computing the majority on a poll demanded on the question that a
special resolution be passed, reference is to be had to the number of votes cast
for and against the resolution.

     (5)    For the purposes of this Article, notice of a meeting shall be
deemed to be duly given and the meeting duly held, when the notice is given and
the meeting held in the manner provided by this Law or the company's articles.

     (6)    References in this Law to a special resolution are, unless otherwise
expressly provided, references to a special resolution passed at a general
meeting of the company.

                                      51

<PAGE>

                                   ARTICLE 91

                               NOTICE OF MEETINGS

     (1)    A provision of a company's articles is void insofar as it provides
for the calling of a meeting of the company or of the holders of any class of
shares in the company (other than an adjourned meeting) by a shorter notice than
-

     (a)    in the case of the annual general meeting, 21 days' notice in
            writing; and

     (b)    in the case of a meeting, other than an annual general meeting or a
            meeting for the passing of a special resolution, 14 days' notice in
            writing.

     (2)    Save insofar as the articles of a company make other provision in
that behalf (not being a provision avoided by paragraph (1), any such meeting of
the company (other than an adjourned meeting) may be called -

     (a)    in the case of the annual general meeting, by 21 days' notice in
            writing; and

     (b)    in the case of a meeting, other than an annual general meeting or a
            meeting for the passing of a special resolution, by 14 days' notice
            in writing.

     (3)    Notwithstanding that a meeting is called by shorter notice than that
specified in paragraph (2) or in the company's articles (as the case may be), it
is deemed to have been duly called if it so agreed -

     (a)    in the case of a meeting called as the annual general meeting, by
            all the members entitled to attend and vote thereat; and

     (b)    otherwise, by a majority in number of the members having a right to
            attend and vote at the meeting, being a majority together holding
            not less than 95 per cent in nominal value of the shares giving a
            right to attend and vote at the meeting.

                                   ARTICLE 92

                  GENERAL PROVISIONS AS TO MEETINGS AND VOTES

     Insofar as the memorandum or the articles of the company do not make other
provision in that behalf, the following provisions apply to any meeting of the
company or of the holders of any class of shares in the company -

     (a)    notice of any such meeting shall be given to every member entitled
            to receive it by delivering or posting it to his registered address;

     (b)    members holding not less than one-tenth in nominal value of the
            shares carrying a right to vote thereat may call any such meeting;

     (c)    at any meeting of the company two members personally present shall
            be a quorum;

     (d)    at any meeting, other than an adjourned meeting, of the holders of
            any class of shares, the quorum shall be persons holding or
            representing by proxy at least one-third in nominal value of the
            issued shares of that class and at any such adjourned meeting, one
            person holding shares of the class or his proxy shall be a quorum;

     (e)    any member elected by the members present at any such meeting may be
            chairman; and

     (f)    on a show of hands, every member present in person at any such
            meeting has one vote and on a poll, every member has one vote for
            every share held by him and, in the case of stock, one vote for each
            share from which the holding of stock arose.

                                      52

<PAGE>

                                   ARTICLE 93

                  REPRESENTATION OF BODY CORPORATE AT MEETINGS

     (1)    A body corporate, whether or not a company within the meaning of
this Law, may by resolution of its directors or other governing body authorize
such person as it thinks fit to act as its representative at any meeting of a
company, or of the holders of a class of shares of a company, or of creditors of
a company which it is entitled to attend.

     (2)    A person so authorized is entitled to exercise the same powers on
behalf of the body corporate which he represents as that body corporate could
exercise if it were an individual member or creditor of the company.

                                   ARTICLE 94

                        POWER OF COURT TO ORDER MEETINGS

     (1)    If for any reason it is impracticable to call a meeting of a
company, or of the holders of a class of shares in a company, in a manner in
which those meetings may be called, or to conduct the meeting in the manner
specified in the articles or this Law, the court may, either of its own motion
or on the application -

     (a)    of a director of the company; or

     (b)    of a member of the company who would be entitled to vote at the
            meeting, order a meeting to be called, held and conducted in any
            manner the court thinks fit.

     (2)    Where such an order is made, the court may give such ancillary or
consequential directions as it thinks expedient; and these may include a
direction that one member of the company present in person or by proxy be deemed
to constitute a meeting.

                                   ARTICLE 95

                             RESOLUTIONS IN WRITING

     (1)    Anything that may be done by a resolution (including a special
resolution but excluding a resolution removing an auditor) passed at a meeting
of a company or at a meeting of the holders of a class of shares in a company
may, subject to the memorandum and articles, be done by a resolution in writing
signed by or on behalf of each member who, at the date when the resolution is
deemed to be passed, would be entitled to vote on the resolution if it were
proposed at a meeting.

     (2)    A resolution in writing may consist of several instruments in the
same form each signed by or on behalf of one or more members.

     (3)    A resolution under this Article shall be deemed to be passed when
the instrument, or the last of several instruments, is last signed or on such
later date as is specified in the resolution.

     (4)    Any document attached to a resolution in writing under this Article
shall be deemed to have been laid before a meeting of the members signing the
resolution.

     (5)    Articles 98 and 100 apply to a resolution in writing under this
Article as if it had been passed at a meeting.

     (6)    Nothing in this Article affects or limits any rule of law relating
to the effectiveness of the assent of members, or any class of members, of a
company given to any document, act or matter otherwise than at a meeting of
them.

                                   ARTICLE 96

                                      53

<PAGE>

                                    PROXIES

     (1)    A member of a company entitled to attend and vote at a meeting of it
is entitled to appoint another person (whether a member or not) as his proxy to
attend and vote instead of him; and in the case of a private company a proxy
appointed to attend and vote instead of a member has also the same right as the
member to speak at the meeting; but, unless the articles otherwise provide, a
proxy is not entitled to vote except on a poll.

     (2)    In every notice calling a meeting of the company there shall appear
with reasonable prominence a statement that a member entitled to attend and vote
is entitled to appoint a proxy or, where that is allowed, one or more proxies to
attend and vote instead of him, and that a proxy need not also be a member.

     (3)    In the event of failure to comply with paragraph (2) as respects any
meeting, every officer of the company who is in default is guilty of an offence.

     (4)    A provision contained in a company's articles is void in so far as
it would have the effect of requiring the instrument appointing a proxy, or any
other document necessary to show the validity of, or otherwise relating to, the
appointment of a proxy, to be received by the company or any other person more
than 48 hours before a meeting or adjourned meeting in order that the
appointment may be effective.

     (5)    If for the purpose of a meeting of a company invitations to appoint
as proxy a person or one of a number of persons specified in the invitations are
issued at the company's expense to some only of the members entitled to be given
notice of the meeting and to vote at it by proxy, then every officer of the
company who knowingly and wilfully authorizes or permits their issue in that
manner is guilty of an offence; but an officer is not so liable by reason only
of the issue to a member at his request in writing of a form of appointment
naming the proxy, or a list of persons willing to act as proxy, if the form or
list is available on request in writing to every member entitled to vote at the
meeting by proxy.

     (6)    This Article applies to meetings of the holders of any class of
shares as it applies to general meetings.

                                   ARTICLE 97

                                DEMAND FOR POLL

     (1)    A provision contained in a company's articles is void in so far as
it would have the effect either -

     (a)    of excluding the right to demand a poll at a general meeting, or at
            a meeting of the holders of any class of shares, on a question other
            than the election of the chairman of the meeting or the adjournment
            of the meeting; or

     (b)    of making ineffective a demand for a poll on any such question which
            is made either -

            (i)    by not less than five members having the right to vote on the
                   question; or

            (ii)   by a member or members representing not less than one-tenth
                   of the total voting rights of all the members having the
                   right to vote on the question.

     (2)    The instrument appointing a proxy to vote at such a meeting is
deemed also to confer authority to demand or join in demanding a poll; and for
the purposes of paragraph (1) a demand by a person as proxy for a member is the
same as a demand by the member.

     (3)    On a poll taken at such a meeting, a member entitled to more than
one vote need not, if he votes, (in person or by proxy) use all his votes or
cast all the votes he uses in the same way.

                                      54

<PAGE>

                                   ARTICLE 98

                                    MINUTES

     (1)    Every company shall cause minutes of all proceedings at general
meetings, meetings of the holders of any class of its shares, meetings of its
directors and of committees of directors to be entered in books kept for that
purpose, and the names of the directors present at each such meeting shall be
recorded in the minutes.

     (2)    Any such minute, if purporting to be signed by the chairman of the
meeting at which the proceedings took place, or by the chairman of the next
succeeding meeting, is evidence of the proceedings.

     (3)    Where minutes have been made in accordance with this Article then,
until the contrary is proved, the meeting is deemed duly held and convened, and
all proceedings which took place at the meeting to have duly taken place.

     (4)    If a company fails to comply with paragraph (1), the company and
every officer of it who is in default is guilty of an offence.

                                   ARTICLE 99

                           INSPECTION OF MINUTE BOOKS

     (1)    The books containing the minutes of a general meeting or of a
meeting of the holders of a class of shares held after this Article comes into
force shall be kept at the company's registered office, and shall during
business hours be open to the inspection of a member without charge.

     (2)    A member may require, on submission to the company of a written
request and on payment of such sum (if any), not exceeding the prescribed
maximum, as the company may require, a copy of any such minutes and the company
shall, within seven days after the receipt of the request and the payment, cause
the copy so required to be made available at the registered office of the
company for collection during business hours.

     (3)    If an inspection required under this Article is refused or if a copy
required under this Article is not sent within the proper time, the company is
guilty of an offence.

     (4)    In the case of a refusal or default, the court may make an order
compelling an immediate inspection of the books in respect of all proceedings of
general meetings, or meetings of the holders of a class of shares or directing
that the copies required be furnished to the persons requiring them.

                                  ARTICLE 100

                             FILING OF RESOLUTIONS

     (1)    A printed copy of every resolution or agreement to which this
Article applies shall, within 21 days after it is passed or made, be forwarded
to the registrar and recorded by him.

     (2)    A printed copy of every such resolution or agreement for the time
being in force shall be embodied in or annexed to every copy of the memorandum
or articles issued after the passing of the resolution or the making of the
agreement; and a printed copy of every such resolution or agreement shall be
forwarded to a member at his request on payment of such sum (if any), not
exceeding the prescribed maximum, as the company may require.

     (3)    This Article applies to -

     (a)    special resolutions;

                                      55

<PAGE>

     (b)    resolutions or agreements which have been agreed to by all the
            members of a company but which, if not so agreed to, would not have
            been effective for their purpose unless they had been passed as
            special resolutions;

     (c)    resolutions or agreements which have been agreed to by all the
            holders of some class of shares but which, if not so agreed to,
            would not have been effective for their purpose unless they had been
            passed or agreed to by some particular majority or otherwise in some
            particular manner, and all resolutions or agreements which
            effectively bind all the holders of any class of shares though not
            agreed to by all those holders,

which are passed, agreed to or entered into after this Article comes into force.

     (4)    If a copy of a resolution or agreement is not delivered to the
registrar as required by paragraph (1) there shall be payable by the company
when the copy is delivered a prescribed late filing fee.

     (5)    If a company fails to comply with paragraph (2), it is guilty of an
offence.

     (6)    Save as otherwise provided by this Law, a resolution or agreement to
which this Article applies has effect notwithstanding that a copy is not
delivered to the registrar as required by paragraph (1).

                                  ARTICLE 101

                     RESOLUTION PASSED AT ADJOURNED MEETING

     Where a resolution is passed at an adjourned meeting of -

     (a)    a company; or

     (b)    the holders of any class of shares in a company; or

     (c)    the directors or a committee of directors of a company,

the resolution is for all purposes to be treated as having been passed on the
date on which it was in fact passed, and is not to be deemed passed on any
earlier date.

                                    PART XVI

                               ACCOUNTS AND AUDIT

                                  ARTICLE 102

                               ACCOUNTING RECORDS

     Every company shall keep accounting records which are sufficient to show
and explain its transactions and are such as to -

     (a)    disclose with reasonable accuracy, at any time, the financial
            position of the company at that time; and

     (b)    enable the directors to ensure that any accounts prepared by the
            company under this Part comply with the requirements of this Law.

                                  ARTICLE 103

                              RETENTION OF RECORDS

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<PAGE>

     (1)    A company's accounting records shall be kept at such place as the
directors think fit and shall at all times be open to inspection by the
company's officers and the secretary.

     (2)    If accounting records of a public company are kept at a place
outside the Island, returns with respect to the business dealt with in the
accounting records so kept shall be sent to, and kept in, the Island, shall at
all times be open to such inspection, and shall be such as to -

     (a)    disclose with reasonable accuracy the financial position of the
            business in question at intervals of not more than six months; and

     (b)    enable the directors to ensure that any accounts prepared by the
            company under this Part comply with the requirements of this Law.

     (3)    Subject to Article 194, accounting records which a company is
required by Article 102 to keep shall be preserved by it for 10 years from the
date on which they are made.

                                  ARTICLE 104

                                    ACCOUNTS

     (1)    The directors of every company shall prepare accounts for a period
of not more than 18 months beginning on the date the company was incorporated
or, if the company has previously prepared a profit and loss account, beginning
at the end of the period covered by the most recent account:

Provided that an existing company which has not prepared a profit and loss
account for a period ending within 12 months before the date on which this
Article comes into force shall not be required to prepare accounts for a period
beginning earlier than that date.

     (2)    The accounts shall be prepared in accordance with generally accepted
accounting principles and show a true and fair view of the profit or loss of the
company for the period and of the state of the company's affairs at the end of
the period and comply with any other requirements of this Law.

     (3)    A company's accounts shall be approved by the directors and signed
on their behalf by one of them.

     (4)    In the case of a public company, within seven months, and in the
case of a private company, within 10 months, after the end of the financial
period, the accounts for that period shall be -

     (a)    prepared, and where it is required under this Law, examined and
            reported upon by auditors; and

     (b)    subject in the case of a private company to paragraph (5), laid
            before a general meeting together with a copy of the auditors'
            report (if any).

     (5)    If at the end of any financial period of a company, an agreement
under paragraph (4) of Article 87 dispensing with the holding of an annual
general meeting has effect -

     (a)    the company shall not be obliged to lay the accounts for that period
            or a copy of any auditors' report before a general meeting; but

     (b)    if any member of the company, not later than 11 months after the end
            of that period, by written notice given to the company so requires,
            those accounts and a copy of any auditors' report thereon shall be
            laid before a general meeting which shall be held within 28 days
            after the receipt of the notice by the company, or after approval of
            the accounts by the directors, whichever shall last occur.

     (6)    In this Part, references to "accounts" are to those prepared in
accordance with this

                                      57

<PAGE>

Article.

                                  ARTICLE 105

                               COPIES OF ACCOUNTS

     (1)    Any member of a company who has not previously been furnished with a
copy of the company's latest accounts is entitled, on written request made by
him to the company and without charge, to be furnished with a copy of those
accounts together, where the accounts have been audited, with a copy of the
auditors' report.

     (2)    If default is made in complying with such a request within seven
days after its making, the company and every officer of it who is in default is
guilty of an offence.

                                  ARTICLE 106

                       DELIVERY OF ACCOUNTS TO REGISTRAR

     (1)    In respect of each financial period the directors of a public
company -

     (a)    shall deliver to the registrar a copy of the accounts for the period
            signed on behalf of the directors by one of them together with a
            copy of the report thereon by the auditors; and

     (b)    if any document so delivered is in a language other than English,
            shall annex to the copy of that document a translation of it into
            English, certified to be a correct translation.

     (2)    The documents referred to in paragraph (1) shall be delivered to the
registrar within seven months after the end of the financial period to which
they relate.

     (3)    Where for special reasons the [Commission](39) sees fit, it may by
notice in writing extend a period mentioned in paragraph (1), (4) or (5) of
Article 104 or in paragraph (2) of this Article by such period as is specified
in the notice.

                                  ARTICLE 107

               FAILURE TO COMPLY WITH ARTICLES 102 TO 104 OR 106

     If a company fails to comply with the provisions of Articles 102, 103, 104
or 106, [it] and (in the case of a public company) every officer of it who is in
default is guilty of an offence.

                                  ARTICLE 108

                    POWER TO MAKE REGULATIONS AS TO ACCOUNTS

     (1)    The States may by Regulations extend or modify the provisions of
this Part.

     (2)    Without prejudice to the generality of the foregoing, such
Regulations may provide for -

     (a)    the inclusion in accounts of group accounts dealing with the affairs
            of a company and its subsidiaries;

     (b)    the inclusion in accounts of a report by the directors dealing with
            such matters as may be specified;

_______________________________

(39) The word "Commission" inserted by the Financial Services Commission
(Jersey) Law 1998, (Volume 1998, page 269).

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     (c)    the accounting principles to be applied in the preparation of
            accounts;

     (d)    the appointment, remuneration, removal, resignation, rights and
            duties of auditors, and different provisions may be made for
            different cases or classes of case.

     (3)    Such Regulations may further provide for the imposition of fines in
respect of offences under the Regulations.

                                  ARTICLE 109

                      APPOINTMENT AND REMOVAL OF AUDITORS

     (1)    Where -

     (a)    a company is a public company; or

     (b)    the articles of the company so require; or

     (c)    a resolution of the company in general meeting so requires,

the company shall appoint auditors who shall examine and report in accordance
with this Law upon the accounts prepared pursuant to Article 104.

     (2)    Subject to paragraphs (4) and (5), a company which is required by
this Article to appoint auditors shall at each annual general meeting appoint
auditors to hold office from the conclusion of that meeting to the conclusion of
the next annual general meeting.

     (3)    The directors or (failing the directors) the company in general
meeting may, at any time before the first annual general meeting, appoint
auditors who shall hold office to the conclusion of that meeting.

     (4)    If a private company required by this Article to appoint auditors
dispenses with the holding of an annual general meeting pursuant to paragraph
(4) of Article 87 any auditors then in office shall continue to act and be
deemed to be re-appointed for each succeeding financial period until the
conclusion of the next annual general meeting or until the company in general
meeting resolves that the appointment of the auditors be brought to an end.

     (5)    If a private company which has dispensed as aforesaid with the
holding of an annual general meeting becomes bound to appoint auditors and there
are no auditors in office, the directors shall appoint auditors who shall
continue to act until the conclusion of the next annual general meeting.

     (6)    The directors or the company in general meeting may fill any casual
vacancy in the office of auditors and fix their remuneration.

     (7)    A company may be resolution at any time remove an auditor
notwithstanding anything in any agreement between it and him.

     (8)    Nothing in this Article is to be taken as depriving a person removed
under it of compensation or damages payable to him in respect of the termination
of his appointment as auditor.

     (9)    If a company fails to comply with paragraph (1), the company and
every officer of it who is in default is guilty of an offence.

                                  ARTICLE 110

                                AUDITORS' REPORT

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     (1)    This Article, and Articles 111 and 113, apply only to a company
which is required to appoint auditors pursuant to Article 109.

     (2)    A company's auditors shall make a report to the company's members on
the accounts examined by them.

     (3)    The auditors' report shall state whether in their opinion the
accounts have been properly prepared in accordance with this Law and in
particular whether a true and fair view is given.

                                  ARTICLE 111

                          AUDITORS' DUTIES AND POWERS

     (1)    A company's auditors shall, in preparing their report, carry out
such investigations as will enable them to form an opinion as to the following
matters -

     (a)    whether proper accounting records have been kept by the company and
            proper returns adequate for their audit have been received from
            branches not visited by them;

     (b)    whether the company's accounts are in agreement with the accounting
            records and returns.

     (2)    If the auditors are of the opinion that proper accounting records
have not been kept, or that proper returns adequate for their audit have not
been received from branches not visited by them, or if the accounts are not in
agreement with the accounting records and returns, the auditors shall state that
fact in their report.

     (3)    The auditors have a right of access at all times to the company's
records, and are entitled to require from the company's officers and the
secretary such information and explanations as they think necessary for the
performance of their duties as auditors.

     (4)    Every auditor is entitled to receive notice of, and attend, any
meeting of shareholders and to be heard on any part of the business of the
meeting which concerns the auditors.

     (5)    If the auditors fail to obtain all the information and explanations
which, to the best of their knowledge and belief, are necessary for the purposes
of their audit, they shall state that fact in their report.

     (6)    An auditor of a company may resign his office by depositing a notice
in writing to that effect together with a statement under paragraph (7) at the
company's registered office; and any such notice operates to bring his term of
office to an end on the date on which the notice is deposited, or on such later
date as may be specified in it.

     (7)    When an auditor ceases for any reason to hold office he shall
deposit at the company's registered office -

     (a)    a statement to the effect that there are no circumstances connected
            with his ceasing to hold office which he considers should be brought
            to the notice of the members or creditors of the company; or

     (b)    a statement of any circumstances as are mentioned above.

     (8)    Where a statement under paragraph (7) falls within sub-paragraph (b)
of that paragraph, the company shall within 14 days send a copy of the statement
to every member of the company and to every person entitled to receive notice of
general meetings.

     (9)    If a person ceasing to hold office as auditor fails to comply with
paragraph (7) he is guilty of an offence.

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<PAGE>

     (10)   If a company fails to comply with paragraph (8) the company and
every officer of it who is in default is guilty of an offence.

                                  ARTICLE 112

                          FALSE STATEMENTS TO AUDITORS

     Where Article 109 requires a company to appoint auditors, an officer and
the secretary of a company is guilty of an offence if he knowingly or recklessly
makes to the company's auditors a statement (whether written or oral) which -

     (a)    conveys or purports to convey any information or explanation which
            the auditors require, or are entitled to require, as auditors of the
            company; and

     (b)    is misleading, false or deceptive in a material particular.

                                ARTICLE 113(40)

                    QUALIFICATION FOR APPOINTMENT AS AUDITOR

     (1)    A person is not qualified for appointment as auditor of a company
under Article 109 unless -

     (a)    he is a member of -

            (i)    the Institute of Chartered Accountants in England and Wales,
                   or

            (ii)   the Institute of Chartered Accountants of Scotland, or

            (iii)  the Chartered Association of Certified Accountants, or

            (iv)   the Institute of Chartered Accountants in Ireland,

and is eligible for appointment under the rules of whichever of the foregoing
bodies he is a member; or

     (b)    he is for the time being authorized by the [Commission](41) to be so
            appointed.

     (2)    None of the following persons is so qualified -

     (a)    a secretary or an officer or servant of the company or a partner or
            employee of such a person; or

     (b)    a person against whom an order under Article 78 is in force.

     (3)    A person is also not so qualified if he is, under paragraph (2),
disqualified for appointment as auditor of any other body corporate which is
that company's subsidiary or holding company or a subsidiary of that company's
holding company, or would be so disqualified if the body corporate were a
company.

     (4)    No person appointed under Article 109 shall act as auditor of a
company at a time when he knows that he is disqualified for appointment to that
office; and if an auditor of a company to his knowledge becomes so disqualified
during his term of office he shall thereupon vacate his office and give notice
in writing to the company that he has vacated it by reason of that
disqualification.

_______________________________

(40) Note should be taken of the Companies (Qualifications of Auditor) (Jersey)
Order 1996, No. 8941 and the Companies (Qualifications of Auditor) (Amendment)
(Jersey) Order 1998, No. 9263.
(41) The word "Commission" inserted by the Financial Services Commission
(Jersey) Law 1998, (Volume 1998, page 269).

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<PAGE>

     (5)    Notwithstanding paragraph (1) [but subject to paragraph (5A)](42), a
partnership is so qualified if, but only if, all the partners are so qualified.

     [(5A)  A partnership which does not meet the requirements of paragraph (5)
may be a person qualified for appointment as auditor of a company subject to
such conditions as are specified in an Order made under paragraph (7).

     (5B)   A body corporate may be a person qualified for appointment as
auditor of a company subject to such conditions as are specified in an Order
made under paragraph (7)](43)

     (6)    A person who acts as auditor in contravention of paragraph (4), or
fails without reasonable excuse to give notice of vacating his office as
required by that paragraph, is guilty of an offence.

     (7)    The Committee may by Order -

     (a)    amend sub-paragraph (a) of paragraph (1) by adding, deleting or
            substituting bodies therein;

     (b)    amend paragraph (2) by adding, deleting, substituting or qualifying
            descriptions of persons therein; and

     (c)    amend this Article so as to allow, subject to such conditions as are
            specified in the Order -

            (i)    a body corporate, or

            (ii)   a partnership which does not meet the requirements of
            paragraph (5),

            to be a person qualified for appointment as auditor of a company.

     (8)    Paragraphs (4) and (6) shall not apply to an existing company until
the expiration of six months from the date on which this Article comes into
force.

                                   PART XVII

                                 DISTRIBUTIONS

                                  ARTICLE 114

                         RESTRICTIONS ON DISTRIBUTIONS

     (1)    A company shall not make a distribution except in accordance with
this Article.

     (2)    A company may make a distribution at any time -

     (a)    out of its realised profits less its realised losses;

     (b)    out of its realised revenue profits less its revenue losses, whether
            realised or unrealised, provided the directors reasonably believe
            that, immediately after the distribution has been made -

            (i)    the company will be able to discharge its liabilities as they
                   fall due, and

            (ii)   the value of the company's assets will not be less than the
                   amount of its liabilities.

_______________________________

(42) Inserted by the Companies (Qualifications of Auditor) (Jersey) Order 1996,
No. 8941.
(43)(43)

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<PAGE>

     (3)    A company may, with the sanction of a special resolution, make a
distribution out of its unrealised profits less its losses, whether realised or
unrealised, provided the directors reasonably believe that immediately after the
distribution has been made -

     (a)    the company will be able to discharge its liabilities as they fall
            due; and

     (b)    the value of the company's assets will not be less than the
            aggregate of -

            (i)    its liabilities,

            (ii)   the nominal amount of its issued shares,

            (iii)  any amount standing to the credit of its share premium
                   account, and

            (iv)   any amount standing to the credit of its capital redemption
                   reserve.

     [(3A)  Notwithstanding any other provisions of this Law, a company to which
this paragraph applies may make a distribution at any time provided the
directors reasonably believe that immediately after the distribution has been
made -

     (a)    the company will be able to discharge its liabilities as they fall
            due; and

     (b)    the value of the company's assets will not be less than the amount
            of its liabilities

and a distribution made in accordance with this paragraph shall be debited to
the capital or revenue profit and loss account.](44)

     (4)    In this Part -

     (a)    "distribution" means every description of distribution of a
            company's assets to its members in their characters of members,
            whether in cash or otherwise, except distribution by way of -

            (i)    an issue of shares as fully or partly paid bonus shares,

            (ii)   the redemption or purchase of any of the company's shares out
                   of the proceeds of a fresh issue of shares or share premium
                   account,

            (iii)  the reduction of share capital by extinguishing or reducing
                   the liability of any of the members on any of the company's
                   shares in respect of share capital not paid up, or by paying
                   off paid up share capital, and

            (iv)   a distribution of assets to members of the company on its
                   winding up.

     (b)    references to profits of any description are to accumulated profits
            of that description made at any time so far as not previously
            utilised by distribution or capitalization;

     (c)    references to losses of any description are to accumulated losses of
            that description made at any time so far as not previously written
            off in a reduction or reorganisation of capital duly made;

     (d)    references to profits and losses of any description are to profits
            and losses of that description ascertained in accordance with
            generally accepted accounting principles;

     (e)    "capitalization" means -

            (i)    applying profits in wholly or partly paying up unissued
                   shares in the

_______________________________

(44) The sub-paragraph inserted by the Companies (Amendment) (Jersey) Law, 1992
(Volume 1992-1993, page 63.

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<PAGE>

                   company to be allotted to members as fully or partly paid
                   bonus shares, or

            (ii)   transferring the profits to capital redemption reserve.

     (5)    A company shall not apply an unrealised profit in paying up
debentures.

     (6)    Where the directors of a company are, after making all reasonable
enquiries, unable to determine whether a particular profit made before the
provisions of this Article came into force is realised or unrealised, they may
treat it as realised; and where, after making such enquiries, they are unable to
determine whether a particular loss so made is realised or unrealised, they may
treat the loss as unrealised.

     [(7)   Paragraph (3A) applies to a company which-

     (a)    is an open-ended investment company; and

     (b)    holds a permit as a functionary of Group I of Part 11 of the
            Schedule to the Collective Investment Funds (Jersey) Law 1988.](45)

                                  ARTICLE 115

                     CONSEQUENCES OF UNLAWFUL DISTRIBUTION

     Where a distribution, or part of a distribution, made by a company to one
of its members is made in contravention of Article 114 and, at the time of the
distribution, he knows or has reasonable grounds for believing that it is so
made, he is liable to repay it, or that part of it, to the company or, in the
case of a distribution made otherwise than in cash, to pay the company a sum
equal to the value of the distribution, or that part, at that time.

                                   PART XVIII

                         AMALGAMATIONS AND ARRANGEMENTS

                                  ARTICLE 116

                                TAKEOVER OFFERS

     (1)    In this Part, "a takeover offer" means an offer to acquire all the
shares, or all the shares of any class or classes, in a company (other than
shares which at the date of the offer are already held by the offeror), being an
offer on terms which are the same in relation to all the shares to which the
offer relates or, where those shares include shares of different classes, in
relation to all the shares of each class.

     (2)    In paragraph (1), "shares" means shares which have been allotted on
the date of the offer but a takeover offer may include among the shares to which
it relates all or any shares that are subsequently allotted before a date
specified in or determined in accordance with the terms of the offer.

     (3)    The terms offered in relation to any shares shall for the purposes
of this Article be treated as being the same in relation to all the shares or,
as the case may be, all the shares of a class to which the offer relates
notwithstanding any variation permitted by paragraph (4).

     (4)    A variation is permitted by this paragraph where -

     (a)    the law of a country or territory outside the Island precludes the
            acceptance of an offer in the form or any of the forms specified or
            precludes it except after compliance by the offeror with conditions
            with which he is unable to comply or which he regards as unduly
            onerous; and

_______________________________

(45) Sub-paragraph inserted by Companies (Amendment) (Jersey) Law, 1992 (Volume
1992-1993, page 63).

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<PAGE>

     (b)    the variation is such that the persons by whom the acceptance of an
            offer in that form is precluded are able to accept an offer
            otherwise than in that form but of substantially equivalent value.

     (5)    The reference in paragraph (1) to shares already held by the offeror
includes a reference to shares which he has contracted to acquire but that shall
not be construed as including shares which are the subject of a contract binding
the holder to accept the offer when it is made, being a contract entered into by
the holder for nothing other than a promise by the offeror to make the offer.

     (6)    Where the terms of an offer make provision for their revision and
for acceptances on the previous terms to be treated as acceptances on the
revised terms, the revision shall not be regarded for the purposes of this Part
as the making of a fresh offer and references in this Part to the date of the
offer shall accordingly be construed as references to the date of which the
original offer was made.

     (7)    In this Part "the offeror" means, subject to Article 122, the person
making a takeover offer and "the company" means the company whose shares are the
subject of the offer.

                                  ARTICLE 117

               RIGHT OF OFFEROR TO BUY OUT MINORITY SHAREHOLDERS

     (1)    If, in a case in which a takeover offer does not relate to shares of
different classes, the offeror has by virtue of acceptances of the offer
acquired or contracted to acquire not less than nine- tenths in value of the
shares to which the offer relates he may give notice to the holder of any shares
to which the offer relates which the offeror has not acquired or contracted to
acquire that he desires to acquire those shares.

     (2)    If, in a case in which a takeover offer relates to shares of
different classes, the offeror has by virtue of acceptances of the offer
acquired or contracted to acquire not less than nine-tenths in value of the
shares of any class to which the offer relates, he may give notice to the holder
of any shares of that class which the offeror has not acquired or contracted to
acquire that he desires to acquire those shares.

     (3)    No notice shall be given under paragraph (1) or (2) unless the
offeror has acquired or contracted to acquire the shares necessary to satisfy
the minimum specified in that paragraph before the end of the period of four
months beginning with the date of the offer, and no such notice shall be given
after the end of the period of two months beginning with the date on which he
has acquired or contracted to acquire shares which satisfy that minimum.

     (4)    When the offeror gives the first notice in relation to an offer he
shall send a copy of it to the company together with a declaration by him that
the conditions for the giving of the notice are satisfied.

     (5)    Where the offeror is a body corporate (whether or not a company
within the meaning of this Law) the declaration shall be signed by a director.

     (6)    Any person who fails to send a copy of a notice or a declaration as
required by paragraph (4) or makes such a declaration for the purposes of that
paragraph knowing it to be false or without having reasonable grounds for
believing it to be true is guilty of an offence.

     (7)    If a person is charged with any offence for failing to send a copy
of a notice as required by paragraph (4) it is a defence for him to prove that
he took reasonable steps for securing compliance with that paragraph.

     (8)    Where during the period within which a takeover offer can be
accepted the offeror acquires or contracts to acquire any of the shares to which
the offer relates but otherwise than by virtue of acceptances of the offer, then
if -

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<PAGE>

     (a)    the value of that for which they are acquired or contracted to be
            acquired ("the acquisition value") does not at that time exceed the
            value of that which is receivable by an acceptor under the terms of
            the offer; or

     (b)    those terms are subsequently revised so that when the revision is
            announced the acquisition value, at the time mentioned in
            sub-paragraph (a), no longer exceeds the value of that which is
            receivable by an acceptor under those terms,

the offeror shall be treated for the purposes of this Article as having acquired
or contracted to acquire those shares by virtue of acceptances of the offer; but
in any other case those shares shall be treated as excluded from those to which
the offer relates.

                                  ARTICLE 118

                       EFFECT OF NOTICE UNDER ARTICLE 117

     (1)    The following provisions shall, subject to Article 121, have effect
where a notice is given in respect of any shares under Article 117.

     (2)    The offeror shall be entitled and bound to acquire those shares on
the terms of the offer.

     (3)    Where the terms of an offer are such as to give the holder of any
shares a choice of payment for his shares the notice shall give particulars of
the choice and state -

     (a)    that the holder of the shares may within six weeks from the date of
            the notice indicate his choice by a written communication sent to
            the offeror at an address specified in the notice; and

     (b)    which payment specified in the offer is to be taken as applying in
            default of his indicating a choice as aforesaid,

and the terms of the offer mentioned in paragraph (2) shall be determined
accordingly.

     (4)    Paragraph (3) applies whether or not any time-limit or other
conditions applicable to the choice under the terms of the offer can still be
complied with; and if the payment chosen by the holder of the shares -

     (a)    is not cash and the offeror is no longer able to make that payment;
            or

     (b)    was to have been made by a third party who is no longer bound or
            able to make that payment,

the payment shall be taken to consist of an amount of cash payable by the
offeror which at the date of the notice is equivalent to the chosen payment.

     (5)    At the end of six weeks from the date of the notice the offeror
shall forthwith -

     (a)    send a copy of the notice to the company, and

     (b)    make payment to the company for the shares to which the notice
            relates.

     (6)    The copy of the notice sent to the company under sub-paragraph (a)
of paragraph (5) shall be accompanied by an instrument of transfer executed on
behalf of the shareholder by a person appointed by the offeror; and on receipt
of that instrument the company shall register the offeror as the holder of those
shares.

     (7)    Where the payment referred to in sub-paragraph (b) of paragraph (5)
is to be made in shares or securities to be allotted by the offeror the
reference in that paragraph to the making of

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<PAGE>

payment shall be construed as a reference to the allotment of the shares or
securities to the company.

     (8)    Any sum received by a company under sub-paragraph (b) of paragraph
(5) and any other payment received under that paragraph shall be held by the
company on trust for the person entitled to the shares in respect of which the
sum or other payment was received.

     (9)    Any sum received by a company under sub-paragraph (b) of paragraph
(5) and any dividend or other sum accruing from any other payment received by a
company under that paragraph, shall be paid into a separate bank account, being
an account the balance on which bears interest at an appropriate rate and can be
withdrawn by such notice (if any) as is appropriate.

     (10)   Where after reasonable enquiry made at such intervals as are
reasonable the person entitled to any sum or other payment held on trust by
virtue of paragraph (8) cannot be found and 10 years have elapsed since the sum
or other payment was received or the company is wound up, the sum or other
payment (together with any interest, dividend or other benefit that has accrued
from it) shall be paid to the Viscount.

     (11)   The expenses of any such enquiry as is mentioned in paragraph (10)
may be defrayed out of the money or other property held on trust for the person
or persons to whom the enquiry relates.

                                  ARTICLE 119

           RIGHT OF MINORITY SHAREHOLDER TO BE BOUGHT OUT BY OFFEROR

     (1)    If a takeover offer relates to all the shares in a company and at
any time before the end of the period within which the offer can be accepted -

     (a)    the offeror has by virtue of acceptances of the offer acquired or
            contracted to acquire some (but not all) of the shares to which the
            offer relates; and

     (b)    those shares, with or without any other shares in the company which
            he has acquired or contracted to acquire, amount to not less than
            nine-tenths in value of all the shares in the company,

the holder of any shares to which the offer relates who has not accepted the
offer may by a written communication addressed to the offeror require him to
acquire those shares.

     (2)    If a takeover offer relates to shares of any class or classes and at
any time before the end of the period within which the offer can be accepted -

     (a)    the offeror has by virtue of acceptances of the offer acquired or
            contracted to acquire some (but not all) of the shares of any class
            to which the offer relates; and

     (b)    those shares, with or without any other shares of that class which
            he has acquired or contracted to acquire, amount to not less than
            nine-tenths in value of all the shares of that class,

the holder of any shares of that class who has not accepted the offer may by a
written communication addressed to the offeror require him to acquire those
shares.

     (3)    Within one month of the time specified in paragraph (1) or, as the
case may be, paragraph (2) the offeror shall give any shareholder who has not
accepted the offer notice of the rights that are exercisable by him under that
paragraph; and if the notice is given before the end of the period mentioned in
that paragraph it shall state that the offer is still open for acceptance.

     (4)    A notice under paragraph (3) may specify a period for the exercise
of the rights, conferred by this Article and in that event the rights shall not
be exercisable after the end of that period; but no such period shall end less
than three months after the end of the period within which

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<PAGE>

the offer can be accepted.

     (5)    Paragraph (3) does not apply if the offeror has given the
shareholder a notice in respect of the shares in question under Article 117.

     (6)    If the offeror fails to comply with paragraph (3) he and, if the
offeror is a company, every officer of the company who is in default or to whose
neglect the failure is attributable, is guilty of an offence.

     (7)    If an offeror other than a company is charged with an offence for
failing to comply with paragraph (3) it is a defence for him to prove that he
took all reasonable steps for securing compliance with that paragraph.

                                  ARTICLE 120

                    EFFECT OF REQUIREMENT UNDER ARTICLE 119

     (1)    The following provisions shall subject to Article 121, have effect
where a shareholder exercises his rights in respect of any shares under Article
119.

     (2)    The offeror shall be entitled and bound to acquire those shares on
the terms of the offer or on such other terms as may be agreed.

     (3)    Where the terms of an offer are such as to give the holder of shares
a choice of payment for his shares the holder of the shares may indicate his
choice when requiring the offeror to acquire them and the notice given to the
holder under paragraph (3) of Article 119 -

     (a)    shall give particulars of the choice and of the rights conferred by
            this paragraph; and

     (b)    may state which payment specified in the offer is to be taken as
            applying in default of his indicating a choice,

and the terms of the offer mentioned in paragraph (2) shall be determined
accordingly.

     (4)    Paragraph (3) applies whether or not any time limit or other
conditions applicable to the choice under the terms of the offer can still be
complied with; and if the payment chosen by the holder of the shares -

     (a)    is not cash and the offeror is no longer able to make that payment;
            or

     (b)    was to have been made by a third party who is no longer bound or
            able to make that payment,

the payment shall be taken to consist of an amount of cash payable by the
offeror which at the date when the holder of the shares requires the offeror to
acquire them is equivalent to the chosen payment.

                                  ARTICLE 121

                           APPLICATIONS TO THE COURT

     (1)    Where a notice is given under Article 117 to the holder of any
shares the court may, on an application made by him within six weeks from the
date on which the notice was given -

     (a)    order that the offeror shall not be entitled and bound to acquire
            the shares; or

     (b)    specify terms of acquisition different from those of the offer.

     (2)    If an application to the court under paragraph (1) is pending at the
end of the period mentioned in paragraph (5) of Article 118 that paragraph shall
not have effect until the application

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has been disposed of.

     (3)    Where the holder of any shares exercises his rights under Article
119 the court may, on an application made by him or the offeror, order that the
terms on which the offeror is entitled and bound to acquire the shares shall be
such as the court thinks fit.

     (4)    No order for costs or expenses shall be made against a shareholder
making an application under paragraph (1) or (3) unless the court considers -

     (a)    that the application was unnecessary, improper or vexatious; or

     (b)    that there has been unreasonable delay in making the application or
            unreasonable conduct on his part in conducting the proceedings on
            the application.

     (5)    Where a takeover offer has not been accepted to the extent necessary
for entitling the offeror to give notices under paragraph (1) or (2) of Article
117 the court may, on the application of the offeror, make an order authorizing
him to give notices under that Article if satisfied -

     (a)    that the offeror has after reasonable enquiry been unable to trace
            one or more of the persons holding shares to which the offer
            relates;

     (b)    that the shares which the offeror has acquired or contracted to
            acquire by virtue of acceptances of the offer, together with the
            shares held by the person or persons mentioned in sub-paragraph (a),
            amount to not less than the minimum specified in that Article; and

     (c)    that the terms offered are fair and reasonable;

but the court shall not make an order under this paragraph unless it considers
that it is just and equitable to do so having regard, in particular, to the
number of shareholders who have been traced but who have not accepted the offer.

                                  ARTICLE 122

                                  JOINT OFFERS

     (1)    A takeover offer may be made by two or more persons jointly and in
that event this Part has effect with the following modifications.

     (2)    The conditions for the exercise of the rights conferred by Articles
117 and 119 shall be satisfied by the joint offerors acquiring or contracting to
acquire the necessary shares jointly (as respects acquisitions by virtue of
acceptances of the offer) and either jointly or separately (in other cases); and
subject to the following provisions, the rights and obligations of the offeror
under those Articles and Articles 118 and 120 shall be respectively joint rights
and joint and several obligations of the joint offerors.

     (3)    It shall be a sufficient compliance with any provision of those
Articles requiring or authorizing a notice or other document to be given or sent
by or to the joint offerors that it is given or sent by or to any of them; but
the declaration required by paragraph (4) of Article 117 shall be made by all of
them and, in the case of a joint offeror being a company, signed by a director
of that company.

     (4)    In Article 116, paragraph (7) of Article 123 references to the
offeror shall be construed as references to the joint offerors or any of them.

     (5)    In paragraph (6) of Article 118 references to the offeror shall be
construed as references to the joint offerors or such of them as they may
determine.

     (6)    In sub-paragraph (a) of paragraph (4) of Article 118 and
sub-paragraph (a) of

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<PAGE>

paragraph (4) of Article 120 references to the offeror being no longer able to
make the relevant payment shall be construed as references to none of the joint
offerors being able to do so.

     (7)    In Article 121 references to the offeror shall be construed as
references to the joint offerors except that any application under paragraph (3)
or (5) may be made by any of them and the reference in sub-paragraph (a) of
paragraph (5) to the offeror having been unable to trace one or more of the
persons holding shares shall be construed as a reference to none of the offerors
having been able to do so.

                                  ARTICLE 123

                                   ASSOCIATES

     (1)    The requirement in paragraph (1) of Article 116 that a takeover
offer must extend to all the shares, or all the shares of any class or classes,
in a company shall be regarded as satisfied notwithstanding that the offer does
not extend to shares which associates of the offeror hold or have contracted to
acquire; but, subject to paragraph (2), shares which any such associate holds or
has contracted to acquire, whether at the time when the offer is made or
subsequently, shall be disregarded for the purposes of any reference in this
Part to the shares to which a takeover offer relates.

     (2)    Where during the period within which a takeover offer can be
accepted any associate of the offeror acquires or contracts to acquire any of
the shares to which the offer relates, then, if the condition specified in
sub-paragraph (a) or (b) of paragraph (8) of Article 117 is satisfied as
respects those shares they shall be treated for the purpose of that Article as
shares to which the offer relates.

     (3)    In sub-paragraph (b) of paragraph (1) and sub-paragraph (b) of
paragraph (2) of Article 119 the reference to shares which the offeror has
acquired or contracted to acquire shall include a reference to shares which any
associate of his has acquired or contracted to acquire.

     (4)    In this Article, "associate", in relation to an offeror, means -

     (a)    a nominee of the offeror;

     (b)    a holding company, subsidiary or fellow subsidiary of the offeror or
            a nominee of such a holding company, subsidiary or fellow
            subsidiary;

     (c)    a body corporate in which the offeror is substantially interested.

     (5)    For the purposes of sub-paragraph (b) of paragraph (4) a company is
a fellow subsidiary of another body corporate if both are subsidiaries of the
same body corporate but neither is a subsidiary of the other.

     (6)    For the purposes of sub-paragraph (c) of paragraph (4) an offeror
has a substantial interest in a body corporate if -

     (a)    that body or its directors are accustomed to act in accordance with
            his directions or instructions; or

     (b)    he is entitled to exercise or control the exercise of one-third or
            more of the voting power at general meetings of that body.

     (7)    Where the offeror is an individual his associates shall also include
his spouse and any minor child or step-child of his.

                                  ARTICLE 124

                             CONVERTIBLE SECURITIES

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<PAGE>

     (1)    For the purposes of this Part, securities of a company shall be
treated as shares in the company if they are convertible into or entitle the
holder to subscribe for such shares; and references to the holder of shares or a
shareholder shall be construed accordingly.

     (2)    Paragraph (1) shall not be construed as requiring any securities to
be treated -

     (a)    as shares of the same class as those into which they are convertible
            or for which the holder is entitled to subscribe; or

     (b)    as shares of the same class as other securities by reason only that
            the shares into which they are convertible or for which the holder
            is entitled to subscribe are of the same class.

                                  ARTICLE 125

           POWER OF COMPANY TO COMPROMISE WITH CREDITORS AND MEMBERS

     (1)    Where a compromise or arrangement is proposed between a company and
its creditors, or a class of them, or between the company and its members, or a
class of them, the court may on the application of the company or a creditor or
member of it or, in the case of a company being wound up, of the liquidator,
order a meeting of the creditors or class of creditors, or of the members of the
company or class of members (as the case may be), to be called in a manner as
the court directs.

     (2)    If a majority in number representing three-quarters in value of the
creditors or class of creditors, or members or class of members, present and
voting either in person or by proxy at the meeting, agree to a compromise or
arrangement, the compromise or arrangement, if sanctioned by the court, is
binding on all creditors or the class of creditors or on the members or class of
members, and also on the company or, in the case of a company in the course of
being wound up, on the liquidator and contributories of the company.

     (3)    The court's order under paragraph (2) has no effect until the
relevant Act of the court has been delivered to the registrar for registration;
and the relevant Act of the court shall be annexed to every copy of the
company's memorandum issued after the order has been made.

     (4)    If a company fails to comply with paragraph (3), it is guilty of an
offence.

     (5)    In this Article and Article 126, "arrangement" includes a
reorganisation of the company's share capital by the consolidation of shares of
different classes or by the division of shares into shares of different classes,
or by both of those methods.

                                  ARTICLE 126

                 INFORMATION AS TO COMPROMISE TO BE CIRCULATED

     (1)    This Article applies where a meeting of creditors or a class of
creditors, or of members or a class of members, is called under Article 125.

     (2)    With the notice calling the meeting which is given to a creditor or
member there shall be included a statement explaining the effect of the
compromise or arrangement and in particular stating any material interests of
the directors of the company (whether as directors or as members or as creditors
of the company or otherwise) and the effect on those interests of the compromise
or arrangement, in so far as it is different from the effect on the same
interests of other persons.

     (3)    In every notice calling the meeting which is given by advertisement
there shall be included either a statement mentioned in paragraph (2) or a
notification of the place at which, and the manner in which, creditors or
members entitled to attend the meeting may obtain copies of the statement.

                                      71

<PAGE>

     (4)    Where the compromise or arrangement affects the rights of debenture
holders of the company, the statement shall give the same explanation as
respects the trustees of a deed for securing the issue of the debentures as it
is required to give as respects the company's directors.

     (5)    Where a notice given by advertisement includes a notification that
copies of a statement explaining the effect of the compromise or arrangement
proposed can be obtained by creditors or members entitled to attend the meeting,
every such creditor or member shall, on making application in the manner
indicated by the notice, be furnished by the company free of charge with a copy
of the statement.

     (6)    If a company fails to comply with a requirement of this Article the
company and every officer of it who is in default is guilty of an offence; and
for this purpose a trustee of a deed for securing the issue of debentures of the
company is deemed an officer of it; but a person is not liable under this
paragraph if he shows that the default was due to the refusal of another person,
being a director or trustee for debenture holders, to supply the necessary
particulars of his interests.

     (7)    A director of the company, and a trustee for its debenture holders,
shall give notice to the company of such matters relating to himself as may be
necessary for the purposes of this Article; and a person who defaults in
complying with this paragraph is guilty of an offence.

                                  ARTICLE 127

       PROVISIONS FOR FACILITATING COMPANY RECONSTRUCTION OR AMALGAMATION

     (1)    This Article applies where application is made to the court under
Article 125 for the sanctioning of a compromise or arrangement proposed between
a company and any persons mentioned in that Article.

     (2)    If it is shown -

     (a)    that the compromise or arrangement has been proposed for the
            purposes of, or in connexion with, a scheme for the reconstruction
            of a company or companies, or the amalgamation of two or more
            companies; and

     (b)    that under the scheme the whole or part of the undertaking or the
            property of a company concerned in the scheme ("a transferor
            company") is to be transferred to another company ("the transferee
            company"),

     the court may, either by the order sanctioning the compromise or
     arrangement or by a subsequent order, make provision for all or any of the
     following matters -

     (i)    the transfer to the transferee company of the whole or part of the
            undertaking and of the property or liabilities of a transferor
            company,

     (ii)   the allotting or appropriation by the transferee company of shares,
            debentures, policies or other similar interests in that company
            which under the compromise or arrangement are to be allotted or
            appropriated by the company to or for any person,

     (iii)  the continuation by or against the transferee company of legal
            proceedings pending by or against a transferor company,

     (iv)   the dissolution, without winding up, of a transferor company,

     (v)    the provision to be made for persons who, within a time and in a
            manner which the court directs, dissent from the compromise or
            arrangement,

     (vi)   such incidental consequential and supplemental matters as are
     necessary to secure that the reconstruction or amalgamation is fully and
     effectively carried out.

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<PAGE>

     (3)    If an order under this Article provides for the transfer of property
            or liabilities, then

     (a)    that property is by virtue of the order transferred to, and vests
            in, the transferee company, and

     (b)    those liabilities are, by virtue of the order, transferred to and
            become liabilities of that company,

and property (if the order so directs) vests freed from any hypothec, security
interest or other charge which is by virtue of the compromise or arrangement to
cease to have effect.

     (4)    Where an order is made under this Article, every company in relation
to which the order is made shall cause the relevant Act of the court to be
delivered to the registrar for registration within 14 days after the making of
the order; and in the event of failure to comply with this paragraph, the
company is guilty of an offence.

     (5)    In this Article, "property" includes property, rights and powers of
every description and "liabilities" includes duties.

                                    PART XIX

                                 INVESTIGATIONS

                                  ARTICLE 128

                     APPOINTMENT OF INSPECTORS BY COMMITTEE

     (1)    The Committee [or the Commission](46), on being satisfied that there
is good reason to do so, may appoint one or more competent inspectors to
investigate the affairs of a company and to report on them as the Committee [or
the Commission] may direct.

     (2)    The appointment may be made on the application of the registrar, the
company or a member, officer or creditor of the company.

     (3)    The Committee [or the Commission] may, before appointing inspectors,
require the applicant, other than the registrar, to give security, to an amount
not exceeding [pound]5,000 or such other sum as may be prescribed for payment of
the costs of the investigation.

     (4)    This Article applies whether or not the company is being wound up.

     [(5)   In any case where the Committee or the Commission may exercise a
discretion under this Article, the decision of the Committee shall prevail.](47)

                                  ARTICLE 129

                              POWERS OF INSPECTORS

     (1)    If inspectors appointed under Article 128 to investigate the affairs
of a company think it necessary for the purposes of their investigation to
investigate also the affairs of another body corporate which is or at any
relevant time has been the company's subsidiary or holding company, or a
subsidiary of its holding company or a holding company of its subsidiary, they
shall have power to do so; and they shall report on the affairs of the other
body corporate so far as they think that the results of their investigation of
its affairs are relevant to the investigation of the affairs of the first
mentioned company.

     (2)    Inspectors so appointed may at any time in the course of their
investigation, without

_______________________________

(46) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 269.
(47) Sub-paragraph inserted by the Financial Services Commission (Jersey) Law
1998, Volume 1998, page 270.

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<PAGE>

the necessity of making an interim report, inform the Committee [or the
Commission as the case may be](48) and the Attorney-General of matters coming to
their knowledge as a result of the investigation tending to show that an offence
has been committed.

                                  ARTICLE 130

                PRODUCTION OF RECORDS AND EVIDENCE TO INSPECTORS

     (1)    If inspectors appointed under Article 128 consider that any person
is or may be in possession of information relating to a matter which they
believe to be relevant to the investigation, they may require him -

     (a)    to produce and make available to them all records in his custody or
            power relating to that matter;

     (b)    at reasonable times and on reasonable notice, to attend before them;
            and

     (c)    otherwise to give them all assistance in connexion with the
            investigation which he is reasonably able to give,

and it is that person's duty to comply with the requirement.

     (2)    Inspectors may for the purposes of the investigation examine on oath
any such person as is mentioned in paragraph (1), and may administer an oath
accordingly.

     (3)    An answer given by a person to a question put to him in exercise of
the powers conferred by this Article may be used in evidence against him.

                                  ARTICLE 131

            POWER OF INSPECTORS TO CALL FOR DIRECTORS' BANK ACCOUNTS

     If inspectors appointed under Article 128 have reasonable grounds for
believing that a director, or past director, of the company or other body
corporate whose affairs they are investigating maintains or has maintained a
bank account of any description, whether alone or jointly with another person
and whether in the Island or elsewhere, into or out of which there has been paid
money which has been in any way connected with an act or omission, or series of
acts or omissions, which constitutes misconduct (whether fraudulent or not) on
the part of that director towards the company or other body corporate or its
members, the inspectors may require the director to produce and make available
to them all records in the director's possession or under his control relating
to that bank account.

                                  ARTICLE 132

                              AUTHORITY FOR SEARCH

     (1)    Inspectors appointed under Article 128 may for the purpose of an
investigation under that Article apply to the Bailiff for a warrant under this
Article in relation to specified premises.

     (2)    If the Bailiff is satisfied that the conditions in paragraph (3) are
fulfilled he may issue a warrant authorizing a police officer and any other
person named in the warrant to enter the specified premises (using such force as
is reasonably necessary for the purpose) and to search them.

     (3)    The conditions referred to in paragraph (2) are -

     (a)    that there are reasonable grounds for suspecting that there is on
            the premises material (whether or not it can be particularised)
            which is likely to be of substantial

_______________________________

(48) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 270.

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<PAGE>

            value (whether by itself or together with other material) to the
            investigation for the purpose of which the application is made; and

     (b)    that the investigation for the purposes of which the application is
            made might be seriously prejudiced unless immediate entry can be
            secured to the premises.

     (4)    Where a person has entered premises in the execution of a warrant
issued under this Article, he may seize and retain any material, other than
items subject to legal professional privilege, which is likely to be of
substantial value (whether by itself or together with other material) to the
investigation for the purpose of which the warrant was issued.

     (5)    In this Article, "premises" includes any place and, in particular,
includes -

     (a)    any vehicle, vessel, aircraft or hovercraft;

     (b)    any offshore installation; and

     (c)    any tent or movable structure.

                                  ARTICLE 133

                                  OBSTRUCTION

     Any person who wilfully obstructs any person acting in the execution of a
warrant issued under Article 132 is guilty of an offence.

                                  ARTICLE 134

                     FAILURE TO CO-OPERATE WITH INSPECTORS

     (1)    If any person -

     (a)    fails to comply with a requirement under Article 130 or 131; or

     (b)    refuses to answer any question put to him by the inspectors for the
            purpose of the investigation,

the inspectors may certify the refusal in writing to the court.

     (2)    The court may thereupon inquire into the case and, after hearing any
witness who may be produced against or on behalf of the alleged offender and any
statement in defence, the court may punish the offender as if he bad been guilty
of contempt of the court.

                                  ARTICLE 135

                              INSPECTORS' REPORTS

[(1) The inspectors may, and if so directed by the Committee or the Commission
shall, -

     (a)    make interim reports; and

     (b)    on conclusion of their investigation make a final report,

to the Committee or the Commission as the case may be.](49)

     (2)    The Committee [or the Commission](50) may -

_______________________________

(49) Substitution by the Financial Services Commission (Jersey) Law 1998, Volume
1998, page 270.
(50) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 269.

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<PAGE>

     (a)    forward a copy of any report made by the inspectors to the company's
            registered office;

     (b)    furnish a copy on request and on payment of the prescribed fee to -

            (i)    any member of the company or other body corporate which is
                   the subject of the report,

            (ii)   any person whose conduct is referred to in the report,

            (iii)  the auditors of the company or that body corporate,

            (iv)   the applicants for the investigation,

            (v)    any other person whose financial interests appear to the
                   Committee [or the Commission] to be affected by the matters
                   dealt with in the report, whether as a creditor of the
                   company or body corporate, or otherwise; and

     (c)    cause the report to be printed and published.

                                  ARTICLE 136

          POWER TO BRING CIVIL PROCEEDINGS ON BEHALF OF BODY CORPORATE

     (1)    If, from any report made or information obtained under this Part, it
appears to the Committee [or the Commission](51) that civil proceedings ought in
the public interest to be brought by a body corporate, the Committee [or the
Commission] may itself bring those proceedings in the name and on behalf of the
body corporate.

     (2)    The Committee [or the Commission] shall at the expense of the States
[or the Commission as appropriate](52) indemnify the body corporate against any
costs or expenses incurred by it in or in connexion with proceedings brought
under this Article.

     [(3)   In any case where the Committee or the Commission may exercise a
discretion under this Article, the decision of the Committee shall prevail.](53)

                                  ARTICLE 137

                 EXPENSES OF INVESTIGATING A COMPANY'S AFFAIRS

     (1)    The expenses of and incidental to an investigation by inspectors
shall be defrayed in the first instance by the Committee [or the
Commission](54), but the following are liable to make repayment to the Committee
[or the Commission] to the extent specified -

     (a)    a person who -

            (i)    is convicted in proceedings on a prosecution instituted as a
                   result of the investigation, or

            (ii)   is ordered to pay the whole or any part of the proceedings
                   brought under Article 136,

     may in the same proceedings be ordered to pay those expenses to the extent
     specified in the order;

_______________________________

(51) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 269.
(52) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 270.
(53) Sub-paragraph inserted by the Financial Services Commission (Jersey) Law
1998, Volume 1998, pages 270 and 271.
(54) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 269.

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<PAGE>

     (b)    a body corporate in whose name proceedings are brought under that
            Article is liable to the amount or value of any sums or property
            recovered by it as a result of those proceedings;

     (c)    a body corporate which has been the subject of the investigation is
            liable except so far as the Committee [or the Commission] otherwise
            directs; and

     (d)    the applicant or applicants for the investigation (other than the
            registrar), is or are liable to the extent (if any) which the
            Committee [or the Commission] may direct.

     (2)    For the purposes of this Article, costs or expenses incurred by the
Committee [or the Commission] in or in connexion with proceedings brought under
Article 136 (including expenses incurred under paragraph (2) of it) are to be
treated as expenses of the investigation giving rise to the proceedings.

     (3)    A liability to repay the Committee [or the Commission] imposed by
sub-paragraph (a) or (b) of paragraph (1) is (subject to satisfaction of its
right to repayment) a liability also to indemnify all persons against liability
under sub-paragraph (c) or (d) of that paragraph; and a liability imposed by
sub-paragraph (a) is (subject as mentioned above) a liability also to indemnify
all persons against liability under sub-paragraph (b).

     (4)    A person liable under paragraph (1) is entitled to a contribution
from any other person liable under the same paragraph according to the amount of
their respective liabilities under it.

     (5)    Expenses to be defrayed by the Committee [or the Commission] under
this Article shall, so far as not recovered under it, be paid out of money
provided by the States [or the Commission as appropriate](55).

     (6)    There shall be treated as expenses of the investigation, in
particular, such reasonable sums as the Committee [or the Commission] may
determine in respect of general staff costs and overheads.

                                  ARTICLE 138

                       INSPECTORS' REPORT TO BE EVIDENCE

     (1)    A copy of a report of inspectors certified by the Committee [or the
Commission](56) to be a true copy, is admissible in legal proceedings as
evidence of the opinion of the inspectors in relation to a matter contained in
the report.

     (2)    A document purporting to be a certificate mentioned in paragraph (1)
shall be received in evidence and be deemed to be such a certificate unless the
contrary is proved.

                                  ARTICLE 139

                             PRIVILEGED INFORMATION

     Nothing in this Part requires the disclosure or production[, to the
Commission or to the Committee or to an inspector appointed by the Committee or
the Commission](57) -

     (a)    by a person of information or records which he would in an action in
            the court be entitled to refuse to disclose or produce on the
            grounds of legal professional privilege in proceedings in the court
            except, if he is a lawyer, the name and address of his client;

_______________________________

(55) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 270.
(56) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 270.
(57) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 271.

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<PAGE>

     (b)    by a company's bankers (as such) of information or records relating
            to the affairs of any of their customers other than the company or
            other body corporate under investigation.

                                  ARTICLE 140

                      INVESTIGATION OF EXTERNAL COMPANIES

     This Part applies to external companies and to bodies corporate which have
at any time been external companies as if they were companies under this Law,
but subject to such adaptations and modifications as may be specified in
Regulations made by the States.

                                    PART XX

                                UNFAIR PREJUDICE

                                  ARTICLE 141

                       POWER FOR MEMBER TO APPLY TO COURT

     (1)    A member of a company may apply to the court for an order under
Article 143 on the ground that the company's affairs are being or have been
conducted in a manner which is unfairly prejudicial to the interests of its
members generally or of some part of its members (including at least himself) or
that an actual or proposed act or omission of the company (including an act or
omission on its behalf) is or would be so prejudicial.

     (2)    The provisions of this Article and Articles 142 and 143 apply to a
person who is not a member of a company but to whom shares in the company have
been transferred or transmitted by operation of law, as those provisions apply
to a member of the company; and references to a member or members are to be
construed accordingly.

                                  ARTICLE 142

                     POWER FOR COMMITTEE TO APPLY TO COURT

     (1)    If in the case of a company -

     (a)    the Committee [or the Commission](58) has received a report under
            Article 135; and

     (b)    it appears to the Committee [or the Commission] that the company's
            affairs are being or have been conducted in a manner which is
            unfairly prejudicial to the interests of its members generally or of
            some part of its members, or that an actual or proposed act or
            omission of the company (including an act or omission on its behalf)
            is or would be so prejudicial,

the Committee [or the Commission] may apply to the court for an order under
Article 143.

     [(2)   In any case where the Committee or the Commission may exercise a
discretion under this Article, the decision of the Committee shall prevail.](59)

                                  ARTICLE 143

                                POWERS OF COURT

     (1)    If the court is satisfied that an application under Article 141 or
142 is well founded, it may make such order as it thinks fit for giving relief
in respect of the matters complained of.

_______________________________

(58) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 270.
(59) Sub-paragraph inserted by the Financial Services Commission (Jersey) Law
1998, Volume 1998, page 271.

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<PAGE>

     (2)    Without prejudice to the generality of paragraph (1), the court's
order may -

     (a)    regulate the conduct of the company's affairs in the future;

     (b)    require the company to refrain from doing or continuing an act
            complained of by the applicant or to do an act which the applicant
            has complained it has omitted to do;

     (c)    authorize civil proceedings to be brought in the name and on behalf
            of the company by such person or persons and on such terms as the
            court may direct;

     (d)    provide for the purchase of the shares of any members of the company
            by other members or by the company itself and, in the case of a
            purchase by the company itself, the reduction of the company's
            capital accordingly.

     (3)    If an order under this Article requires the company not to make any,
or any specified, alterations in the memorandum or articles, the company shall
not then without leave of the court make such alterations in breach of that
requirement.

     (4)    An alteration in the company's memorandum or articles made by virtue
of an order under this Article is of the same effect as if duly made by
resolution of the company, and the provisions of this Law apply to the
memorandum or articles as so altered accordingly.

     (5)    The Act of the court recording the making of an order under this
Article altering, or giving leave to alter, a company's memorandum or articles
shall, within 14 days from the making of the order or such longer period as the
court may allow, be delivered by the company to the registrar for registration,
and if a company fails to comply with this paragraph, the company is guilty of
an offence.

                                    PART XXI

                            WINDING UP OF COMPANIES

            [CHAPTER 1 - WINDING UP OF COMPANIES OF LIMITED DURATION

                                  ARTICLE 144

                PROCEDURE - WINDING UP OF LIMITED LIFE COMPANIES

     (1)    Where a limited life company is to be wound up and dissolved upon -

     (a)    the expiration of a fixed period of time; or

     (b)    the happening of some other event.

specified in the memorandum or articles, and the period expires or the other
event happens, the company shall thereupon be deemed to pass a special
resolution for its winding up summarily.

     (2)    Within 21 days thereafter, a notice of the resolution so deemed to
be passed shall be delivered to the registrar.

     (3)    If a statement of solvency is made in accordance with paragraph (2)
of Article 146 within 28 days after the event referred to in paragraph (1), and
is delivered to the registrar within 21 days after it is made, the limited life
company shall continue to be wound up summarily in accordance with Chapter 2 of
this Part.

     (4)    If a statement of solvency is not delivered to the registrar in
accordance with paragraph (3), the limited life company shall be wound up in a
creditors winding up in accordance with Chapter 4 of this Part and for that
purpose Article 151 shall apply as though the opinion referred to in that
Article had been recorded at the expiration of 28 days after the happening of
the

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event referred to in paragraph (1).

                                  ARTICLE 144A

         PROCEDURE - WINDING UP OF OTHER COMPANIES OF LIMITED DURATION

     (1)    Where a company (other than a limited life company) is to be wound
up and dissolved upon the expiration of a fixed period of time specified in its
memorandum or articles, and the period expires, the company shall deliver to the
registrar within 21 days after that period has expired a notice stating -

     (a)    that the period has expired; and

     (b)    the date of expiration.

     (2)    If a company fails to comply with paragraph (1), any director,
member or creditor of the company may, at any time after the expiration of the
period of 21 days referred to in paragraph (1), deliver such a notice to the
registrar.

     (3)    Where a notice is delivered to the registrar in accordance with
paragraph (2), the director, member or creditor shall at the same time deliver a
copy of the notice to the company.

     (4)    If a statement of solvency in accordance with paragraph (2) of
Article 146 -

     (a)    has been made within 28 days before and is delivered to the
            registrar with a notice delivered in accordance with paragraph (1);
            or

     (b)    has been made and is delivered to the registrar within 28 days after
            a notice is delivered in accordance with paragraph (2),

the company shall be wound up summarily in accordance with Chapter 2 of this
Part.

     (5)    If, notice having been delivered in accordance with paragraph (1) or
paragraph (2), a statement of solvency is not made and delivered to the
registrar as provided in paragraph (4), the company shall be wound up in a
creditors' winding up in accordance with Chapter 4 of this Part and for that
purpose the company shall be deemed to pass a resolution for a creditors'
winding up -

     (a)    where notice is delivered in accordance with paragraph (1), upon
            delivery of the notice to the registrar; and

     (b)    where notice is delivered in accordance with paragraph (2), upon the
            expiration of 28 days after the copy of the notice is delivered to
            the company.](60)

                         CHAPTER 2 - SUMMARY WINDING UP

                                  ARTICLE 145

                          APPLICATION OF THIS CHAPTER

     This Chapter applies to the winding up of a company which has no
liabilities or which is able to discharge its liabilities in full within six
months after the commencement of the winding up and such a winding up is a
summary winding up.

                                  ARTICLE 146

                                   PROCEDURE

_______________________________

(60) Substitution by Companies (Amendment No. 3) Jersey Law, 1997 (Volume 1997,
page 689).

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     [(1)   A company may be wound up under this Chapter -

     (a)    in accordance with Article 144;

     (b)    in accordance with Article 144A; or

     (c)    in the following manner, namely -

            (i)    by making a statement of solvency in accordance with
                   paragraph (2);

            (ii)   by passing, within 28 days after the statement has been
                   signed by each of the directors of the company, a special
                   resolution that the company be wound up summarily; and

            (iii)  by delivering to the registrar, within 21 days after the
                   resolution has been passed, a copy of it in accordance with
                   Article 100 together with the statement](61)

     (2)    A statement of solvency shall be signed by each of the directors and
state that, having made full inquiry into the company's affairs, each of them is
satisfied -

     (a)    that the company has no assets and no liabilities; or

     (b)    that the company has assets and no liabilities; or

     (c)    that the company will be able to discharge its liabilities in full
            within six months after the commencement of the winding up,

as the case may be.

                  *     *     *     *     *     *     *(62)

                                  ARTICLE 147

                      [COMMENCEMENT OF SUMMARY WINDING UP

     A summary winding up under which assets of the company are to be
distributed commences

     (a)    where a limited life company has under paragraph (1) of Article 144
            been deemed to pass a special resolution for winding up, upon its
            being deemed to have done so;

     (b)    where a company (other than a limited life company) whose existence
            is limited by a period of time is wound up pursuant to Article 144A,
            upon the delivery to the registrar of a notice in accordance with
            either of paragraphs (1) and (2) of that Article and the statement
            of solvency under Article 146; and

     (c)    in any other case, on the passing of the special resolution for
            summary winding up.](63)

                                  ARTICLE 148

_______________________________

(61) Substituted by Companies (Amendment No. 3) (Jersey) Law, 1997 (Volume 1997,
page 690).
(62) Sub-paragraph (3) deleted by Companies (Amendment No. 3) (Jersey) Law 1997
(Volume 1997, page 690).
(63) Substitution by Companies (Amendment No. 3) (Jersey) Law, 1997 (Volume
1997, page 690).

                                      81

<PAGE>

                          EFFECT ON STATUS OF COMPANY

     After the commencement of a summary winding up of a company which has
assets the corporate state and capacity of the company continue until the
company is dissolved but, from the commencement of the winding up, its powers
shall be exercised only so far as may be required for the realization of the
assets of the company, the discharge of any liabilities of the company and the
distribution of its assets in accordance with Article 150.

                                  ARTICLE 149

                           APPOINTMENT OF LIQUIDATOR

     (1)    [On or after the date of commencement of a summary winding up of a
company, it](64) may by special resolution appoint a person to be liquidator for
the purposes of the winding up.

     (2)    On the appointment of a liquidator all the powers of the directors
cease except so far as the resolution appointing the liquidator or any
subsequent special resolution otherwise provides and, subject to any such
resolution and to Article 150, all those powers shall thereafter be exercisable
by the liquidator.

     (3)    Article 83 applies to a liquidator appointed under this Article as
it applies to a director.

                                  ARTICLE 150

                     APPLICATION OF ASSETS AND DISSOLUTION

     (1)    On the registration by the registrar of a statement delivered under
Article 146 that the company has no assets and no liabilities the company is
dissolved.

     (2)    On the registration by the registrar of a statement so delivered
that the company has assets and no liabilities the company shall forthwith
proceed to distribute its assets among its members according to their rights or
otherwise as provided by the memorandum or articles.

     (3)    On the registration by the registrar of a statement so delivered
that the company will be able to discharge its liabilities in full within six
months after the commencement of the winding up the assets of the company shall
be applied in satisfaction of the company's liabilities and, subject to that
application, shall be distributed as aforesaid.

     (4)    As soon as the company has completed the distribution of its assets
in accordance with paragraph (2) or (3), it shall deliver to the registrar a
statement signed by each of the directors or, if the distribution has been
completed by a liquidator appointed under Article 149, by the liquidator, that
each director or (as the case may be) the liquidator, having made full inquiry
into the company's affairs, is satisfied that the company has no assets and no
liabilities and, upon the registration of the statement, the company is
dissolved.

                                  ARTICLE 151

                              EFFECT OF INSOLVENCY

     (1)    This Article applies where after the commencement of a summary
winding up the directors (or, if there is a liquidator, the liquidator) form the
opinion that the company has liabilities which it will be unable to discharge in
full within six months after the commencement of the winding up.

     (2)    When that opinion is formed it shall be recorded in the minutes of a
meeting of the directors or, as the case may be, by the liquidator.

_______________________________

(64) Substitution by Companies (Amendment No.3) (Jersey) Law, 1997 (Volume 1997,
pages 690 and 691).

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<PAGE>

     (3)    The directors (or, if there is a liquidator, the liquidator) shall -

     (a)    by not less than 14 days' notice given by post, call a meeting of
            the creditors of the company to be held in the Island within 28 days
            after that opinion was recorded and the company shall in the notice
            nominate a person to be liquidator for the purpose of a creditors'
            winding up;

     (b)    when that notice is given to the creditors, deliver a copy of it to
            the registrar;

     (c)    not less than 10 days before the day for which the meeting is
            called, give notice of the meeting by advertisement in the Jersey
            Gazette;

     (d)    during the period before the creditors' meeting is held, furnish any
            creditor free of charge with such information concerning the affairs
            of the company as he may reasonably request; and

     (e)    make out a statement as to the affairs of the company and lay that
            statement before the creditors' meeting.

     (4)    The statement as to the affairs of the company shall be verified by
affidavit by some or all of the directors or (if there is a liquidator) by the
liquidator.

     (5)    If there is a liquidator, he shall preside at the creditors' meeting
and, if there is no liquidator, a director nominated by the directors shall
preside.

     (6)    As from the day on which the creditors' meeting under this Article
is held the winding up becomes a creditors' winding up and this Law has effect
as if that meeting was the meeting of creditors mentioned in Article 160.

     (7)    If the directors or, as the case may be, the liquidator without
reasonable excuse fail to comply with their obligations under the Article or if
a director, or, as the case may be, the liquidator fails to comply with
paragraph (5) so far as requiring him to preside at the creditors' meeting, the
directors or the director or the liquidator, (as the case may be) is guilty of
an offence.

     (8)    A director or liquidator who signs a statement delivered to the
registrar under Article 146 or 150 without having reasonable grounds for stating
that the company has no liabilities or that it will be able to discharge its
liabilities in full within six months after the commencement of the winding up
is guilty of an offence.

                                  ARTICLE 152

                     LIABILITY OF PAST DIRECTORS AND OTHERS

     (1)    This Article applies where -

     (a)    a company is dissolved under Article 150;

     (b)    an order is made under Article 213 declaring the dissolution void;

     (c)    when that order is made the company's assets (if any) are not
            sufficient for the discharge of all the liabilities admissible to
            proof against the company in a creditors' winding up; and

     (d)    the company's assets (if any) at the time of its dissolution were
            not sufficient for the discharge of all such liabilities at that
            time.

     (2)    Any person to whom any assets were distributed under Article 150 and
any director or liquidator who signed a statement delivered to the registrar
under Article 146 or 150 that the company had no liabilities (except a person
who shows that he had reasonable grounds for being satisfied when he signed the
statement that the company had no liabilities) are, so as to enable the

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<PAGE>

insufficiency referred to in sub-paragraph (d) of paragraph (1) to be met,
liable to contribute to the following extent to the company's assets.

     (3)    A person to whom any such distribution was made is liable to
contribute an amount not exceeding the amount or value of the assets which were
distributed to him and the directors and any such liquidator are jointly and
severally liable with that person to contribute that amount.

     (4)    A person who is liable to contribute, or who has contributed, any
amount to the assets under this Article may apply to the court for an order
directing any person jointly and severally liable with him in respect of that
amount to pay him such amount as the court thinks fair and reasonable.

                                  ARTICLE 153

                           REMUNERATION OF LIQUIDATOR

     A liquidator appointed under Article 149 shall be entitled to receive from
the company such remuneration as is agreed between him and the company before
his appointment or as is subsequently approved by the company in general meeting
or by the court.

                                  ARTICLE 154

                         CESSER OF OFFICE BY LIQUIDATOR

     A liquidator appointed under Article 149 may be removed from office by a
special resolution of the company and shall vacate office if he ceases to be
qualified to hold that office.

                                 [ARTICLE 154A

                       TERMINATION OF SUMMARY WINDING UP

     (1)    Where -

     (a)    the summary winding up of a company has commenced;

     (b)    the company has not received any contribution from any present or
            past member pursuant to Article 192;

     (c)    the company has not for the purposes of the winding up distributed
            any of its assets among its members;

     (d)    the company is able to discharge its liabilities as they fall due;
            and

     (e)    termination of the winding up has been approved by a special
            resolution of the company,

the documents described in paragraph (2) of this Article may be delivered to the
registrar and thereupon the winding up shall forthwith terminate.

     (2)    The documents to be delivered to the registrar pursuant to paragraph
(1) are -

     (a)    a certificate signed by all the directors of the company stating
            that the company -

            (i)    has received no such contribution;

            (ii)   has made no such distribution; and

            (iii)  is able to discharge its liabilities as they fall due; and

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<PAGE>

     (b)    a copy of the special resolution approving the termination of the
            winding up.

     (3)    Upon the termination of a winding up pursuant to paragraph (1) -

     (a)    any liquidator appointed for the purpose of the winding up shall
            cease to hold office; and

     (b)    the company and all other persons shall be in the same position,
            subject to paragraph (4), as if the winding up had not commenced.

     (4)    The termination of the winding up pursuant to paragraph (1) shall
not affect the validity of anything duly done by any liquidator, director or
other person, or by operation of law, before its termination.

     (5)    A director who signs a certificate delivered to the registrar
pursuant to paragraph (1) without having reasonable grounds for believing that
the statements in it are true is guilty of an offence.](65)

              CHAPTER 3 - WINDING UP ON JUST AND EQUITABLE GROUNDS

                                  ARTICLE 155

                           POWER FOR COURT TO WIND UP

     (1)    A company may be wound up by the court if the court is of the
opinion that it is just and equitable that the company should be wound up.

     [(2)   An application to the court under this Article may be made by -

     (a)    the company, or by a director or any member of the company; or

     (b)    the [Commission](66), in the case of a company which -

            (i)    holds or has held a permit under the Insurance Business
                   (Jersey) Law 1983(67) or the Collective Investment Funds
                   (Jersey) Law 1988(68); or

            (ii)   is or was registered under the Banking Business (Jersey) Law
                   1991(69) [or the Financial Services (Jersey) Law 1998](70)

     (3)    If the court orders a company to be wound up under this Article it
may -

     (a)    appoint a liquidator,

     (b)    direct the manner in which the winding-up is to be conducted; and

     (c)    make such orders as it sees fit to ensure that the winding-up is
            conducted in an orderly manner.](71)

     (4)    The Act of the court ordering the winding up of a company shall,
within 14 days

_______________________________

(65) Article inserted by Companies (Amendment No.3) (Jersey) Law, 1997 (Volume
1997, pages 691 and 692).
(66) The word "Commission inserted by the Financial Services Commission (Jersey)
Law 1998, Volume 1998, page 269.
(67) Volume 1990-1991, page 1023.
(68) Volume 1988-1989, page 133, Volume 1990-1991, page 1091, and R & O 8081.
(69) Volume 1990-1991, page 477, and Volume 1992-1993, page 93, 94 and 95.
(70) Words inserted by the Financial Services (Jersey) Law, 1998 (formerly the
Investment Business (Jersey) Law 1998) (Volume 2001) and substituted by the
Financial Services (Extension) (Jersey) Law 2000 (Volume 2000, page 713).
(71) The substitution of sub-paragraphs (2) and (3) by Companies (Amendment No.
2) (Jersey) Law 1995 (Volume 1994-1995, pages 351 and 352.

                                      85

<PAGE>

after the making of the order, be delivered by the company to the registrar and
recorded by him.

     (5)    If the company fails to comply with paragraph (4) it and every
officer of it in default is guilty of an offence.

                       CHAPTER 4 - CREDITORS' WINDING UP

                                  ARTICLE 156

                          APPLICATION OF THIS CHAPTER

     (1)    This Chapter applies to the winding up of a company otherwise than
under Chapter 1, 2 or 3 of this Part.

     (2)    A winding up under this Chapter is a creditors' winding up.

                                  ARTICLE 157

                                   PROCEDURE

     A company, not being one in respect of which a declaration has been made
(and not recalled) under the Desastre Law, may be wound up under this Chapter if
the company so resolves by special resolution.

                                  ARTICLE 158

                              NOTICE OF WINDING UP

     (1)    When a company has passed a resolution for a creditors' winding up,
it shall, within 14 days of the passing of the resolution, give notice of the
resolution by advertisement in the Jersey Gazette.

     (2)    In the event of failure to comply with this Article, the company and
every officer of it who is in default is guilty of an offence.

                                  ARTICLE 159

               COMMENCEMENT AND EFFECTS OF CREDITORS' WINDING UP

     (1)    A creditors' winding up is deemed to commence when the resolution
for winding up is passed or, where Article 151 applies, when the winding up
becomes a creditors' winding up; and the company shall from the commencement of
the winding up cease to carry on its business, except so far as may be required
for its beneficial winding up.

     (2)    The corporate state and capacity of the company continue until the
company is dissolved.

     (3)    A transfer of shares, not being a transfer made to or with the
sanction of the liquidator, and an alteration in the status of the company's
members made after the commencement of the

     winding up is void.

     (4)    After the commencement of the winding up no action shall be taken or
proceeded with against the company except by leave of the court and subject to
such terms as the court may impose.

                                  ARTICLE 160

                 MEETING OF CREDITORS IN CREDITORS' WINDING UP

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<PAGE>

     (1)    The company shall -

     (a)    not less than 14 days before the day on which there is to be held
            the company meeting at which the resolution for a creditors' winding
            up is to be proposed give by post to its creditors notice calling a
            meeting of creditors to be held in the Island on the same day as,
            and immediately following the conclusion of, the company meeting and
            nominating a person to be liquidator for the purposes of a
            creditors' winding up;

     (b)    give notice of the creditors' meeting by advertisement in the Jersey
            Gazette not less than 10 days before the day for which that meeting
            has been called;

     (c)    during the period before the creditors' meeting furnish creditors
            free of charge with such information concerning the company's
            affairs as they may reasonably require.

     (2)    The directors shall -

     (a)    make out a statement as to the affairs of the company, verified by
            affidavit by some or all of the directors;

     (b)    lay that statement before the creditors' meeting; and

     (c)    appoint a director to preside at that meeting,

and the director so appointed shall attend the meeting and preside over it.

     (3)    If -

     (a)    the company without reasonable excuse fails to comply with paragraph
            (1);

     (b)    the directors without reasonable excuse fail to comply with
            paragraph (2); or

     (c)    a director without reasonable excuse fails to comply with paragraph
            (2), so far as requiring him to attend and preside at the creditors'
            meeting,

the company, the directors or the director (as the case may be) is guilty of an
offence.

                                  ARTICLE 161

                           APPOINTMENT OF LIQUIDATOR

     (1)    The creditors and the company at their respective meetings mentioned
in Article 160 may nominate a person to be liquidator for the purpose of the
winding up.

     (2)    Where a creditors' meeting is called in accordance with Article 151,
the person nominated to be liquidator in the notice calling the meeting shall be
deemed, for the purposes of this Article, to have been nominated as aforesaid by
the company.

     (3)    The person nominated by the creditors, or if no person is nominated
by the creditors, the person nominated, or deemed to have been nominated, by the
company is appointed liquidator with effect from the conclusion of the
creditors' meeting.

     (4)    In the case of different persons being nominated, a director, member
or creditor of the company may, within seven days after the date on which the
nomination was made by the creditors, apply to the court for an order either -

     (a)    directing that the person nominated as liquidator by the company
            shall be liquidator instead of or jointly with the person nominated
            by the creditors; or

     (b)    appointing some other person to be liquidator instead of the person
            nominated by

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<PAGE>

            the creditors.

     (5)    A liquidator appointed under this Article shall within 14 days after
his appointment give notice thereof signed by him to the registrar and to the
creditors.

     (6)    A liquidator who fails to comply with paragraph (5) is guilty of an
offence.

     (7)    Article 83 applies to a liquidator appointed under this Article as
it applies to a director.

                                  ARTICLE 162

                      APPOINTMENT OF LIQUIDATION COMMITTEE

     (1)    A creditors' meeting may appoint a liquidation committee consisting
of not more than five persons to exercise the functions conferred on it by or
under this Law.

     (2)    If a committee is appointed, the company may, in general meeting,
appoint such number of persons not exceeding five as they think fit to act as
members of the committee.

     (3)    The creditors may resolve that all or any of the persons so
appointed by the company ought not to be members of the committee; and if the
creditors so resolve -

     (a)    the persons mentioned in the resolution are not then, unless the
            court otherwise directs, qualified to act as members of the
            committee; and

     (b)    on an application to the court under this provision the court may
            appoint other persons to act as such members in place of the persons
            mentioned in the resolution.

                                  ARTICLE 163

            REMUNERATION OF LIQUIDATOR, CESSER OF DIRECTORS' POWERS,
                      AND VACANCY IN OFFICE OF LIQUIDATOR

     (1)    A liquidator in a creditors' winding up is entitled to receive such
remuneration as is agreed between him and the liquidation committee or, if there
is no committee, between him and the creditors or, failing any such agreement,
as is fixed by the court.

     (2)    On the appointment of a liquidator in a creditors' winding up, all
the powers of the directors cease, except so far as the liquidation committee
(or, if there is no committee, the creditors) sanction their continuance.

     (3)    The creditors may at any time remove a liquidator.

     (4)    If a vacancy occurs, by death, resignation or otherwise, in the
office of a liquidator (other than a liquidator appointed by the court) the
creditors may fill the vacancy.

                                  ARTICLE 164

                            NO LIQUIDATOR APPOINTED

     (1)    This Article applies where a creditors' winding up has commenced but
no liquidator has been appointed.

     (2)    During the period before the appointment of a liquidator, the powers
of the directors shall not be exercised except -

     (a)    with the sanction of the court;

     (b)    to secure compliance with Article 160; or

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     (c)    to protect the company's assets.

     (3)    If the directors, without reasonable excuse, fail to comply with
            this Article, they are guilty of an offence.

                                  ARTICLE 165

                         COSTS OF CREDITORS' WINDING UP

     All costs, charges and expenses properly incurred in a creditors' winding
up, including the remuneration of the liquidator, are payable out of the
company's assets in priority to all other claims.

                                  ARTICLE 166

                 APPLICATION OF THE LAW RELATING TO "DESASTRE"

     (1)    Subject to this Article and Article 165, in a creditors' winding up
the same rules prevail with regard to the respective rights of secured and
unsecured creditors, to debts provable, to the time and manner of proving debts,
to the admission and rejection of proofs of debts, to the order of payment of
debts and to setting off debts as are in force for the time being with respect
to persons against whom a declaration has been made under the Desastre Law with
the substitution of references to the liquidator for references to the Viscount.

     (2)    Any surplus remaining after payment of the debts proved in the
winding up, before being applied for any other purpose, shall be applied in
paying interest on those debts which bore interest prior to the commencement of
the winding up in respect of the period during which they have been outstanding
since the commencement of the winding up and at the rate of interest applicable
apart from the winding up.

                                  ARTICLE 167

                     ARRANGEMENT WHEN BINDING ON CREDITORS

     (1)    An arrangement entered into between a company immediately preceding
the commencement of, or in the course of, a creditors' winding up and its
creditors is (subject to the right of appeal under this Article) binding -

     (a)    on the company, if sanctioned by a special resolution; and

     (b)    on the creditors, if acceded to by three-quarters in number and
            value of them.

     (2)    A creditor or contributory may, within three weeks from the
completion of the arrangement, appeal to the court against it; and the court may
thereupon, as it thinks just, amend, vary or confirm the arrangement.

                                  ARTICLE 168

                       MEETINGS OF COMPANY AND CREDITORS

     (1)    If a creditors' winding up continues for more than 12 months, the
liquidator shall call a general meeting of the company and a meeting of the
creditors to be held at the first convenient date within three months after the
end of the first 12 months from the commencement of the winding up, and of each
succeeding 12 months, or such longer period as the [Commission](72) may allow,
and shall lay before the meetings an account of his acts and dealings and of the
conduct of the winding up during the preceding 12 months.

_______________________________

(72) The word "Commission" inserted by the Financial Services Commission
(Jersey) Law 1998, Volume 1998, page 269.

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<PAGE>

     (2)    If the liquidator fails to comply with this Article, he is guilty of
an offence.

                                  ARTICLE 169

                         FINAL MEETING AND DISSOLUTION

     (1)    As soon as the affairs of a company in a creditors' winding up are
fully wound up, the liquidator shall make up an account of the winding up,
showing how it has been conducted and the company's property has been disposed
of, and thereupon shall call a general meeting of the company and a meeting of
the creditors for the purpose of laying the account before the meetings and
giving an explanation of it.

     (2)    Each such meeting shall be called by not less than 21 days' notice
sent by post, accompanied by a copy of the liquidator's account.

     (3)    Within seven days after the date of the meetings (or, if they are
not held on the same date, after the date of the later one) the liquidator shall
make a return to the registrar of the holding of the meetings and of their dates
and in the case of a public company a copy of the account.

     (4)    If the copy is not delivered or the return is not made in accordance
with paragraph (3), the liquidator is guilty of an offence.

     (5)    If a quorum is not present at either such meeting, the liquidator
shall, in lieu of the return required by paragraph (3), deliver a return that
the meeting was duly called and that no quorum was present; and when that return
is made the provisions of that paragraph as to the making of the return are, in
respect of that meeting, deemed complied with.

     (6)    The registrar on receiving the account and, in respect of each such
meeting, either of the returns mentioned above, shall forthwith register them,
and at the end of three months from the registration of the return the company
is deemed to be dissolved; but the court may, on the application of the
liquidator or of another person who appears to the court to be interested, make
an order deferring the date at which the dissolution of the company is to take
effect for such time as the court thinks fit.

     (7)    The person on whose application an order of the court under this
Article is made shall, within 14 days after the making of the order, deliver to
the registrar the relevant Act of the court for registration; and if that person
fails to do so he is guilty of an offence.

     (8)    If the liquidator fails to call a general meeting of the company or
a meeting of the creditors as required by this Article he is guilty of an
offence.

                                  ARTICLE 170

                        POWERS AND DUTIES OF LIQUIDATOR

     (1)    The liquidator in a creditors' winding up may, with the sanction of
the court or the liquidation committee (or, if there is no such committee, a
meeting of the creditors) -

     (a)    pay a class of creditors in full;

     (b)    compromise any claim by or against the company.

     (2)    The liquidator may, without sanction, exercise any other power of
the company as may be required for its beneficial winding up.

     (3)    The liquidator may -

     (a)    settle a list of contributories (and the list of contributories is
            prima facie evidence of the persons named in it to be
            contributories);

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     (b)    make calls;

     (c)    summon general meetings of the company for the purpose of obtaining
            its sanction by special resolution or for any other purpose he may
            think fit.

     (4)    The liquidator shall pay the company's debts and adjust the rights
of the contributories among themselves.

     (5)    The appointment or nomination of more than one person as liquidator
shall declare whether any act to be done is to be done by all or any one or more
of them, and in default, any such act may be done by two or more of them.

                                  ARTICLE 171

                       POWER TO DISCLAIM ONEROUS PROPERTY

     (1)    Subject to this Article, the liquidator in a creditors' winding up
may, within six months after the commencement of the winding up, by the giving
of notice, signed by him and referring to this Article and Article 172, to each
person who is interested in or under any liability in respect of the property
disclaimed, disclaim any onerous movable property, or any onerous immovable
property situated outside the Island, and may do so notwithstanding that he has
taken possession of it, endeavoured to sell it or otherwise exercised rights of
ownership in relation to it.

     (2)    For the purposes of this Article -

     (a)    onerous movable property is any -

            (i)    unprofitable contract, and

            (ii)   other movable property of the company which is unsaleable or
                   not readily saleable or is such that it may give rise to a
                   liability to pay money or perform any other onerous act;

     (b)    onerous immovable property is any immovable property of the company
            situated outside the Island and having the characteristics mentioned
            in clause (ii) of paragraph (a).

     (3)    A disclaimer under this Article -

     (a)    shall operate so as to determine, as from the date of the
            disclaimer, the rights, interests and liabilities of the company in
            or in respect of the property disclaimed; but

     (b)    shall not, except so far as is necessary for the purpose of
            releasing the company from liability, affect the rights or
            liabilities of any other person.

     (4)    A person sustaining loss or damage in consequence of the operation
of a disclaimer under this Article shall be deemed to be a creditor of the
company to the extent of the loss or damage and accordingly may prove for the
loss or damage in the winding up.

                                  ARTICLE 172

               POWERS OF COURT IN RESPECT OF DISCLAIMED PROPERTY

     (1)    This Article applies where the liquidator of a company has
disclaimed property under Article 171.

     (2)    An application may be made to the court under this Article by -

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     (a)    a person who claims an interest in the disclaimed property, or

     (b)    a person who is under a liability in respect of the disclaimed
            property, not being a liability discharged by the disclaimer.

     (3)    Subject to paragraph (4), the court may, on an application under
this Article, make an order on such terms as it thinks fit for the vesting of
the disclaimed property in, or for its delivery to -

     (a)    a person entitled to it or a trustee for such a person; or

     (b)    a person subject to a liability mentioned in sub-paragraph (b) of
            paragraph (2) or a trustee for such a person.

     (4)    The court shall not make an order by virtue of sub-paragraph (b) of
paragraph (3) except where it appears to the court that it would be just to do
so for the purpose of compensating the

     person subject to the liability in respect of the disclaimer.

     (5)    The effect of an order under this Article shall be taken into
account in assessing for the purpose of paragraph (4) of Article 171 the extent
of loss or damage sustained by a person in consequence of the disclaimer.

                                  ARTICLE 173

                      UNENFORCEABILITY OF LIENS ON RECORDS

     (1)    Subject to paragraph (2), in a creditors' winding up a lien or other
right to retain possession of any records of a company shall be unenforceable to
the extent that its enforcement would deny possession of those records to the
liquidator.

     (2)    Paragraph (1) does not apply to a lien on documents which give a
title to property and are held as such.

                                  ARTICLE 174

                 REFERENCE OF QUESTIONS AND POWERS TO THE COURT

     (1)    The liquidator or a contributory or creditor may apply to the court
to determine a question arising in a creditors' winding up, or to exercise all
or any of the powers which the court or the Viscount might exercise if a
declaration had been made in relation to the company under the Desastre Law.

     (2)    The court, if satisfied that the determination of the question or
the required exercise of power will be just and beneficial, may accede wholly or
partially to the applications on such terms and conditions as it thinks fit or
may make such other order on the application as it thinks just.

     (3)    An Act of the court recording the making of an order under this
Article staying the proceedings in the winding up shall, within 14 days after
the making of the order, be delivered by the company, or otherwise as may be
ordered by the court, to the registrar, who shall enter it in his records
relating to the company.

     (4)    If a company fails to comply with paragraph (3) it is guilty of an
offence.

                                  ARTICLE 175

               APPOINTMENT OR REMOVAL OF LIQUIDATOR BY THE COURT

     (1)    If for any reason there is, in a creditors' winding up, no
liquidator acting, the court

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may appoint a liquidator.

     (2)    The court may, on reason being given, remove a liquidator in a
creditors' winding up and appoint another.

                                  ARTICLE 176

                 TRANSACTIONS AT AN UNDERVALUE AND PREFERENCES

     (1)    Subject to this Article, where a company has at a relevant time -

     (a)    entered into a transaction with any person at an undervalue; or

     (b)    given a preference to any person,

the liquidator in a creditors' winding up may apply to the court for such order
as the court thinks fit for restoring the position to what it would have been if
the company had not entered into that transaction or given that preference, as
the case may be.

     (2)    For the purposes of this Article, a company enters into a
transaction with a person at an undervalue if the company -

     (a)    makes a gift to that person or it otherwise enters into a
            transaction with that person on terms for which there is no "cause";
            or

     (b)    enters into a transaction with that person for a "cause" the value
            of which, in money or money's worth, is significantly less than the
            value, in money or money's worth, of the "cause" provided by the
            company.

     (3)    For the purposes of this Article, a company gives a preference to a
person if -

     (a)    that person is one of the company's creditors or a surety or
            guarantor for any of the company's debts or other liabilities; and

     (b)    the company -

            (i)    does anything, or

            (ii)   suffers anything to be done,

     which has the effect of putting that person into a position which in the
     event of the company going into insolvent liquidation will be better than
     the position he would have been in if that thing had not been done.

     (4)    The court shall not make an order under this Article in respect of a
preference given to any person unless the company which gave it was influenced
in deciding to give it by a desire to produce in relation to that person the
effect referred to in sub-paragraph (b) of paragraph (3).

     (5)    Subject to paragraph (6), the time at which a company enters into a
transaction at an undervalue or gives a preference is a relevant time if the
transaction is entered into or the preference given -

     (a)    in the case of a transaction at an undervalue, at a time in the
            period of five years ending with the date of commencement of the
            winding up;

     (b)    in the case of a preference which is not a transaction at an
            undervalue, at a time in the period of one year ending with that
            date.

     (6)    Subject to paragraph (7), where a company enters into a transaction
at an undervalue or gives a preference at a time mentioned in sub-paragraph (a)
or (b) of paragraph (5), that time is

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<PAGE>

not a relevant time unless the company -

     (a)    is at that time unable to pay its debts as they fall due; or

     (b)    becomes unable to pay its debts as they fall due in consequence of
            the transaction or preference.

     (7)    Paragraph (6) shall not apply to a transaction at an undervalue
which takes place less than two years before the date of commencement of the
winding up.

     (8)    This Article shall not apply to a transaction entered into or a
preference given before the Article comes into force.

     (9)    In this Article, "cause" has the meaning assigned to it by the
customary law of the Island.

                                  ARTICLE 177

                 RESPONSIBILITY OF PERSONS FOR WRONGFUL TRADING

     (1)    Subject to paragraph (3), if in the course of a creditors' winding
up it appears that paragraph (2) applies in relation to a person who is or has
been a director of the company, the court on the application of the liquidator
may, if it thinks it proper to do so, order that that person be personally
responsible, without any limitation of liability, for all or any of the debts or
other liabilities of the, company arising after the time referred to in
paragraph (2).

     (2)    This paragraph applies in relation to a person if -

     (a)    at some time before the date of commencement of the winding up of
            the company that person -

            (i)    knew that there was no reasonable prospect that the company
                   would avoid a creditors' winding up, or

            (ii)   on the facts known to him was reckless as to whether the
                   company would avoid such a winding-up; and

     (b)    that person was a director of the company at that time.

     (3)    The court shall not make an order under paragraph (1) with respect
to any person if it is satisfied that after either condition specified in
sub-paragraph (a) of paragraph (2) was first satisfied in relation to him that
person took reasonable steps with a view to minimising the potential loss to the
company's creditors.

     (4)    On the hearing of an application under this Article, the liquidator
may himself give evidence or call witnesses.

                                  ARTICLE 178

                     RESPONSIBILITY FOR FRAUDULENT TRADING

     (1)    If, in the course of a creditors' winding up or where the court has
made a declaration under the Desastre Law in relation to a company, it appears
that any business of the company has been carried on with intent to defraud
creditors of the company or creditors of another person, or for a fraudulent
purpose, the court may, on the application of the liquidator or, where such a
declaration has been made, on the application of the Viscount, order that
persons who were knowingly parties to the carrying on of the business in that
manner are to be liable to make such contributions to the company's assets as
the court thinks proper.

     (2)    On the hearing of the application the liquidator or the Viscount may
himself give

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<PAGE>

evidence or call witnesses.

     (3)    Where the court makes an order under this Article or Article 177, it
may give such further directions as it thinks proper for giving effect to the
order.

     (4)    Where the court makes an order under this Article or Article 177 in
relation to a person who is a creditor of the company, it may direct that the
whole or part of a debt owed by the company to that person and any interest
thereon shall rank in priority after all other debts owed by the company and
after any interest on those debts.

     (5)    This Article and Article 177 have effect notwithstanding that the
person concerned may be criminally liable in respect of matters on the ground of
which the order under paragraph (1) is to be made.

                                  ARTICLE 179

                        EXTORTIONATE CREDIT TRANSACTIONS

     (1)    This Article applies in a creditors' winding up where the company
is, or has been, a party to a transaction for, or involving, the provision of
credit to the company.

     (2)    Subject to paragraph (5), the court may, on the application of the
liquidator, make an order with respect to the transaction if the transaction is
or was extortionate and was entered into in the period of three years ending
with the commencement of the winding up.

     (3)    For the purposes of this Article, a transaction is extortionate if,
having regard to the risk accepted by the person providing the credit -

     (a)    the terms of it are or were such as to require grossly exorbitant
            payments to be made (whether unconditionally or in certain
            contingencies) in respect of the provision of the credit; or

     (b)    it otherwise grossly contravened ordinary principles of fair
            dealing,

and it shall be presumed, unless the contrary is proved, that a transaction with
respect to which an application is made under this Article is or, as the case
may be, was extortionate.

     (4)    An order under this Article with respect to a transaction may
contain one or more of the following as the court thinks fit -

     (a)    provision setting aside the whole or part of an obligation created
            by the transaction;

     (b)    provision otherwise varying the terms of the transaction or varying
            the terms on which a security for the purposes of the transaction is
            held;

     (c)    provision requiring a person who is or was a party to the
            transaction to pay to the liquidator sums paid to that person, by
            virtue of the transaction, by the company;

     (d)    provision requiring a person to surrender to the liquidator property
            held by him as security for the purposes of the transaction;

     (e)    provision directing accounts to be taken between any persons.

     (5)    This Article shall not apply to a transaction entered into before
the Article comes into force.

                                  ARTICLE 180

                        DELIVERY AND SEIZURE OF PROPERTY

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<PAGE>

     (1)    Where a person has in his possession or control property or records
to which a company appears in a creditors' winding up to be entitled, the court
may require that person forthwith (or within a period which the court may
direct) to pay, deliver, convey, surrender or transfer the property or records
to the liquidator.

     (2)    Where -

     (a)    the liquidator seizes or disposes of property which is not property
            of the company; and

     (b)    at the time of seizure or disposal the liquidator believes, and has
            reasonable grounds for believing, that he is entitled (whether in
            pursuance of an order of the court or otherwise) to seize or dispose
            of that property,

the liquidator shall not be liable to any person in respect of loss or damage
resulting from the seizure or disposal except in so far as that loss or damage
is caused by the negligence of the liquidator, and shall have a lien on the
property, or the proceeds of its sale, for expenses incurred in connexion with
the seizure or disposal.

                                  ARTICLE 181

            LIABILITY IN RESPECT OF PURCHASE OR REDEMPTION OF SHARES

     (1)    This Article applies when a company is being wound up in a
creditors' winding up and -

     (a)    it has under Article 55 or 57 or Regulations made under Article 59
            made a payment out of share premium account in respect of the
            redemption or purchase of any of its own shares (in this Article
            referred to as "the relevant payment"); and

     (b)    the aggregate amount of the company's assets and the amounts paid by
            way of contribution to its assets (apart from this Article) is not
            sufficient for payment of its liabilities and the expenses of the
            winding up.

     (2)    If the winding up commenced within one year of the date on which the
relevant payment was made, then -

     (a)    the person from whom the shares were redeemed or purchased; or

     (b)    the directors at the time the payment was authorized except a
            director who shows that, on reasonable grounds, he held the belief
            referred to in Article 56,

are, so as to enable that insufficiency to be met, liable to contribute to the
following extent to the company's assets.

     (3)    A person from whom any of the shares were redeemed or purchased is
liable to contribute an amount not exceeding so much of the relevant payment as
was made by the company in respect of his shares; and the directors are jointly
and severally liable with that person to contribute that amount.

     (4)    A person who has contributed an amount to the assets in pursuance of
this Article may apply to the court for an order directing any other person
jointly and severally liable in respect of that amount to pay him an amount as
the court thinks just and equitable.

     (5)    Article 192 does not apply in relation to liability accruing by
virtue of this Article.

     (6)    The States may by Regulations make such modifications to this
Article as appear to be reasonably necessary in consequence of any Regulations
made under Article 59.

                                  ARTICLE 182

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<PAGE>

                    RESOLUTIONS PASSED AT ADJOURNED MEETINGS

     Where a resolution is passed at an adjourned meeting of a company's
creditors, the resolution is treated for all purposes as having been passed on
the date on which it was in fact passed, and not as having been passed on any
earlier date.

                                  ARTICLE 183

                       DUTY TO CO-OPERATE WITH LIQUIDATOR

     (1)    In a creditors' winding up each of the person mentioned in paragraph
(2) shall -

     (a)    give the liquidator information concerning the company and its
            promotion, formation, business, dealings, affairs or property which
            the liquidator may at any time after the commencement of the winding
            up reasonably require; and

     (b)    attend on the liquidator at reasonable times and on reasonable
            notice when requested to do so.

     (2)    The persons referred to in paragraph (1) are -

     (a)    those who are, or have at any time been, officers of the company,

     (b)    those who have taken part in the formation of the company at any
            time within one year before the commencement of the winding up;

     (c)    those who are in the employment of the company, or have been in its
            employment within that year, and are in the liquidator's opinion
            capable of giving information which he requires; and

     (d)    those who are, or have within that year been, officers of, or in the
            employment of, another company which is, or within that year was, an
            officer of the company in question.

     (3)    For the purposes of paragraph (2) "employment" includes employment
under a contract for services ("contrat de louage d'ouvrage").

     (4)    If a person without reasonable excuse fails to comply with an
obligation imposed by this Article, he is guilty of an offence.

     (5)    Sub-paragraph (d) of paragraph (2) shall cease to have effect on the
expiration of 18 months from the date on which Article 73 comes into force.

                                  ARTICLE 184

                LIQUIDATOR TO REPORT POSSIBLE CRIMINAL OFFENCES

     (1)    If it appears to the liquidator in the course of a creditors'
winding up that any person has been guilty of an offence in relation to the
company for which he is criminally liable, he shall -

     (a)    forthwith report the matter to the Attorney-General; and

     (b)    furnish the Attorney-General with information and give him access
            to, and facilities for inspecting and taking copies of, documents
            (being information or documents in the possession or under the
            control of the liquidator and relating to the matter in question) as
            the Attorney-General requires.

     (2)    Where a report is made to him under paragraph (1), the
Attorney-General may refer

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<PAGE>

the matter to the Committee [or the Commission](73) for further enquiry; and the
Committee [or the Commission] -

     (a)    shall thereupon investigate the matter; and

     (b)    for the purpose of the investigation may exercise any of the powers
            which are exercisable by inspectors appointed under Article 128 to
            investigate a company's affairs.

     (3)    If it appears to the court in the course of a creditors' winding up
that any person has been guilty as mentioned in paragraph (1), and that no
report with respect to the matter has been made by the liquidator to the
Attorney-General under that paragraph, the court may (on the application of a
person interested in the winding up or of its own motion) direct the liquidator
to make such a report; and on a report being made accordingly this Article shall
have effect as though the report had been made in pursuance of paragraph (1).

                                  ARTICLE 185

                     OBLIGATIONS ARISING UNDER ARTICLE 184

     (1)    For the purpose of an investigation by the Committee [or the
Commission](74) under paragraph (2) of Article 184, an obligation imposed on a
person by a provision of this Law to produce documents or give information to,
or otherwise to assist, inspectors appointed as mentioned in that paragraph is
to be regarded as an obligation similarly to assist the Committee [or the
Commission] in its investigation.

     (2)    An answer given by a person to a question put to him in exercise of
the powers conferred by paragraph (2) of Article may be used in evidence against
him.

     (3)    Where criminal proceedings are instituted by the Attorney-General
following a report or reference under Article 184, the liquidator and every
officer and agent of the company past and present (other than the defendant)
shall give the Attorney-General any assistance in connexion with the prosecution
which he is reasonably able to give; and for this purpose "agent" includes a
banker, advocate or solicitor of the company and a person employed by the
company as auditor, whether or not that person is an officer of the company.

     (4)    If a person fails or neglects to give assistance as required by
paragraph (3), the court may, on the application of the Attorney-General, direct
the person to comply with that paragraph; and if the application is made with
respect to a liquidator, the court may (unless it appears that the failure or
neglect to comply was due to the liquidator not having in his hands sufficient
assets of the company to enable him to do so) direct that the costs shall be
borne by the liquidator personally.

                 CHAPTER 5 - PROVISIONS OF GENERAL APPLICATION

                                  ARTICLE 186

                       DISTRIBUTION OF COMPANY'S PROPERTY

     Subject to the provisions of any enactment as to preferential payments, a
company's property shall on winding up be realised and applied in satisfaction
of the company's liabilities pari passu and, subject to that application, shall
(unless the memorandum or articles otherwise provide) be distributed among the
members according to their rights and interests in the company.

                                  ARTICLE 187

             ENFORCEMENT OF LIQUIDATOR'S DUTY TO MAKE RETURNS, ETC.

_______________________________

(73) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 270.
(74) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 270.

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<PAGE>

     (1)    If, in a winding up, a director or a liquidator who has defaulted in
delivering a document or in giving any notice which he is by law required to
deliver or give fails to make good the default within 14 days after the service
on him of a notice requiring him to do so the court has the following powers.

     (2)    On an application made by a creditor or contributory of the company,
or by the registrar, the court may make an order directing the director or the
liquidator to make good the default within the time specified in the order.

     (3)    The court's order may provide that costs of and incidental to the
application shall be borne, in whole or in part, by the director or the
liquidator personally.

     (4)    Nothing in paragraph (1) prejudices the operation of any enactment
imposing penalties on a director or a liquidator in respect of a default
mentioned therein.

                                ARTICLE 188(75)

                          QUALIFICATIONS OF LIQUIDATOR

     (1)    A person who is not an individual is not qualified to act as a
liquidator.

     (2)    The Committee may prescribe the qualifications required for any
person to act as a liquidator.

     (3)    An appointment made in contravention of this Article or any Order
made under it is void; a person who acts as liquidator when not qualified to do
so is guilty of an offence.

     (4)    A liquidator shall vacate office if he ceases to be a person
qualified to act as a liquidator.

                                  ARTICLE 189

             CORRUPT INDUCEMENT AFFECTING APPOINTMENT AS LIQUIDATOR

     A person who gives or agrees or offers to give to a member or creditor of a
company any valuable benefit with a view to securing his own appointment or
nomination, or to securing or preventing the appointment or nomination of some
person other than himself, as the company's liquidator, is guilty of an offence.

                                  ARTICLE 190

                NOTIFICATION BY LIQUIDATOR OF RESIGNATION, ETC.

     (1)    A liquidator who resigns, is removed or for any other reason vacates
office shall within 14 days after the resignation, removal or vacation of office
give notice thereof, signed by him, to the registrar and in the case of a
creditors' winding up (except where the removal is pursuant to paragraph (3) of
Article 163) to the creditors.

     (2)    If a liquidator fails to comply with paragraph (1) he is guilty of
an offence.

_______________________________

(75) Note should be had to the Companies (General Provisions) (Jersey) Order
1992, No. 8324), the Companies (General Provisions) (Amendment) (Jersey) Order
1992, No. 8390, the Companies (General Provisions) (Amendment No.2) (Jersey)
Order 1995, No. 8782, the Companies (General Provisions) (Amendment No.3)
(Jersey) Order 1995, No. 8868 and the Companies (General Provisions) (Amendment
No.4) (Jersey) Order 1998, No. 9262.

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<PAGE>

                                  ARTICLE 191

                  NOTIFICATION THAT COMPANY IS IN LIQUIDATION

     (1)    When a company is being wound up, every invoice, order for goods or
            services or business letter issued by or on behalf of the company,
            or a liquidator of the company, being a document on or in which the
            name of the company appears, shall contain a statement that the
            company is in liquidation.

     (2)    In the event of failure to comply with this Article, the company and
            every office of it who is in default is guilty of an offence.

                                  ARTICLE 192

            LIABILITY AS CONTRIBUTORIES OF PRESENT AND PAST MEMBERS

     (1)    When a company is wound up, every present and past member is liable
to contribute to its assets to an amount sufficient for payment of its
liabilities, and the expenses of the winding up, and for the adjustment of the
rights of the contributories among themselves; but, without prejudice to
Article 181 -

     (a)    a member, past or present, is not liable under this paragraph to
            contribute in respect of any shares allotted before this Article
            comes into force;

     (b)    a past member is not liable to contribute if he has ceased to be a
            member for one year or more before the commencement of the winding
            up;

     (c)    a past member is not liable to contribute in respect of a liability
            of the company contracted after he ceased to be a member;

     (d)    a past member is not liable to contribute unless it appears to the
            court that the existing members are unable to satisfy the
            contributions required to be made by them in pursuance of this Law
            or the Laws repealed by Article 223;

     (e)    no contribution is required from a past or present member exceeding
            the amount (if any) unpaid on the shares in respect of which he is
            liable;

     (f)    a sum due to a member of the company (in his character of a member)
            by way of dividends, profits or otherwise is not deemed to be a
            liability of the company, payable to that member in a case of
            competition between himself and any other creditor not a member of
            the company, but any such sum may be taken into account for the
            purpose of the final adjustment of the rights of the contributories
            among themselves.

     (2)    The liability imposed on contributories by the Laws repealed by
Article 223 shall continue to apply in respect of shares allotted before this
Article comes into force.

                                  ARTICLE 193

                  BAR AGAINST OTHER PROCEEDINGS IN BANKRUPTCY

     The winding up of a company under this Law bars the right to take any other
proceedings in bankruptcy except the right of a creditor or the company to apply
for a declaration under the Desastre Law.

                                  ARTICLE 194

                              DISPOSAL OF RECORDS

     (1)    When a company has been wound up and is about to be dissolved, its
records and

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those of liquidator may be disposed of as follows:-

     (a)    in the case of a summary winding up, in the way that the company by
            special resolution directs; and

     (b)    in the case of a creditors' winding up, in the way that the
            liquidation committee or, if there is no such committee, the
            company's creditors, may direct.

     (2)    After 10 years from the company's dissolution no responsibility
rests on the company, a liquidator, or a person to whom the custody of the
records has been committed, by reason of any record not being forthcoming to a
person claiming to be interested in it.

     (3)    The [Commission](76) may direct that for such period as it thinks
proper (but not exceeding 10 years from the company's dissolution), the records
of a company which has been wound up shall not be destroyed.

     (4)    If a person acts in contravention of a direction made for the
purposes of this Article, he is guilty of an offence.

                                   PART XXII

                               EXTERNAL COMPANIES

                                  ARTICLE 195

                  POWER TO MAKE REGULATIONS AS TO REGISTRATION
                      AND REGULATION OF EXTERNAL COMPANIES

     (1)    This Article applies to external companies.

     (2)    The States may by Regulations make provisions with respect to any of
the following matters-

     (a)    the delivery to the registrar by an external company of-

            (i)    notice that it has become or ceased to be an external
                   company,

            (ii)   particulars of its name, place and date of incorporation and
                   its registered number in that place,

            (iii)  the address of its registered office or principal place of
                   business, and

            (iv)   an address in the Island at which a document may be served on
                   it;

     (b)    requiring an external company to change the name under which it
            carries on business in the Island, or which it uses in connexion
            with an address in the Island for the purposes of its business; and

     (c)    the manner in which a document may be served on an external company.

     (3)    Regulations under this Article may provide for the payment of annual
and other fees and for the imposition of fines and daily default fines for
breaches of the Regulations.

     (4)    If a person passes off or represents an external company as
incorporated in the Island he is guilty of an offence.

_______________________________

(76) The word "Commission" inserted by the Financial Services Commission
(Jersey) Law 1998, Volume 1998, page 269.

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<PAGE>

                                   PART XXIII

                                   REGISTRAR

                                  ARTICLE 196

                          REGISTRAR AND OTHER OFFICERS

     (1)    For the purposes of the registration of companies under this Law,
there shall be appointed an officer known as the registrar of companies and such
other officers as may be necessary to assist the registrar in the exercise of
his functions under this Law.

     (2)    Any functions of the registrar under this Law may, to the extent
authorized by him, be exercised by any officer on [the staff of the Commission.

     (3)    An officer appointed under this Article shall be an officer of the
Commission.](77)

                                  ARTICLE 197

                                REGISTRAR'S SEAL

     The [Commission](78) may direct a seal or seals to be prepared for the
authentication of documents required for or in connexion with the registration
of companies.

                                  ARTICLE 198

                               REGISTERED NUMBERS

     (1)    The registrar shall allocate to every company a number, which shall
be known as the company's registered number.

     (2)    Companies' registered numbers shall be in such form, consisting of
one or more sequences of figures or letters as the registrar may from time to
time determine.

     (3)    The registrar may upon adopting a new form of registered number make
such changes of existing registered numbers as appear to him necessary.

                                  ARTICLE 199

           SIZE, DURABILITY, ETC. OF DOCUMENTS DELIVERED TO REGISTRAR

     (1)    For the purpose of securing that documents delivered to the
registrar are of standard size, durable and easily legible, the Committee may
prescribe requirements (whether as to size, weight, quality or colour of paper,
size, type or colouring of lettering, or otherwise) as the Committee may
consider appropriate; and different requirements may be prescribed for different
documents or classes of documents.

     (2)    If a document is delivered to the registrar (whether an original
document or a copy) which in the registrar's opinion does not comply with the
prescribed requirements applicable to it, the registrar may serve on a person by
whom the document was delivered (or, if there are two or more such persons, on
any of them) a notice stating his opinion to that effect and indicating the
requirements so prescribed with which in his opinion the document does not
comply.

     (3)    Where the registrar serves a notice under paragraph (2), then for
the purposes of any enactment which enables a penalty to be imposed in respect
of an omission to deliver to the

_______________________________

(77) Words and subsection inserted by the Financial Services Commission (Jersey)
Law 1998, Volume 1998, page 271.
(78) The word "Commission" inserted by the Financial Services Commission
(Jersey) Law 1998, Volume 1998, page 269.

                                      102

<PAGE>

registrar a document required to be delivered under that provision (and, in
particular, for the purposes of any such enactment whereby such a penalty may be
imposed by reference to each day during which the omission continues).

     (a)    a duty imposed by that provision to deliver a document to the
            registrar is to be treated as not having been discharged by the
            delivery of that document; but

     (b)    no account is to be taken of days falling within the period
            beginning with the day on which the document was delivered to the
            registrar and ending with the fourteenth day after the date of
            service of the notice under paragraph (2).

                                  ARTICLE 200

                 FORM OF DOCUMENTS TO BE DELIVERED TO REGISTRAR

     (1)    Where any Article of this Law requires a document to be delivered to
the registrar, but the form of the document has not been prescribed, it shall be
sufficient compliance with that requirement if-

     (a)    the document is delivered in a form which is acceptable to the
            registrar, or

     (b)    the information in question is delivered in material other than a
            document, being material which is acceptable to the registrar,

and the document or information, as the case may be, is accompanied by the
prescribed fee, if any.

     (2)    In this Article and Article 201, any reference to delivering a
document includes, in the case of a notice, giving it.

                                 ARTICLE 201(79)

                                 FEES AND FORMS

     (1)    The Committee may by Order require the payment to the registrar of
such fees as may be prescribed in respect of-

     (a)    the performance by the registrar of such functions under this Law as
            may be specified in the Order, including the receipt by him of any
            document under this Law which is required to be delivered to him;
            and

     (b)    the inspection of documents or other material held by him under this
            Law.

     (2)    The registrar may charge a fee for any services provided by him
otherwise than in pursuance of an obligation imposed on him by this Law.

     (3)    Where a fee is provided for or charged under this Article for the
performance of an act or duty by the registrar, no action need be taken by him
until the fee is paid, and where the fee is payable on the receipt by him of a
document required to be delivered to him he shall be deemed not to have received
it until the fee is paid.

     (4)    The Committee may prescribe forms to be used for any of the purposes
of this Law and the manner in which any document to be delivered to the
registrar is to be authenticated.

     (5)    Unless otherwise provided by or under this Law, any document
delivered to the registrar by a company pursuant to this Law shall be signed by
an officer or the secretary of the

_______________________________

(79) Note should be taken of the Companies (Fees) (Jersey) Order 1992, No. 8325,
the Companies (Fees) (Amendment) (Jersey) Order 1995, No. 8850, the Companies
(Fees) (Amendment No. 2) (Jersey) Order 1998, No. 9261, the Companies (Fees)
(Amendment No. 3) (Jersey) Order 1999, No. 9465 and the Companies (Fees)
(Amendment No. 4) (Jersey) Order 1999, No. 73/2000.

                                      103

<PAGE>

company.

     (6)    Fees paid to the registrar shall form part of the [income of the
Commission](80).

                                 [ARTICLE 201A

                        KEEPING OF RECORDS BY REGISTRAR

     (1)    The information that is contained in a document delivered to the
registrar under this Law or to the Judicial Greffier under the Laws repealed by
Article 223 and kept by the registrar may be recorded and kept by the registrar
in any form-

     (a)    which is approved by the [Commission](81);

     (b)    which is capable of being inspected; and

     (c)    of which a copy can be produced in legible form.

     (2)    The keeping by the registrar of a record of a document in accordance
with paragraph (1) shall be sufficient compliance with any duty that he has to
keep a document.

                                  ARTICLE 202

             INSPECTION AND PRODUCTION OF RECORDS KEPT BY REGISTRAR

     (1)    A person may inspect a record kept by the registrar.

     (2)    A person may require-

     (a)    a certificate of the incorporation of the company; or

     (b)    a certified or uncertified copy of a record, kept by the registrar,
            which the person is entitled to inspect or of any part of such a
            record.

     (3)    A certificate given under paragraph (2) shall be signed by the
registrar and sealed with his seal.

     (4)    A copy, certified in writing by the registrar in the manner
described in paragraph (3) to be an accurate copy-

     (a)    of a record kept by the registrar; or

     (b)    of any part of such a record,

shall be admissible in evidence in all legal proceedings as of equal validity
with the original record and as evidence of any fact stated in it of which
direct oral evidence would be admissible.

     (5)    Where a document purports on its face to be a copy of a record or
part of a record, certified in either case in accordance with paragraphs (3) and
(4), it shall be unnecessary for the purposes of paragraph (4) to prove the
official position or handwriting of the registrar.

     (6)    The rights conferred by paragraphs (1) and (2) are subject to the
following limitations-

     (a)    the right of inspection does not extend to an original document of
            which a record is kept in accordance with paragraph (1) of Article
            201A;

_______________________________

(80) Words inserted by the Financial Services Commission (Jersey) Law 1998.
Volume 1998, page 271.
(81) The word "Commission" inserted by the Financial Services Commission
(Jersey) Law 1998, Volume 1998, page 269.

                                      104

<PAGE>

     (b)    in relation to documents delivered to the registrar with a
            prospectus pursuant to a requirement of an Order made under Article
            29, the rights shall be exercisable only during the period or with
            the permission specified in the Order; and

     (c)    the rights conferred by paragraph (2) are subject to paragraphs (3)
            of Article 71:](82)

                                  ARTICLE 203

                 ENFORCEMENT OF COMPANY'S DUTY TO MAKE RETURNS

     (1)    If a company, having failed to comply with a provision of this Law
which requires it to deliver to the registrar any document, or to give notice to
him of any matter, does not make good the failure within 14 days after the
service of a notice on the company requiring it to do so, the court may, on an
application made to it by a member or creditor of the company or by the
registrar, make an order directing the company and any officer of it to make
good the failure within a time specified in the order.

     (2)    The court's order may provide that all costs of and incidental to
the application shall be borne by the company or by any officers of it
responsible for the failure.

     (3)    Nothing in this Article prejudices the operation of any Article
imposing penalties on a company or its officers in respect of a failure
mentioned above.

                                  ARTICLE 204

                            [DESTRUCTION OF RECORDS

     The registrar may destroy any record kept by him-

     (a)    where it is an original document and the registrar has recorded and
            kept the information in it in accordance with paragraph (1) of
            Article 201A;

     (b)    where it has been kept for over 10 years and is or was comprised in
            or annexed or attached to the accounts or annual returns of a
            company; or

     (c)    where it relates only to a company that has been dissolved (whether
            under this Law or otherwise) more than ten years previously.](83)

                                  ARTICLE 205

               REGISTRAR MAY STRIKE DEFUNCT COMPANY OFF REGISTER

     (1)    If the registrar has reason to believe that a company is not
carrying on business or in operation, he may send to the company by post a
letter inquiring whether the company is carrying on business or in operation.

     (2)    If the registrar receives an answer to the effect that the company
is not carrying on business or in operation, or does not within one month after
sending the letter receive an answer, he may publish in the Jersey Gazette, and
send to the company by post, a notice that at the end of three months from the
date of that notice the name of the company mentioned in it will, unless reason
is shown to the contrary, be struck off the register and the company will be
dissolved.

     (3)    If, where a company is being wound up in a creditors' winding up,
the registrar has reason to believe either that no liquidator is acting, or that
the affairs of the company are fully

_______________________________

(82) Substitution of Articles 201A and 202 by Companies (Amendment No. 3)
(Jersey) Law, 1997 (Volume 1997, pages 693 and 694).
(83) Substitution by Companies (Amendment No. 3) (Jersey) Law, 1997 (Volume
1997, pages 694 and 695).

                                      105

<PAGE>

wound up, and the returns required to be made by the liquidator have not been
made for a period of six consecutive months, the registrar shall publish in the
Jersey Gazette and send to the company or the liquidator (if any) a notice
similar to that provided for in paragraph (2).

     (4)    If the registrar has reason to believe that a company which is being
wound up summarily has, for a period of six months failed to comply with
paragraph (4) of Article 150, he shall publish in the Jersey Gazette and send to
the company or the liquidator (if any) a notice similar to that provided for in
paragraph (2).

     (5)    At the end of the period mentioned in the notice the registrar may,
unless reason to the contrary is previously shown by the company or a member,
creditor or liquidator of it, strike its name off the register, and shall
publish notice of this in the Jersey Gazette; and on the striking off the
company is dissolved; but the liability (if any) of every director and member of
the company continues and may be enforced as if the company had not been
dissolved.

     (6)    A notice to be sent under this Article to a liquidator may be
addressed to him at his last known place of business.

                                 [ARTICLE 205A

          REGISTRAR MAY STRIKE COMPANY OFF REGISTER AT END OF DURATION

     (1)    Where in the case of a company (other than a limited life company)-

     (a)    its memorandum specifies or its articles specify a period of time
            for the duration of the company;

     (b)    that period has expired; and

     (c)    a notice in accordance with either of paragraphs (1) and (2) of
            Article 144A has not been delivered to the registrar,

the registrar may proceed in accordance with paragraph (2).

     (2)    Where the registrar is entitled to proceed in accordance with this
paragraph, he may publish in the Jersey Gazette, and send to the company by
post, a notice that at the end of three months from the date of that notice the
name of the company mentioned in it will, unless reason is shown to the
contrary, be struck off the register and the company will be dissolved.

     (3)    At the end of the period mentioned in the notice the registrar may,
unless reason to the contrary is previously shown by the company or a member,
creditor or liquidator of it, strike its name off the register, and shall
publish notice of this in the Jersey Gazette; and on the striking off the
company is dissolved; but the liability (if any) of every director and member of
the company continues and may be enforced as if the company had not been
dissolved.](84)

                                   PART XXIV

                       MISCELLANEOUS AND FINAL PROVISIONS

                                  ARTICLE 206

                           FORM OF COMPANY'S RECORDS

     (1)    The records, which a company is required by this Law to keep, may be
kept in the form of a bound or loose-leaf book, or photographic film, or may be
entered or recorded by a system of mechanical or electronic data processing or
any other information storage device that is capable of reproducing any required
information in intelligible written form within a reasonable time.

_______________________________

(84)

                                      106

<PAGE>

     (2)    A company shall take reasonable precautions-

     (a)    to prevent loss or destruction of;

     (b)    to prevent falsification of entries in; and

     (c)    to facilitate detection and correction of inaccuracies in,

the records required by this Law to be kept, and a company which fails to comply
with the provisions of this paragraph is guilty of an offence.

                                  ARTICLE 207

              EXAMINATION OF RECORDS AND ADMISSIBILITY OF EVIDENCE

     (1)    If any record referred to in paragraph (1) of Article 206 is kept
otherwise than in intelligible written form, any duty imposed on the company by
this Law to allow examination of, or to furnish extracts from, such record shall
be treated as a duty to allow examination of, or to furnish a copy of the
extract from, the record in intelligible written form.

     (2)    The records kept by a company in compliance with this Law shall be
admissible in the form in which they are made intelligible under paragraph (1)
as prima facie evidence, before and after the dissolution the company, of all
facts stated therein.

                                  ARTICLE 208

          PRODUCTION AND INSPECTION OF RECORDS WHERE OFFENCE SUSPECTED

     (1)    If, on an application by the Attorney-General, there is shown to be
reasonable cause to believe that a person has, while an officer of a company,
committed an offence in connexion with the management of the company's affairs
and that evidence of the commission of the offence is to be found in any records
of or under the control of the company, the court may make an order-

     (a)    authorizing a person named in it to inspect the records in question,
            or any of them, for the purpose of investigating and obtaining
            evidence of the offence; or

     (b)    requiring the secretary of the company or an officer of it named in
            the order to produce and make available the records (or any of them)
            to a person named in the order at a place so named.

     (2)    Paragraph (1) applies also in relation to records of a person
carrying on the business of banking so far as they relate to the company's
affairs, as it applies to records of or under the control of the company, except
that no order referred to in sub-paragraph (b) of paragraph (1) shall be made by
virtue of this paragraph.

     (3)    The decision of the court on an application under this Article is
not appealable.

                                  ARTICLE 209

                          LEGAL PROFESSIONAL PRIVILEGE

     Where criminal proceedings are instituted by the Attorney General under
this Law against any person, nothing in this Law is to be taken to require any
person to disclose any information which he is entitled to refuse to disclose on
grounds of legal professional privilege in proceedings in the court.

                                  ARTICLE 210

                      RIGHT TO REFUSE TO ANSWER QUESTIONS

                                      107

<PAGE>

     A person may refuse to answer any question put to him pursuant to any
provision of this Law if his answer would tend to expose that person, or the
spouse of that person, to proceedings under the law of the Island for an offence
or for the recovery of any penalty.

                                  ARTICLE 211

                          RELIEF FOR PRIVATE COMPANIES

     The States may, by Regulations, provide that private companies, or private
companies satisfying conditions specified in the Regulations, shall be exempt
from compliance with any provision of this Law so specified or that any such
provision shall apply to such companies with such modifications as may be so
specified.

                                  ARTICLE 212

                POWER OF COURT TO GRANT RELIEF IN CERTAIN CASES

     (1)    If in proceedings for negligence, default, breach of duty or breach
of trust against an officer of a company or a person employed by a company as
auditor it appears to the court that that officer or person is or may be liable
in respect of the negligence, default, breach of duty or breach of trust, but
that he has acted honestly and that having regard to all the circumstances of
the case (including those connected with his appointment) he ought fairly to be
excused for the negligence, default, breach of duty or breach of trust, the
court may relieve him, either wholly or partly, from his liability on such terms
as it thinks fit.

     (2)    If an officer or person mentioned in paragraph (1) has reason to
apprehend that a claim will or might be made against him in respect of
negligence, default, breach of duty or breach of trust, he may apply to the
court for relief; and the court on the application has the same power to relieve
him as it would have had if proceedings against that person for negligence,
default, breach of duty or breach of trust had been brought.

                                  ARTICLE 213

             POWER OF COURT TO DECLARE DISSOLUTION OF COMPANY VOID

     (1)    Where a company has been dissolved under this Law, the Desastre Law
or the Laws repealed by Article 223, the court may at any time within 10 years
of the date of the dissolution, on an application made for the purpose by a
liquidator of the company or by any other person appearing to the court to be
interested, make an order, on such terms as the court thinks fit, declaring the
dissolution to have been void and the court may by the order give such
directions and make such provisions as seem just for placing the company and all
other persons in the same position as nearly as may be as if the company had not
been dissolved.

     (2)    Thereupon such proceedings may be taken which might have been taken
if the company had not been dissolved.

     (3)    The person on whose application the order was made shall within 14
days after the making of the order (or such further time as the court may
allow), deliver the relevant Act of the court to the registrar for registration.

     (4)    A person who fails to comply with paragraph (3) is guilty of an
offence.

                                  ARTICLE 214

                      REGISTRATION IN THE PUBLIC REGISTRY

     The Judicial Greffier shall register in the Public Registry all Acts and
orders affecting immovable property made under this Law.

                                      108

<PAGE>

                                  [ARTICLE 215

                             PUNISHMENT OF OFFENCES

     (1)    The First Schedule has effect with respect to the way in which
offences under this Law are punishable on conviction.

     (2)    In relation to an offence under a provision of this Law specified in
the first column of the First Schedule (the general nature of the offence being
described in the second column)-

     (a)    the corresponding entry in the third column shows the maximum
            punishment by way of fine or imprisonment under this Law that may be
            imposed on a person convicted of an offence;

     (b)    the corresponding entry (if any) in the fourth column shows that a
            person convicted of the offence is also liable to a daily default
            fine;

     (c)    a reference in the third column to a period of years or months is a
            reference to a term of imprisonment of that duration; and

     (d)    a reference in the third or fourth column to a level is a reference
            to a fine of that level on the standard scale.(85)

     (3)    In sub-paragraph (b) of paragraph (2), liability to a daily default
fine means that if-

     (a)    a person has been convicted of the offence;

     (b)    he is convicted of having again committed that offence; and

     (c)    on that subsequent occasion the contravention has continued for more
            than one day.

then in addition to his liability to a fine under sub-paragraph (a) of paragraph
(2) on conviction in respect of that subsequent offence, he is liable to the
fine specified in the fourth column of the First Schedule for each day (other
than the first day) on which the subsequent offence is proved to have continued.

     (4)    For the purpose of any Article of this Law where under or pursuant
to this Law an officer of a company or other body corporate who is in default is
guilty of an offence, the expression "officer in default" means any officer of
the company or body corporate who knowingly and wilfully authorizes or permits
the default, refusal or contravention mentioned in the Article.]

                                  ARTICLE 216

                            ACCESSORIES AND ABETTORS

     Any person who knowingly or wilfully aids, abets, counsels, causes,
procures or commands the commission of an offence punishable by this Law shall
be liable to be dealt with, tried and punished as a principal offender.

                                  ARTICLE 217

                          GENERAL POWERS OF THE COURT

     (1)    Where, on the application of the Attorney-General or the registrar,
the court is satisfied that any person has failed to comply with any requirement
made by or pursuant to this Law, or has committed any breach of duty as an
officer of the company, it may order that person to comply with that requirement
or, so far as the breach of duty is capable of being made good,

_______________________________

(85) See Criminal Justice (Standard Scale of Fines) (Jersey) Law 1993, Volume
1992-1993, page 437.

                                      109

<PAGE>

make good the breach.

     (2)    The court shall not make an order against any person under this
Article unless the court has given that person the opportunity of adducing
evidence and being heard in relation to the matter to which the application
relates.

                                 [ARTICLE 217A

                            LIMITATION OF LIABILITY

     (1)    No person or body to whom this Article applies shall be liable in
damages for anything done or omitted in the discharge or purported discharge of
any functions under this Law or any enactment made, or purportedly made, under
this Law unless it is shown that the act or omission was in bad faith.

     (2)    This Article applies to-

     (a)    the States;

     (b)    the Committee, any member of the Committee, or any person who is, or
            is acting as, an officer, servant or agent of the Committee or who
            is an inspector appointed by the Committee under Article 128 or who
            is performing any duty or exercising any power on behalf of the
            Committee; and

     (c)    the Commission, any Commissioner or any person who is, or is acting
            as, an officer, servant or agent of the Commission or who is an
            inspector appointed by the Commission under Article 128 or who is
            performing any duty or exercising any power on behalf of the
            Commission.](86)

                                  ARTICLE 218

                              POWER TO MAKE RULES

     Rules may be made in the manner prescribed by the Royal Court (Jersey) Law
1948(87) relating to the procedure to be followed by the court in giving effect
to the provisions of this Law.

                                  ARTICLE 219

                                     ORDERS

     (1)    The Committee may by Order make provision for the purpose of
carrying this Law into effect and, in particular, but without prejudice to the
generality of the foregoing, for prescribing any matter which may be prescribed
by this Law.

     [(1A)  The Committee shall consult the Commission before making any Order
under this Law.](88)

     (2)    The Subordinate Legislation (Jersey) Law 1960(89) shall apply to
Orders made under this Law.

_______________________________

(86) Article inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, pages 271 and 272.
(87) Tome VII, page 502, Volume 1979-1981, page 195, Volume 1984-1985, pages 175
and 178, and Volume 1990-199, page 113.
(88) Sub-paragraph inserted by the Financial Services Commission (Jersey) Law
1998, Volume 1998, page 272.
(89) Tome VIII, page 849.

                                      110

<PAGE>

                                  ARTICLE 220

                GENERAL PROVISIONS AS TO REGULATIONS AND ORDERS

     (1)    Except insofar as this Law otherwise provides, any power conferred
thereby to make any Regulations or Order may be exercised-

     (a)    either in relation to all cases to which the power extends, or in
            relation to all those cases subject to specified exceptions, or in
            relation to any specified cases or classes of case; and

     (b)    so as to make in relation to the cases in relation to which it is
            exercised-

            (i)    the full provision to which the power extends or any less
                   provision (whether by way of exception or otherwise), or

            (ii)   the same provision for all cases in relation to which the
                   power is exercised or different provisions for different
                   cases or classes of, case, or different provisions as
                   respects the same case or class of case for different
                   purposes of this Law, or

            (iii)  any such provision either unconditionally or subject to any
                   specified conditions.

     (2)    Without prejudice to any specific provision of this Law, any
Regulations or Order under this Law may contain such transitional,
consequential, incidental or supplementary provisions as appear to the States or
the Committee, as the case may be, to be necessary or expedient for the purposes
of the Regulations or Order.

                                 ARTICLE 221(90)

                            TRANSITIONAL PROVISIONS

     (1)    The transitional provisions in the Second Schedule shall have effect
with regard to the Laws repealed by Article 223 and to existing companies.

     (2)    The States may, by Regulations, make provision for any other
transitional matter connected with the coming into force of this Law.

                                  ARTICLE 222

                            CONSEQUENTIAL AMENDMENTS

     The enactments specified in the first column of the Third Schedule shall be
amended to the extent and in the manner set out in the second column thereof.

                                  ARTICLE 223

                                     REPEAL

     The Companies (Jersey) Laws 1861 to 1968(91) are repealed.

                                  ARTICLE 224

                          SHORT TITLE AND COMMENCEMENT

     (1)    This Law may be cited as the Companies (Jersey) Law 1991.

_______________________________

(90) Note should be had to the Companies (Transitional Provisions) (Repeal)
(Jersey) Regulations 1992, No. 8468.
(91) Tomes I-III, page 232, and Volume 1968-1969, page 103.

                                      111

<PAGE>

     (2)    This Law shall come into force on such day as the States may by Act
appoint and different days may be appointed for different purposes or different
provisions of this Law.

                                                        R.S. GRAY

                                               Deputy Greffier of the States.

                                      112

<PAGE>

                               FIRST SCHEDULE(92)

                                 (ARTICLE 215)

                             PUNISHMENT OF OFFENCES

<TABLE>
<CAPTION>
Article of Law     General nature of offence                     Punishment              Daily default
creating                                                                                 fine (where
offence                                                                                  applicable)

<S>                <C>                                           <C>                     <C>
12(2)              Company failing to send to one of its
                   members a copy of its memorandum or
                   articles, when so required by the member      Level 3

14(4)              Company failing to deliver to Judicial
                   Greffier copy of altered certificate of
                   incorporation following change of name        Level 3                 Level 2

15(5)              Company failing to change name on
                   direction of registrar                        Level 3                 Level 2

17(4)              Private company failing to deliver to
                   registrar Act of the court relieving
                   company from consequences of increasing the
                   number of its members beyond 30               Level 3                 Level 2

17(4)              Company failing to deliver to registrar copy
                   of direction by [Commission](93) modifying
                   Article 17(1) in its application to the
                   company                                       Level 3                 Level 2

17(5)              Private company issuing a prospectus          2 years or a
                                                                 fine; or both

22(1)              Company failing to have its name engraved
                   on company seal                               Level 3

22(2)              Officer of company etc. using company seal
                   without name engraved on it                   Level 3

29(3)              Failure to comply with Order of the
                   Committee prohibiting the circulation of a
                   prospectus in the Island or the circulation
                   of a prospectus in the Island or elsewhere    2 years or a
                   by a company                                  fine; or both

33                 Circulation of a prospectus with a material
                   statement in it which is untrue or misleading
                   or with the omission from it of the           10 years or a
                   statement of a material fact                   fine; or both

36(2)              Public company failing to deliver to
                   registrar statement disclosing the amount or
                   rate per cent of share commission             Level 3                 Level 2

_______________________________

(92) First Schedule substituted in its entirety by Companies (Amendment No. 3)
(Jersey) Law, 1997 (Volume 1997, pages 698 to 708).
(93) Words inserted by the Financial Services Commission (Jersey) Law 1998
(Volume 1998, pages 272 and 273).

                                      113

<PAGE>

41(3)              Company failing to keep a register of
                   members                                       Level 4                 Level 2

44(4)              Company failing to give notice to registrar
                   as to place where register of members is
                   kept                                          Level 4                 Level 2

45(3)              Refusal of inspection of members' register;
                   failure to send copy on requisition           Level 4

46(3)              Misuse of information obtained from
                   members' register                             A fine

47(4)              Company failing to deliver to registrar
                   Act of court ordering rectification of
                   register of members                           Level 3                 Level 2

50(5)              Company default in compliance with Article
                   50(1) (Certificates to be made ready
                   following allotment or transfer of shares)    Level 3                 Level 2

53(5)              Company failing to deliver to registrar Act
                   of court when application made to cancel
                   resolution varying shareholders rights        Level 3                 Level 2

54(5)              Company failing to deliver to registrar
                   statement or notice required by Article 54
                   (particulars of shares carrying special
                   rights)                                       Level 3                 Level 2

58(5)              Company giving financial assistance towards
                   acquisition of its own shares in contravention
                   of Article 58                                 A fine

58(5)              Officer of company contravening Article 58    2 years or a
                                                                 fine; or both

66                 Officer of company concealing name of
                   creditor entitled to object to reduction of
                   capital, or wilfully misrepresenting nature   2 years or a
                   or amount of debt or claim, etc.              fine; or both

68(2)              Company failing to display name outside
                   registered office                             Level 3                 Level 2

69(2)              Company failing to have name on business
                   correspondence, invoices, etc.                Level 3

70(3)              Company failing to comply with Article
                   70(1) or (2) (matters to be stated on
                   business correspondence, etc.)                Level 3

78(4)              Person acting in contravention of             2 years or a
                   disqualification order                        fine; or both

83(4)              Default in complying with Article 83
                   (keeping register of directors and
                   secretaries; refusal of inspection)           Level 3                 Level 2

87(8)              Company default in holding annual
                   general meeting                               Level 4

                                      114

<PAGE>

88(3)              Company default in complying with
                   [Commission's] direction to hold company
                   meeting                                       A fine

88(5)              Company failing to register resolution that
                   meeting held under Article 88 is to be its
                   annual general meeting                        Level 3                 Level 2

96(3)              Failure to give notice, to member entitled
                   to vote at company meeting, that he may do
                   so by proxy                                   Level 3

96(5)              Officer of company authorizing or permitting
                   issue of irregular invitations to appoint
                   proxies                                       A fine

98(4)              Company failing to keep minutes of
                   proceedings at company and board meetings,
                   etc.                                          Level 3                 Level 2

99(3)              Refusal of inspection of minutes of general
                   meeting; failure to send copy of minutes on
                   member's request                              Level 3

100(5)             Company failing to include copy of
                   resolution to which Article 100 applies with
                   memorandum or articles; failing to forward
                   copy to member on request                     Level 3

105(2)             Company failing to supply copy of accounts
                   to member on demand                           Level 4                 Level 2

107                Company failing to comply with Article 102
                   (keeping accounting records), 103 (retaining                           For
                   accounting records), 104 (preparing and                                contravention
                   laying accounts) or 106 (failing to deliver                            of Article
                   copy of accounts to registrar)                Level 4                  106, Level 2

107                Officer of public company failing to comply   2 years or a
                   with Article 102, 103, 104 or 106             fine; or both

109(9)             Company failing to appoint auditors when
                   required to do so                             A fine

111(9)             Auditor ceasing to hold office failing to
                   deposit statement as required by
                   Article 111(7)                                A fine

111(10)            Company failing to send notice of auditor's
                   resignation to members and to other persons
                   entitled to receive notice of general
                   meetings                                      A fine

112                Company officer or secretary making
                   misleading, false or deceptive statement to   5 years or a
                   auditors                                      fine; or both

113(6)             Person acting as company auditor knowing
                   himself to be disqualified; failing to give
                   notice vacating office when he becomes        2 years or a
                   disqualified                                  fine; or both

                                      115

<PAGE>

117(6)             Offeror failing to send to company whose
                   shares are the subject of the offer notice
                   and declaration required by Article 117(4);
                   making false declaration for purposes of      2 years or a
                   Article 117(4)                                fine; or both

119(6)             Offeror failing to give minority shareholder
                   notice or rights exercisable under
                   Article 119(1) or (2)                         A fine

125(4)             Company failing to annex Act of court to
                   memorandum                                    Level 3

126(6)             Company failing to comply with requirements
                   of Article 126 (information to members and
                   creditors about compromise or arrangement)    Level 3

126(7)             Director or trustee for debenture holders
                   failing to give notice to company of such
                   matters relating to himself as are necessary
                   for purposes of Article 126                   A fine

127(4)             Company failing to deliver to registrar Act
                   of court sanctioning compromise or
                   arrangement                                   Level 3                 Level 2

133                Obstruction of person acting in execution     2 years or a
                   of search warrant issued under Article 132    fine; or both

143(5)             Company failing to deliver to registrar Act
                   of court altering, or giving leave to alter,
                   company's memorandum or articles following
                   application by members, [Committee or
                   Commission](94)                               Level 3                 Level 2

151(7)             Director or liquidator failing to comply
                   with obligations under Article 151 (company
                   to discharge liabilities in full within six
                   months of commencement of summary winding
                   up); director or liquidator failing to
                   preside at creditor's meeting                 A fine

151(8)             Director or liquidator of company in summary
                   winding up making statement of solvency
                   without having reasonable grounds for that    2 years or a
                   opinion                                       fine; or both

155A(5)            Director signing certificate for termination
                   of summary winding up without having
                   reasonable grounds for believing contents     2 years or a
                   true                                          fine; or both

155(5)             Company failing to deliver to registrar Act
                   of court ordering company to be wound up on
                   just and equitable grounds                    Level 3                 Level 2

_______________________________

(94) Words inserted by the Financial Services Commission (Jersey) Law 1998,
Volume 1998, page 273.

                                      116

<PAGE>

158(2)             Company failing to advertise resolution for
                   creditors' winding up                         Level 3                 Level 2

160(3)             Company or director failing to comply with
                   Article 160 in respect of calling or giving
                   notice of creditors' meeting; directors
                   failing to attend and lay statement before
                   creditors' meeting                            A fine

161(6)             Liquidator failing to give notice of
                   appointment                                   Level 3                 Level 2

164(3)             Directors exercising powers in breach of      6 months or a
                   Article 164, where no liquidator              fine; or both

168(2)             Liquidator failing to call company general
                   meeting and creditors' meeting at end of
                   each year                                     Level 3

169(4)             Liquidator failing to give registrar notice
                   of final meeting                              Level 2                 Level 1

169(7)             Failure to deliver to registrar Act of
                   court deferring dissolution of company        Level 3                 Level 2

169(8)             Liquidator, failing to call final meeting
                   of company or creditors                       Level 3

174(4)             Failure to deliver to registrar Act of court
                   staying proceedings in creditors' winding
                   up                                            Level 3                 Level 2

183(4)             Failure to co-operate with liquidator         6 months or a
                                                                 fine; or both

188(3)             Person acting as liquidator when not          2 years or a
                   qualified to do so                            fine; or both

189                Giving, offering etc. corrupt inducement      2 years or a
                   affecting appointment as liquidator           fine; or both

190(2)             Liquidator failing to give notice of
                   resignation, etc.                             A fine

191(2)             Failing to state on correspondence,
                   etc. that company is in liquidation           A fine

194(4)             Contravening a direction regarding
                   destruction of records of company which
                   has been wound up                             Level 4

195(4)             Person passing off or representing external
                   company as incorporated in the Island         A fine

206(2)             Company failing to take reasonable
                   precautions to prevent loss or
                   falsification of company records              Level 3

213(4)             Failing to deliver to registrar Act of
                   the court declaring dissolution of company
                   void                                          Level 3                 Level 2

                                      117

<PAGE>

Second             Failure of existing company to notify than
Schedule,          registrar that it has more 30 members         Level 3                 Level 2
paragraph 8(2)

Second             Failure of existing company to notify
Schedule,          registrar of address of registered office     Level 3                 Level 2
paragraph 9(3)
</TABLE>

                                      118

<PAGE>

                                SECOND SCHEDULE

                                 (ARTICLE 221)

                            TRANSITIONAL PROVISIONS

                                 INTERPRETATION

     1.     For the purposes of this Schedule-

     "APPOINTED DAY" means the day on which Article 223 comes into force;

     "THE 1861 LAW" means the "Loi (1861) sur les Societes a Responsabilite
     Limitee"95;

     "THE FORMER LAWS" means the Laws repealed by Article 223;

     "THE 1968 LAW" means the Companies (Supplementary Provisions) (Jersey) Law
     1968(96).

                   COMPANY HAVING NO ARTICLES OF ASSOCIATION

     2.     Where, within six months before the appointed day, a memorandum of
association of a company has been registered under Article 3 of the 1861 Law,
but no articles of association have been presented for registration under
Article 5 of that Law before the appointed day, the memorandum of association
shall be null and the company shall not be incorporated under that Law.

               UNCONFIRMED SPECIAL RESOLUTION BY EXISTING COMPANY

     3.     Where-

     (a)    within 30 days before the appointed day the shareholders of a
            company have adopted a resolution in respect of which the conditions
            specified in paragraphs 1 and 2 of Article 27 of the 1861 Law have
            been complied with; but

     (b)    the resolution has not before the appointed day been confirmed in
            accordance with paragraph 3 of that Article.

the resolution, if confirmed on or after the appointed day in the manner
provided in paragraph 3 of that Article, shall be treated as a special
resolution passed under this Law on the date when the resolution is confirmed.

                 WINDING UP AND DISSOLUTION OF EXISTING COMPANY

     4.     Where on the appointed day an existing company has been dissolved
pursuant to the former Laws but the winding up and liquidation of its affairs
have not been completed, the winding up and liquidation shall proceed in the
same manner and with the same incidents as if this Law had not been enacted.

                   NOTICES UNDER ARTICLE 38A OF THE 1861 LAW

     5.     Where, before the appointed day, the Judicial Greffier has delivered
to a company a notice under paragraph (1) of Article 38A of the 1861 Law, the
provisions of paragraphs (2),(3),(6) and (7) of that Article shall continue in
force after the appointed day for the purposes of giving effect to that notice.

                  REGISTRATION OF DOCUMENTS UNDER FORMER LAWS

_______________________________

(95) Tomes I-III, page 232.
(96) Volume 1968-1969, page 103.

                                      119

<PAGE>

     6.     Where, under any provision of the former Laws, an obligation to
register a document with, or that it be registered by, the Judicial Greffier is
outstanding on the appointed day or where, after the appointed day, such an
obligation arises under any provision of the former Laws which continues to have
effect by virtue of Article 19 of the Interpretation (Jersey) Law 1954(97), the
obligation shall have effect with the substitution of a requirement to deliver
the document to the registrar for registration for the requirement to register
it with, or that it be registered by, the Judicial Greffier.

                         RECORDS OF EXISTING COMPANIES

     7.     On the appointed day all documents and records relating to existing
companies held by the court or by the Judicial Greffier pursuant to any of the
provisions of the former Laws shall be delivered to the registrar.

                         MEMBERSHIP OF EXISTING COMPANY

     8.     (1)    An existing company which, when Article 16 comes into force,
has more than 30 members shall within three months deliver to the registrar a
statement of that fact and the registrar shall thereupon issue a certificate of
incorporation showing the company to be a public company.

     (2)    If a company fails to comply with sub-paragraph (1) it is guilty of
an offence.

                       PUBLIC OFFICE OF EXISTING COMPANY

     9.     (1)     When Article 67 comes into force, the public office of an
existing company as notified to the Judicial Greffier for the purposes of
Article 17 of the 1861 Law shall be deemed to be its registered office.

     (2)    An existing company which has not so notified the Judicial Greffier
of the address of its public office, shall within three months of the coming
into force of Article 67-

     (a)    establish a registered office as required by that Article; and

     (b)    notify the registrar of the address of that office.

     (3)    If a company fails to comply with sub-paragraph (2) it is guilty of
an offence.

                                    OFFENCES

     10.    (I)    An offence committed before the appointed day under any of
the provisions of the former Laws may, notwithstanding any repeal by this Law,
be prosecuted and punished after that day as if this Law had not been enacted.

     (2)    A contravention of any provision of the former Laws committed before
the appointed day shall not be visited with any more severe punishment under
this Law than would have been applicable under that provision at the time of
the contravention; but where an offence for the continuance of which a penalty
was provided has been committed under any provision of the former Laws,
proceedings may be taken under this Law in respect of the continuance of the
offence on and after the appointed day in the like manner as if the offence had
been committed under the corresponding provision of this Law.

                    REFERENCES ELSEWHERE TO THE FORMER LAWS

     11     (1)    A reference in any enactment, instrument or document (whether
express or implied, and in whatever phraseology) to a provision of the former
Laws which is replaced by a corresponding provision of this Law is to be read,
where necessary to retain for the enactment,

_______________________________

(97) Tome VIII, page 384.

                                      120

<PAGE>

instrument or document the same force and effect as it would have had but for
the enactment of this Law, as, or as including, a reference to the corresponding
provision by which it is replaced in this Law.

     (2)    The generality of sub-paragraph (1) is not affected by any specific
conversion of references made by this Law, nor by the inclusion in any provision
of this Law of a reference (whether express or implied, and in whatever
phraseology) to the provision of the former Laws which is replaced by a
corresponding provision of this Law.

                  SAVING FOR INTERPRETATION (JERSEY) LAW 1954

     12.    Nothing in this Schedule shall be taken as prejudicing Article 19 of
the Interpretation (Jersey) Law 1954(98) (effect of repeal and re-enactment
etc).

_______________________________

(98) Tome VIII, page 384.

                                      121

<PAGE>

                                 THIRD SCHEDULE

                                 (ARTICLE 222)

                  CONSEQUENTIAL AMENDMENTS OF OTHER ENACTMENTS

<TABLE>
<CAPTION>
               Enactment                                           Amendment

<S>                                               <C>
Interpretation (Jersey) Law 1954(99)              For sub-paragraph (f) there shall be substituted
Article 13                                        the following sub-paragraph-

                                                  "(f) in the case of a company, the winding up of
                                                  the company by means of a creditors' winding up
                                                  pursuant to the Companies (Jersey) Law 1991;".

Income Tax (Jersey) Law 1961(100)                 In paragraph (1) after the words "Loi (1861) sur
[Article 89                                       les Societes a Responsabilitie Limitee" there shall
                                                  be inserted the words "or the companies (Jersey)
                                                  Law 1991".](102)

Article 123                                       In paragraph (1) after the words "Loi (1861) sur
                                                  les Societes a Responsabilite Limitee" there shall
                                                  be inserted the words "or the Companies (Jersey)
                                                  Law 1991".

Limited Liability Companies (Registration         (a) for paragraph (1) there shall be substituted the
Fees) (Jersey) Law 1967(101)                      following paragraph.
Article 1

                                                  "(1) Every application to the registrar in accordance
                                                  with the provisions of the companies (Jersey) Law 1991
                                                  for the registration of a company and for the
                                                  registration of any increase in the nominal authorized
                                                  capital of such a company shall be accompanied by the
                                                  appropriate fee required by virtue of the provisions
                                                  of this Law.":

                                                  (b) In paragraph (3) for the words "Royal Court" there
                                                  shall be substituted the word "registrar".

_______________________________

(99) Tome VIII, page 382.
(100) Volume 1961-1962, page 279, and Volume 1988-1989, page 383.
(101) Volume 1966-1967, pages 727 and 728.
(102) Amendment inserted by Companies (Amendment) (Jersey) Law, 1992 (Volume 1992-1993, page 64).

                                      122

<PAGE>

Insurance Business (Jersey) Law 1983(103)         (a) in paragraph (2) after the words "Loi (1861) sur
Article 3                                         les Societes a Responsabilitie Limitee" there shall be
                                                  inserted the words "or the Companies (Jersey) Law 1991";

                                                  (b) In sub-paragraph (c) of paragraph (4)-

                                                           (i)    for the words "Law or" there shall be
                                                           substituted the word "Law,";

_______________________________

(103) Volume 1982-1983, pages 75 and 77.

                                      123

<PAGE>

                                                           (ii) at the end there shall be added the words
                                                           "or the Companies (Jersey) Law 1991".

Company Securities (insider Dealing)              (a) In paragraph (1) -
(Jersey) Law 1988(104)
Article 1                                                  (i)  for the definition of "the Companies Laws"
                                                           there shall be substituted the following definition-

                                                           " 'the Companies Law' means the Companies (Jersey)
                                                           Law 1991";

                                                           (ii) in the definition of "share" for the words
                                                           "Companies Laws" there shall be substituted the words
                                                           "Companies Law";

                                                  (b) In paragraph (2)-

                                                           (i)  for the words "Companies Laws" there shall be
                                                           substituted the words "Companies Laws";

                                                           (ii) for the words "those Laws" there shall be
                                                           substituted the words "that Law".

Article 4                                         In the definition of "company" for the words "Companies
                                                  Laws" there shall be substituted the words "Companies Law".

Article 5                                         In sub-paragraph (a) of the definition of "securities" for
                                                  the words "Companies Laws" there shall be substituted the
                                                  words "Companies Law".

Collective Investment Funds (Jersey) Law          In sub-paragraph (2) after the words "Loi (1861) sur les
1988(105)                                         Societes a Responsabilite Limitee" there shall be inserted
Article 4                                         the words "or the Companies (Jersey) Law 1991".

Drug Trafficking Offences (Jersey) Law            In paragraph (1) the definition of "company" shall be
1988(106)                                         deleted.
Article 1

Bankruptcy (Desastre) (Jersey) Law 1990(107)      In paragraph (1)-
Article 1
                                                  (a) at the end of sub-paragraph (a) of the definition of
                                                  "company" there shall be inserted the words "or the Companies
                                                  (Jersey) Law 1991".

                                                  (b) after the definition of "property" there shall be inserted
                                                  the following definition-

_______________________________

(104) Volume 1988-1989, pages 1,2 and 4.

                                      124

<PAGE>

                                                           "'registrar means the registrar of companies appointed
                                                           pursuant to Article 196 of the Companies (Jersey)
                                                           Law 1991".

Article 4                                         For clause (i) of sub-paragraph (d) of paragraph (1) there shall
                                                  be substituted the following clause-

                                                           "(i) is registered under the 'Loi (1861) sur les
                                                           Societes a Responsabilite Limitee' or the Companies
                                                           (Jersey) Law 1991, or".

Article 36                                        In sub-paragraph (2)-

                                                  (a) after the words "Loi (1861) sur les Societes a Responsabilite
                                                  Limitee"' there shall be inserted the words "or the Companies
                                                  (Jersey) Law 1991";

                                                  (b) for the words "Judicial Greffier" there shall be substituted
                                                  the word "registrar".

Article 38                                        (a) For paragraph (2) there shall be substituted the following
                                                  paragraph-

                                                           "(2) Subject to paragraph (3), where the debtor is a
                                                           company registered under the 'Loi (1861) sur les Societes
                                                           a Responsabilite Limitee'(108) or the Companies (Jersey)
                                                           Law 1991 it shall be dissolved with effect from the date
                                                           on which the registrar receives the notice under paragraph
                                                           (2) of Article 36, which notice the registrar shall
                                                           thereupon register";

                                                           (b) In paragraph (3) for the words "Judicial Greffier"
                                                           there shall be substituted the word "registrar".
</TABLE>

_______________________________

(105) Volume 1988-1989, page 140.
(106) Volume 1988-1989, page 259.
(107) Volume 1990-1991, pages 45, 46, 50, 81 and 82.
(108) Tomes I-III, page 232, and Volume 1968-1969, page 103.

                                      125<PAGE>

                                                              EXECUTION COPY

                             Dated 15 June, 2001

                        SOCIETE DES MINES DE MORILA S.A.
                               as the Borrower

               RANDGOLD RESOURCES LIMITED AND MORILA LIMITED(1)
              as the Continuing Randgold Completion Guarantors

                   RANDGOLD & EXPLORATION COMPANY LIMITED
               as the Retiring Randgold Completion Guarantor

               VARIOUS BANKS AND OTHER FINANCIAL INSTITUTIONS
                 as the Lenders, Arrangers and Co-arrangers

                                     AND

                        N M ROTHSCHILD & SONS LIMITED
                        as the Agent for the Lenders

             _____________________________________________________

                           SUPPLEMENTAL AGREEMENT
                        relating to a Loan Agreement,
                           dated 21 December 1999
             ____________________________________________________

                                    MAYER
                                    BROWN
                                    &PLATT

                            Bucklersbury       House
                            3 Queen Victoria  Street
                            London,   EC4N       8EL
                            Telephone: 020 7246 6200
                            Fax:  020  7329    4465
                            Reference: 99514374

                       __________________________________

          Previously called Randgold Resources (Morila) Limited.

<PAGE>

     THIS SUPPLEMENTAL AGREEMENT (this "AGREEMENT") is made the 15th day of
June 2001 between:

(1)  SOCIETE DES MINES DE MORILA S.A. (the "BORROWER"):

(2)  RANDGOLD RESOURCES LIMITED and MORILA LIMITED (collectively, the
     "CONTINUING RANDGOLD COMPLETION GUARANTORS"):

(3)  RANDGOLD & EXPLORATION COMPANY LIMITED (the "RETIRING RANDGOLD COMPLETION
     GUARANTOR"):

(4)  THE VARIOUS BANKS AND OTHER FINANCIAL INSTITUTIONS referred to on the
     signature pages hereof as the Lenders, the Arrangers and the Co-Arrangers:
     and

(5)  N M ROTHSCHILD & SONS LIMITED, as the Agent for the Lenders (the
    "AGENT").

WHEREAS:

(A)  The Borrower, the Continuing Randgold Completion Guarantors. the Retiring
     Randgold Completion Guarantor, the Lenders, the Arrangers, the
     Co-Arrangers and the Agent entered into a Loan Agreement. dated 21 December
     1999 (such Loan Agreement, as amended by the letter agreement, dated
     10 April, 2000, the "ORIGINAL LOAN AGREEMENT").

(B)  The parties hereto now desire to amend and restate the terms of the
     Original Loan Agreement in its entirety as provided herein.

IT IS HEREBY AGREED as follows:

1.   DEFINED TERMS; INTERPRETATION; DEED

     Save as expressly defined herein, capitalised terms defined in the
     Original Loan Agreement shall have the same meanings in this Agreement and
     shall be interpreted in accordance therewith, including Article 1 thereof,
     and the provisions of such Article shall apply to this Agreement, mutatis
     mutandis, as if set out herein. Without limiting the generality of the
     foregoing, this Agreement shall be deemed to be a Loan Document.

     The parties hereto intend that this Agreement shall take effect as a deed.

2.   AMENDMENT AND RESTATEMENT

     With effect from the Restatement Effective Date (as defined in Clause 4,
     the Borrower, the Continuing Randgold Completion Guarantors, the Retiring
     Randgold Completion Guarantor and the Lender Parties agree that the
     Original Loan Agreement shall be amended and restated so as to take effect
     in the form set out in Exhibit A to this Agreement (the "AMENDED AND
     RESTATED LOAN AGREEMENT").

<PAGE>

3.   AMENDMENTS TO THE RANDGOLD GUARANTEE AGREEMENT

     With effect from the Restatement Effective Date:

     (a)     the Continuing Randgold Completion Guarantors, the Retiring
             Randgold Completion Guarantor and the Lender Parties agree that the
             Retiring Randgold Completion Guarantor shall be released from its
             obligations under the Randgold Guarantee Agreement;

     (b)     the Continuing Randgold Completion Guarantors hereby confirm that
             their obligations under the Randgold Guarantee Agreement shall
             continue in full force and effect and that such obligations shall
             be joint and several;

     (c)     the Continuing Randgold Completion Guarantors and the Lender
             Parties hereby agree that the Randgold Guarantee Agreement shall be
             amended as set forth below:

             (i)     the definition of the term "Guaranteed Obligations" shall
                     be deleted in its entirety and replaced with the following:

                     "Guaranteed Obligations" means (a) all Obligations of the
                     Borrower and (b) all obligations of Morila Holdings under
                     any Instrument entered into by it with a Lender in
                     connection with any Hedging Obligations, in each case
                     now or hereafter existing".

             (ii)    Section 3.3 shall be amended and restated in full to read
                     as set forth below:

                     "3.3 Economic Completion

                     Without limiting any other provision of this Agreement, the
                     Guarantors hereby irrevocably and unconditionally undertake
                     and agree (as primary obligors) that Economic Completion
                     will take place by no later than 31 December, 2001. The
                     Guarantors recognise that it is a condition to the
                     occurrence of Economic Completion that no Default shall
                     then have occurred and be continuing (in particular, any
                     Default in connection with the financial tests referred to
                     in Clause 9.1.19 of the Loan Agreement). As part of its
                     general undertakings contained in this Clause and elsewhere
                     in this Agreement, the Guarantors will ensure, on or prior
                     to 31 December, 2001 (and whether by way of a cash Capital
                     Contribution, the advance of Approved Subordinated
                     Indebtedness or otherwise in a manner which is consistent
                     with the Loan Documents) that the financial tests referred
                     to in Clause 9.1.19 of the Loan Agreement are capable of
                     being complied with on each Calculation Date scheduled to
                     occur after 31 December, 2001. In addition, the Guarantors
                     also undertake that, as at the Release Date, the amount
                     standing to the credit of the Debt Service Reserve Account
                     shall not be less than the Required Debt Service Reserve
                     Balance.";

                                      -2-

<PAGE>

             (iii)   Section 3.6 shall be deleted;

             (iv)    the phrase "seventy-five percent (75%)" contained in the
                     penultimate line of Section 3.7 shall be deleted and
                     replaced with the phrase "forty percent (40%)"; and

             (v)     the phrase "eighty percent (80%)" contained in the
                     penultimate and last lines of Section 3.8, shall be deleted
                     and replaced with the phrase "forty percent (40%)".

4.   CONDITIONS TO EFFECTIVENESS

     Both this Agreement and the Amended and Restated Loan Agreement shall be
     and become effective on the date (the "RESTATEMENT EFFECTIVE DATE") when
     the Agent shall have:

     (a)     received counterparts of this Agreement, duly executed by
             authorised officers of each of the Borrower, the Continuing
             Randgold Completion Guarantors, the Retiring Randgold Completion
             Guarantor, the Lenders, the Arrangers, the Co-Arrangers and the
             Agent; and

     (b)     confirmed to the Borrower that it has received all of the documents
             and evidence listed in the First Schedule hereto and that each is,
             in form and substance, satisfactory to the Agent. Except as
             expressly amended by this Agreement, each of the Exhibits to
             the Original Loan Agreement and each of the other Loan Documents
             shall continue in full force and effect as in the form attached to
             the Original Loan Agreement or, as the case may be, as originally
             executed.

5.   FEES

     The parties hereto agree that each Lender shall receive its amendment fee
     in the amount of U.S.$.10,000 within five (5) Business Days of the
     Restatement Effective Date.

6.   REFERENCES IN OTHER DOCUMENTS

     With effect from the Restatement Effective Date, references in the Original
     Loan Agreement, each other Facility Document and any other writing to the
     "LOAN AGREEMENT" shall be deemed to refer to the Amended and Restated
     Loan Agreement, whether or not reference is specifically made to this
     Agreement.

7.   CONFIDENTIALITY OBLIGATIONS

     At all times during the continuance of this Agreement and after the
     termination hereof (however caused) each of the Continuing Randgold
     Completion Guarantors, the Retiring Randgold Completion Guarantor and the
     Lender Parties shall and shall procure that their respective officers,
     employees, agents and advisers shall keep secret and confidential and not
     without prior written consent of the Borrower disclose to any

                                      -3-

<PAGE>

     third party or make use of for their own purposes (otherwise than in the
     context of an addition to the general experience, knowledge or expertise of
     each of the Continuing Randgold Completion Guarantors, the Retiring
     Randgold Completion Guarantor and the Lender Parties) any of the
     confidential information, reports or documents supplied by or on behalf of
     the Borrower or in the course of the negotiations leading to this Agreement
     or any of the calculations made or conclusions or determinations reached in
     accordance therewith.

8. PERMITTED DISCLOSURE

     Any Continuing Randgold Completion Guarantor, the Retiring Randgold
     Completion Guarantor or any Lender Party shall be entitled to disclose any
     such confidential information, report, documentation, calculations,
     conclusion or determination to any other of the Continuing Randgold
     Completion Guarantors, the Retiring Randgold Completion Guarantor or the
     Lender Parties or to their respective professional advisers (including the
     Independent Engineer and the Insurance Consultant) or to the extent
     permitted by Applicable Law (after reasonable prior notice to the
     Borrower);

     (a)     in any proceedings arising out of or in connection with this
             Agreement to the extent reasonably considered by any Continuing
             Randgold Completion Guarantor, the Retiring Randgold Completion
             Guarantor or any Lender Party to be desirable to protect its
             interests;

     (b)     to any prospective assignee or sub-participant subject to obtaining
             an undertaking from such prospective assignee or sub-participant in
             the terms of this Clause;

     (c)     if required to do so by an order of any court of competent
             jurisdiction;

     (d)     in pursuance of any procedure for discovery of documents in any
             proceedings before any such court;

     (e)     pursuant to any law or regulation having the force of law or with
             which the relevant Continuing Randgold Completion Guarantor, the
             Retiring Randgold Completion Guarantor or the relevant Lender Party
             is accustomed to comply; or

     (f)     pursuant to a requirement of any authority with whose requirements,
             of the nature and to the extent in question, the relevant Lender
             Party is accustomed to comply;

     and any of the Continuing Randgold Completion Guarantors, the Retiring
     Randgold Completion Guarantor or any Lender Party shall be entitled so to
     disclose or use any such matter if the information contained therein shall
     have emanated bona fide from some person other than any Obligor or any
     agent of any of them, and such Continuing Randgold Completion Guarantor,
     the Retiring Randgold Completion Guarantor or such Lender Party would but
     for the preceding provisions of this Clause be free so to disclose or use
     the same.

                                      -4-

<PAGE>

9.   CONFIRMATION

     The Borrower, the Continuing Randgold Completion Guarantors, the Retiring
     Randgold Completion Guarantor and the Lender Parties confirm that the
     Original Loan Agreement remains in full force and effect save as amended
     pursuant to this Agreement.

10.  COUNTERPARTS

     This Agreement may be executed and delivered in any number of counterparts.
     each of which, when so executed and delivered, shall be an original, but
     all of which together shall constitute one agreement binding on all of the
     parties to this Agreement.

11.  GOVERNING LAW; ENTIRE AGREEMENT; JURISDICTION

     (a)     This Agreement and all matters and disputes relating hereto shall
             be governed by, and construed in accordance with, English law.

     (b)     This Agreement constitutes the entire understanding among the
             parties hereto with respect to the subject matter hereof and
             supersedes any prior agreements, written or oral, with respect
             thereto.

     (c)     The parties hereto hereby irrevocably agree that the courts of
             England shall have non-exclusive jurisdiction to hear and determine
             any suit action or proceeding (collectively, "PROCEEDINGS"), and
             to settle any disputes, which may arise out of or in connection
             with this Agreement and each other Loan Document and, for such
             purposes, irrevocably submits to the non-exclusive jurisdiction of
             such courts.

     (d)     Each of the Borrower, the Continuing Randgold Completion
             Guarantors, the Retiring Randgold Completion Guarantor and the
             Lender Parties consents generally in respect of any Proceedings to
             the giving of any relief or the issue of any process in connection
             with such Proceedings including, without limitation, the making,
             enforcement or execution against any property or assets whatsoever
             of any order or judgment which may be made or given in such
             Proceedings.

                                      -5-

<PAGE>

The parties hereto have caused this Agreement to be duly executed and delivered
as a deed on the day and year first above written.

THE BORROWER

SOCIETE DES MINES DE MORILA
S.A.

/s/ P L Turner       S Cassim
__________________________________
By:

__________________________________
Name Printed: P L TURNER  S CASSIM

__________________________________
Title:  DIRECTORS

                                      -6-

<PAGE>

THE CONTINUING RANDGOLD COMPLETION GUARANTORS

RANDGOLD RESOURCES LIMITED

/s/ David Ashworth
__________________________
By:

      DAVID ASHWORTH
__________________________
Name Printed:

          DIRECTOR
__________________________
Title:

MORILA LIMITED

/s/ David Ashworth
__________________________
By:

      DAVID ASHWORTH
__________________________
Name Printed:

          DIRECTOR
__________________________
Title:

                                      -7-

<PAGE>

THE RETIRING RANDGOLD COMPLETION GUARANTOR

RANDGOLD & EXPLORATION
COMPANY LIMITED

/s/ David Ashworth
__________________________
By:

      DAVID ASHWORTH
__________________________
Name Printed:

          DIRECTOR
__________________________
Title:

                                      -8-

<PAGE>

THE LENDER PARTIES

per pro N M ROTHSCHILD & SONS
LIMITED, as the Agent, an Arranger and
a Lender

__________________________
By: /s/ C. Coleman
__________________________
Name Printed: C. COLEMAN
__________________________
Title: DIRECTOR

__________________________
By: /s/ Judith Vince
__________________________
Name Printed: Judith Vince
__________________________
Title: Assistant Company Secretary

                                      -9-

<PAGE>

STANDARD BANK LONDON
LIMITED, as an Arranger and a Lender

/s/ Trevor Reid
__________________________
By:

    TREVOR REID
__________________________
Name Printed:

HEAD OF RESOURCE BANKING
__________________________
Title:

/s/ D.M. Newport
__________________________
By:

    D.M. Newport
__________________________
Name Printed:

    Head of mining finance
__________________________
Title:

                                      -10-

<PAGE>

FORTIS BANK (NEDERLAND) N.V., as
a Co-Arranger and a Lender

__________________________
By: /s/ Peter Boogers
__________________________
Name Printed: Peter Boogers
__________________________
Title: Senior Manager

__________________________
By: /s/ Dirk Meulemeester
__________________________
Name Printed: Dirk Meulemeester
__________________________
Title: Director

                                      -11-

<PAGE>

BAYERISCHE HYPO-UND
VEREINSBANK AG, as a Co-Arranger
and a Lender

/s/ Geoffrey Oates
__________________________
By:

__________________________
Name Printed: GEOFFREY OATES

__________________________
Title: VICE-PRESIDENT

/s/ [ILLEGIBLE]
__________________________
By:

__________________________
Name Printed: [ILLEGIBLE]
__________________________
Title: MANAGING DIRECTOR

                                      -12-

<PAGE>

SOCIETE GENERALE, as a Co-Arranger
and a Lender

__________________________
By:

/s/ Judith Mosely
__________________________
Name Printed: JUDITH MOSELY
__________________________
Title: DIRECTOR, MINING PROJECT FINANCE

__________________________
By: /s/ Michael Jones
__________________________
Name Printed: MICHAEL JONES
__________________________
Title: MANAGER, MINING PROJECT FINANCE

                                      -13-

<PAGE>

                                FIRST SCHEDULE
                                    TO
                            SUPPLEMENTAL AGREEMENT

                         CONDITION PRECEDENT DOCUMENTS

1.   In relation to each of the Obligors, a copy certified as being a true,
     complete and up-to-date copy as at a date no earlier than the date of this
     Agreement, by a duly Authorised Representative of such Obligor, of a
     resolution of the board of directors of such Obligor approving the
     execution and delivery of this Agreement and the performance of the Amended
     and Restated Loan Agreement and the terms and conditions hereof and thereof
     and authorising an Authorised Representative of such Obligor to execute
     this Agreement and any other documents to be executed and delivered by such
     Obligor pursuant hereto.

2.   In relation to AngloGold Limited ("ANGLOGOLD"), a copy certified as being
     a true, complete and up-to-date copy as at a date no earlier than the date
     of this Agreement, by a duly authorised officer of AngloGold, of a
     resolution of the board of directors of AngloGold approving the execution,
     delivery and performance of the AngloGold Guarantee Agreement (as defined
     in paragraph 4 below) and the terms and conditions thereof and authorising
     an authorised officer of AngloGold to execute the AngloGold Guarantee
     Agreement and any other documents, including the Operating Agreement
     Guarantee, to be executed and delivered by AngloGold pursuant hereto or
     thereto.

3.   In relation to AngloGold Morila Holdings Limited ("ANGLOGOLD (BVI)"), a
     copy certified as being a true, complete and up-to-date copy as at a date
     no earlier than the date of this Agreement, by a duly authorised officer of
     AngloGold (BVI), of a resolution of the board of directors of AngloGold
     (BVI) approving the execution, delivery and performance of each of the
     AngloGold Security Agreements (as defined in the Amended and Restated Loan
     Agreement) and the terms and conditions thereof and authorising an
     authorised officer of AngloGold (BVI) to execute each of the AngloGold
     Security Agreements (as so defined) and any other documents to be executed
     and delivered by AngloGold (BVI) pursuant hereto or thereto.

4.   A counterpart of the Guarantee Agreement in substantially the form set out
     in the Second Schedule hereto (the "ANGLOGOLD GUARANTEE AGREEMENT"), duly
     executed and delivered by AngloGold.

5.   An opinion of Webber: Wentzel Bowens, legal advisers in South Africa to
     AngloGold, in substantially the form set out in Part 1 of the Third
     Schedule hereto.

6.   An opinion of Mayer, Brown & Platt, legal advisers in England to the Lender
     Parties, in substantially the form set out in Part 2 of the Third Schedule
     hereto.

7.   A letter(s) executed by St James's Corporate Services Ltd, confirming its
     appointment as process agent for AngloGold in accordance with Clause 7.5 of
     the AngloGold Guarantee Agreement and Clause 11.2(a) of the Operating
     Agreement Guarantee.

                                      -14-

<PAGE>

8.   Evidence satisfactory to the Agent that the Political Risk Insurance shall
     continue in full force and effect following the effectiveness and
     implementation of this Agreement and the AngloGold Guarantee Agreement.

9.   Evidence of the issue of all Approvals (including any relevant Approvals
     from the Reserve Bank of South Africa and from the Government of Mali)
     which are required (a) to enable AngloGold to enter into, and perform its
     obligations under, the AngloGold Guarantee Agreement, and (b) to enable the
     Original Loan Agreement to be amended and restated in the manner
     contemplated by this Agreement.

10.  A certificate of the Secretary or similar officer of the Operator (as
     defined in the Amended and Restated Loan Agreement) as to the incumbency
     and signature of those of its officers authorised to act with respect to
     the Completion Certificates and each other document to be executed by it
     and each other matter contemplated by the Amended and Restated Loan
     Agreement, upon which certificate each Lender Party may conclusively rely
     until it shall have received a further certificate of the Secretary or
     similar officer of the Operator (with prospective effect only) cancelling
     or amending such prior certificate.

11.  A Deed of Amendment to the Borrower Security Agreement (Offshore Assets),
     pursuant to which (a) the Operating Agreement is included as an Assigned
     Agreement under (and as defined in) the Borrower Security Agreement
     (Offshore Assets), and (b) the Obligations of Morila Holdings under the
     Loan Documents are included as Liabilities under (and as defined in) the
     Borrower Security Agreement (Offshore Assets), duly executed and delivered
     by the Borrower and the Agent.

12.  A Notice of Assignment to the Operator to evidence the assignment of the
     Borrower's present and future right, title and interest under the Operating
     Agreement as security pursuant to the Borrower Security Agreement
     (Offshore Assets).

13.  A Letter of Acknowledgement from the Operator to evidence the Operator's
     acknowledgement and consent to the assignment of the Borrower's present
     future right, title and interest under the Operating Agreement as security
     pursuant to the Borrower Security Agreement (Offshore Assets).

14.  A Step-In and Acknowledgement Agreement, executed by the Operator, the
     Borrower and the Agent, pursuant to which the Operator (a) acknowledges
     and consents to the security created by the Borrower Security Agreement
     (Offshore Assets) over the right, benefit and interest of the Borrower
     under the Operating Agreement and (b) grants the Agent the right to assume
     the rights and obligations of the Borrower under the Operating Agreement
     upon the occurrence of a default by the Borrower.

15.  A counterpart of the Operating Agreement Guarantee in substantially the
     form set out in the Fourth Schedule hereto, duly executed and delivered by
     AngloGold.

16.  A Deed of Amendment to the RRL Security Agreement, pursuant to which the
     Obligations of Morila Holdings under the Loan Documents are included
     as Liabilities

                                      -15-

<PAGE>

     under (and as defined in) the RRL Security Agreement, duly executed and
     delivered by RRL and the Agent.

                                      -16-

<PAGE>

                                                                       EXHIBIT A
                                                                 TO SUPPLEMENTAL
                                                                       AGREEMENT
                             Dated 21 December, 1999

                         SOCIETE DES MINES DE MORILA S.A.
                               as the Borrower

                          RANDGOLD RESOURCES LIMITED
                   [RANDGOLD & EXPLORATION COMPANY LIMITED](1)
                               MORILA LIMITED(2)
                     as the Randgold Completion Guarantors

                 VARIOUS BANKS AND OTHER FINANCIAL INSTITUTIONS
                                as the Lenders

                        N M ROTHSCHILD & SONS LIMITED
                        STANDARD BANK LONDON LIMITED
                              as the Arrangers

                      BAYERISCHE HYPO-UND VEREINSBANK AG
                       [FORTIS BANK (NEDERLAND) N.V.](3)
                             [SAMPO BANK PLC](4)

                              SOCIETE GENERALE
                            as the Co-Arrangers

                                     and

                          N M ROTHSCHILD & SONS LIMITED
                          as the Agent for the Lenders

                  _____________________________________________

                                 LOAN AGREEMENT

                  _____________________________________________

                                    MAYER
                                    BROWN
                                    &PLATT

                              Bucklersbury House
                           3 Queen Victoria Street
                               London, ECAN 8EL
                           Telephone: 020 7246 6200
                              Fax: 020 7329 4465
                             Reference: 99514374

-----------------------------

(1)    Released from its obligations pursuant to the Supplemental Agreement.

(2)    Previously called Randgold Resources (Morila) Limited.

(3)    Previously called Mees Pierson N.V.

(4)    Previously called Leonia Bank plc. Sampo Bank plc has transferred its
       interest under the Loan Agreement to Standard Bank London Limited.

<PAGE>

<TABLE>
<CAPTION>
                                         TABLE OF CONTENTS
CLAUSE                                                                            PAGE
       <S>    <C>                                                                   <C>
       1.     DEFINITIONS............................................................3

              1.1     Defined Terms..................................................3
              1.2     Additional Definitions........................................28
              1.3     Interpretation................................................30
              1.4     Use of Defined Terms..........................................31
              1.5     Cross-References..............................................31
              1.6     Accounting and Financial Determinations.......................31
              1.7     Change in Accounting Principles...............................31
              1.8     Dollar Equivalency Determinations.............................32
              1.9     Project Determinations, etc...................................32
              1.10    General Provisions as to Certificates and Opinions, etc.......33

       2.     COMMITMENTS; BORROWING AND INTEREST PERIOD
              SELECTION PROCEDURES, ETC.............................................34

              2.1     Commitments...................................................34
              2.2     Procedure for Making Loans....................................34
              2.3     Continuation Elections........................................35
              2.4     Cancellation..................................................36
              2.5     Records.......................................................36
              2.6     Funding.......................................................36

       3.     PRINCIPAL PAYMENTS; INTEREST..........................................37

              3.1     Principal Payments............................................37
              3.2     Interest Payments.............................................38
              3.3     Fees..........................................................40

       4.     PROJECT ACCOUNTS......................................................40

              4.1     Operating Account.............................................40
              4.2     Account in Mali...............................................41
              4.3     Debt Service Reserve Account..................................42
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<CAPTION>
                                         TABLE OF CONTENTS
                                             (continued)
CLAUSE                                                                            PAGE
       <S>    <C>                                                                   <C>
              4.4     General Provisions Relating to the Project Accounts...........43

       5.     INCREASED COSTS; TAXES; MARKET DISRUPTIONS;
              GENERAL PAYMENT PROVISIONS............................................46

              5.1     Dollars Unavailable...........................................46
              5.2     Increased Costs, etc..........................................47
              5.3     Funding Losses................................................47
              5.4     Capital Costs.................................................48
              5.5     Illegality....................................................49
              5.6     Taxes.........................................................49
              5.7     Mitigation....................................................51
              5.8     Payments, Computations, etc...................................51
              5.9     Redistribution of Payments....................................52
              5.10    Setoff........................................................53
              5.11    Application of Proceeds.......................................54
              5.12    Currency of Payment...........................................55

       6.     CONDITIONS PRECEDENT TO MAKING LOANS................................. 55

              6.1     Initial Loans.................................................55
              6.2     All Loans.....................................................61

       7.     REPRESENTATIONS AND WARRANTIES........................................62

              7.1     Organisation, Power, Authority, etc...........................62
              7.2     Due Authorisation; Non-Contravention..........................63
              7.3     Validity, etc.................................................63
              7.4     Legal Status..................................................64
              7.5     Financial Information.........................................64
              7.6     Absence of Default............................................64
              7.7     Litigation, etc...............................................64
              7.8     Materially Adverse Effect.....................................65
              7.9     Burdensome Agreements.........................................65
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                         TABLE OF CONTENTS
                                            (continued)
CLAUSE                                                                            PAGE
       <S>    <C>                                                                  <C>
              7.10    Taxes and Other Payments......................................65
              7.11    Mining Rights, Project Assets, Insurance......................66
              7.12    Ownership and Use of Properties; Liens........................66
              7.13    Subsidiaries..................................................66
              7.14    Intellectual Property.........................................67
              7.15    Technology....................................................67
              7.16    Approvals; Project Documents..................................67
              7.17    Adequacy of Information.......................................68
              7.18    Environmental Warranties......................................68
              7.19    Pari Passu....................................................70
              7.20    Royalties, etc................................................70

       8.     COVENANTS.............................................................71

              8.1     Certain Affirmative Covenants.................................71
              8.2     Certain Negative Covenants....................................86

       9.     EVENTS OF DEFAULT.....................................................94

              9.1     Events of Default.............................................94
              9.2     Action if Bankruptcy.........................................100
              9.3     Action if Other Event of Default.............................100
              9.4     Event of Default after Release Date..........................101

       10.    THE AGENT, THE ARRANGERS AND THE CO-ARRANGERS........................101

              10.1    Appointment..................................................101
              10.2    Reliance, etc................................................102
              10.3    Actions......................................................103
              10.4    Limitation on Actions........................................103
              10.5    Indemnification by Lenders...................................104
              10.6    Exculpation..................................................104
              10.7    Waiver.......................................................104
              10.8    Banking Activities...........................................105
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                         TABLE OF CONTENTS
                                            (continued)
CLAUSE                                                                            PAGE
       <S>    <C>                                                                  <C>
              10.9    Resignation and Replacement..................................105
              10.10   Discharge....................................................105
              10.11   Credit Decisions.............................................106
              10.12   Rothschild as the Agent......................................106
              10.13   Rothschild and SBL as Arrangers..............................106
              10.14   Interpretation...............................................107
              10.15   Agent to Conduct Proceedings.................................107
              10.16   Decisions by the Lenders.....................................107
              10.17   Manner of Reference to Lenders...............................108

      11.     MISCELLANEOUS........................................................108

              11.1    Waivers, Amendments, etc.....................................108
              11.2    Notices......................................................109
              11.3    Costs and Expenses...........................................110
              11.4    Indemnification..............................................111
              11.5    Survival.....................................................112
              11.6    Severability.................................................112
              11.7    Headings.....................................................113
              11.8    Counterparts, Effectiveness, etc.............................113
              11.9    Governing Law; Entire Agreement..............................113
              11.10   Assignments and Transfers by the Obligors....................113
              11.11   Assignments and Transfers by the Lenders; Additional Lender..113
              11.12   Other Transactions...........................................116
              11.13   Forum Selection and Consent to Jurisdiction..................116
              11.14   Waiver of Immunity...........................................117
              11.15   English Language.............................................117
              11.16   Entire Agreement.............................................117
              11.17   Confidentiality Obligations..................................117
              11.18   Permitted Disclosure.........................................118
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                         TABLE OF CONTENTS
CLAUSE                                                                            PAGE
       <S>                             <C>
       SCHEDULES

       SCHEDULE 1                      DISCLOSURE SCHEDULE
       SCHEDULE 2                      CASH FLOW SCHEDULE
       SCHEDULE 3                      HEDGING POLICY
       SCHEDULE 4                      FORM OF EXCESS CASH FLOW CALCULATION
                                       CERTIFICATE
</TABLE>

                                      -i-

<PAGE>

THIS LOAN AGREEMENT, dated 21 December, 1999 (as amended pursuant to the letter
agreement, dated 10 April, 2000 (the "LETTER AGREEMENT"), the supplemental
agreement, dated 15 June, 2001 (the "SUPPLEMENTAL AGREEMENT"), and as further
amended, modified or supplemented in accordance with the terms hereof, this
"AGREEMENT"), between:

(1)  SOCIETE DES MINES DE MORILA S.A., a company (societe anonyme) organised
     and existing under the laws of the Republic of Mali (the
     "BORROWER");

(2)  RANDGOLD RESOURCES LIMITED, a company incorporated under the laws of Jersey
     ("RRL")[, RANDGOLD & EXPLORATION COMPANY LIMITED, a company organised and
     existing under the laws of the Republic of South Africa ("RECL"),](5) and
     MORILA LIMITED(6), a company incorporated under the laws of Jersey
     ("MORILA HOLDINGS" and, collectively with RRL, the "RANDGOLD COMPLETION
     GUARANTORS");

(3)  the banking and/or financial institutions referred to on the signature
     pages hereof as the lenders (collectively, the "LENDERS");

(4)  N M ROTHSCHILD & SONS LIMITED, a bank organised and existing under the laws
     of England (in its individual capacity, "ROTHSCHILD") and STANDARD BANK
     LONDON LIMITED, a bank organised and existing under the laws of England (in
     its individual capacity, "SBL"), in their capacity as arrangers of the
     financing contemplated by this Agreement, (collectively, the
     "ARRANGERS");

(5)  BAYERISCHE HYPO-UND VEREINSBANK AG, [FORTIS BANK (NEDERLAND) N.V.](7),
     [SAMPO BANK PLC](8) and SOCIETE GENERALE, in their capacity as
     co-arrangers of the financing contemplated by this Agreement (collectively,
     the "CO-ARRANGERS"); and

(6)  Rothschild, in its capacity as the agent for the Lenders (in such capacity,
     the "AGENT").

WHEREAS:

(A)  The Borrower owns the Morila project comprising a gold deposit located
     approximately 180 kilometres southeast of Bamako in Mali in the
     Arrondissement of Sanso, Cercle of Bougouni and region of Sikasso and the
     Borrower proposes to construct and operate a mine and related facilities to
     mine and develop such deposit in accordance with the Development Plan (such
     development, the "Morila Project");

(B)  The Borrower has requested that the Lenders extend Commitments to the
     Borrower to make Loans denominated in Dollars available to the Borrower for
     the purpose of financing Project Costs incurred in the construction of the
     Morila Project;

------------------------------
(5)    Released from its obligations pursuant to the Supplemental Agreement.

(6)    Previously called Randgold Resources (Morila) Limited.

(7)    Previously called Mees Pierson N.V.

(8)    Previously called Leonia Bank plc. Sampo Bank plc has transferred its
       interest under the Loan Agreement to Standard Bank London Limited.

<PAGE>

(B)  The Borrower has requested that the Lenders extend Commitments to the
     Borrower to make Loans denominated in Dollars available to the Borrower for
     the purpose of financing Project Costs incurred in the construction of the
     Morila Project;

(C)  Each of the Lenders is willing, on the terms and conditions set forth
     herein, to extend its Commitment to make Loans to the Borrower;

(D)  (a)     RECL owns, indirectly, 61.9% of the shares of capital stock of RRL;

     (b)     at all times prior to the AngloGold Acquisition Date RRL
             owned, directly, one hundred percent (100%) of the shares of
             capital stock of Morila Holdings; and

     (c)     Morila Holdings owns (together with any directors qualifying
             shares held by directors of the Borrower as nominee for Morila
             Holdings (collectively "DIRECTORS QUALIFYING SHARES")), directly,
             eighty percent (80%) of the shares of capital stock of the
             Borrower;

(E)  In consideration of the Lender Parties agreeing to enter into this
     Agreement, as security for the due and punctual payment and
     performance of the Borrower's Obligations:

       (a)     the Borrower has agreed to grant a lien to the Agent (for the
               rateable benefit of the Lender Parties) over all of its right,
               title and interest in and to the Project Assets;

       (b)     RRL has agreed to grant a lien to the Agent (for the rateable
               benefit of the Lender Parties) over all of its right, title and
               interest in and to the shares of capital stock of Morila
               Holdings;

       (c)     Morila Holdings has agreed to grant a lien to the Agent (for the
               rateable benefit of the Lender Parties) over all of its right,
               title and interest in and to the share capital and voting rights
               of the Borrower;

       (d)     the holders of Approved Subordinated Indebtedness have, to the
               extent set forth in the relevant Subordination Agreements, agreed
               to fully subordinate each and every one of its rights in respect
               of indebtedness owing to them by the Borrower and RRL to the
               payment and performance of the Obligations of the Borrower and
               RRL, respectively; and

       (e)     the Completion Guarantors have agreed with the Lender Parties at
               all times prior to the Release Date to jointly and severally
               guarantee the due and punctual payment and performance of the
               Borrower's Obligations and to enter into certain other
               undertakings in favour of the Lender Parties, in each case as set
               forth in the Guarantee Agreements; and

(F)  On the AngloGold Acquisition Date, AngloGold Morila Holdings Limited, a
     company organised and existing under the laws of the British Virgin
     Islands ("ANGLOGOLD (BVI)")(and, a wholly owned subsidiary of AngloGold
     Limited, a company organised and existing under the laws of the Republic of
     South Africa ("ANGLOGOLD")), acquired fifty percent (50%) of the shares
     of capital stock of Morila Holdings and assumed all rights and obligations
     in respect of fifty percent (50%) of

                                      -2-

<PAGE>

     Approved Subordinated Indebtedness outstanding from the Borrower to RRL
     and, in connection therewith and in connection with the effectiveness of
     the Supplemental Agreement:

       (a)     AngloGold (BVI) has agreed:

               (i)     to grant a lien to the Agent (for the rateable benefit of
                       the Lender Parties) over all of its right, title and
                       interest in and to the shares of capital stock of
                       Morila Holdings; and

               (ii)    to the extent set forth in the relevant Subordination
                       Agreement, to fully subordinate each and every one of its
                       rights in respect of indebtedness owing to it by the
                       Borrower to the payment and performance Obligations of
                       the Borrower; and

       (b)     AngloGold has agreed, at all times prior to the Release Date, to
               guarantee the due punctual payment of the Borrower's Obligations
               and to enter into certain other undertakings in favour of the
               Lender Parties as set forth in the AngloGold Guarantee Agreement.

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy
whereof is hereby acknowledged by each party hereto, the parties hereto hereby
agree as follows:

1.   DEFINITIONS

1.1  DEFINED TERMS

     The following terms (whether or not underscored) when used in this
     Agreement, including its preamble and recitals, shall have the following
     meanings:

     "ACTUAL CASH FLOW" means, in relation to any period, the excess (if any)
     of:

     (a)     the excess of:

             (i)     total Dollars realised from sales (including sales
                     pursuant to hedging arrangements) of Gold from Production;
                     less

             (ii)    the aggregate amount in Dollars payable by way of
                     production royalties calculated and payable as a percentage
                     of Gold produced and sold in connection with the operation
                     of the Mine; less

     (b)     Project Costs, in each case calculated for such period.

     "AGENT" is defined in the preamble and shall include the Agent acting in
     its capacity as security trustee pursuant to any of the Security
     Agreements.

     "AGREEMENT" is defined in the preamble.

     "ANGLOGOLD" is defined in the sixth recital.

     "ANGLOGOLD ACQUISITION DATE" means 6 July, 2000.

                                      -3-

<PAGE>

     "ANGLOGOLD (BVI)" is defined in the sixth recital.

     "ANGLOGOLD DEBENTURE" means that certain Debenture, dated July 6, 2000,
     between AngloGold (BVI) and the Agent.

     "ANGLOGOLD GROUP" means AngloGold, its subsidiaries and subsidiary
     undertakings and their subsidiaries and subsidiary undertakings.

     "ANGLOGOLD GUARANTEE AGREEMENT" means the Guarantee Agreement between
     AngloGold and the Agent entered into in connection with the implementation
     of the Supplemental Agreement.

     "ANGLOGOLD SECURITY AGREEMENTS" means, collectively, the AngloGold
     Debenture and the AngloGold Subordination Agreement.

     "ANGLOGOLD SUBORDINATION AGREEMENT" means the agreement referred to in
     clause (c) of the definition of the term "Subordination Agreements".

     "APPLICABLE LAW" means, with respect to any person or matter, any
     supranational, national, federal, state, regional, tribal or local statute,
     law, rule, treaty, convention, regulation, order, decree, directive,
     consent decree, determination or other requirement (whether or not having
     the force of law but being one which a responsible organisation would
     regard as binding on it) relating to such person or matter and, where
     applicable, any interpretation thereof by any Governmental Agency having
     jurisdiction with respect thereto or charged with the administration or
     interpretation thereof.

     "APPLICABLE MARGIN" means:

     (a)     at all times prior to the Release Date one and one fifth percent
             (1.20%) per annum; and

     (b)     at any time on or after the Release Date, two percent (2.00%) per
             annum.

     "APPROVAL" means an approval, authorisation, license, permit, consent,
     filing or registration by or with any Governmental Agency or other person
     whether or not referred to in Item 1 ("APPROVALS") of the Disclosure
     Schedule.

     "APPROVED SUBORDINATED INDEBTEDNESS" means any intercompany indebtedness
     outstanding from the Borrower to either of RRL or AngloGold (BVI) and from
     RRL to either of RECL or (at any time on or prior to the AngloGold
     Acquisition Date) Barnex and which is, in each such case, subject to the
     terms and conditions of the Subordination Agreements.

     "ARRANGERS" is defined in the preamble.

     "AUTHORISED REPRESENTATIVE" means, relative to any Obligor or the
     Independent Engineer, those of its officers whose signatures and incumbency
     shall have been certified to the Agent pursuant to Clause 6.1.1 and
     relative to the Operator, those of its officers whose signatures and
     incumbency shall have been certified to the Agent pursuant to the First
     Schedule to the Supplemental Agreement.

                                      -4-

<PAGE>

     "BARNEX" means Barnato Exploration Limited, a company organised and
     existing under the laws of South Africa.

     "BARNEX LOAN AGREEMENT" means, collectively, the two agreements, dated 27
     August, 1999 and 10 December, 1999, and each between Barnex and RRL.

     "BASE CASE CASH FLOW MODEL" means the financial model, contained on a
     computer disk entitled "Morila Project - Base Case Cash Flow Model" and
     delivered by the Agent to the Lenders in connection with the implementation
     of the Supplemental Agreement.

     "BORROWER" is defined in the preamble.

     "BORROWER SECURITY AGREEMENT (FIXED ASSETS)" means the Security
     Agreement, dated on or about the date of the Supplemental Agreement,
     between the Borrower and the Agent.

     "BORROWER SECURITY AGREEMENT (MALI BANK ACCOUNT CHARGE)" means the
     Security Agreement between the Borrower, the Agent and the Project Account
     Bank (Mali), substantially in the form of Exhibit A-3 attached hereto.

     "BORROWER SECURITY AGREEMENT (MALI GOODWILL CHARGE)" means the Security
     Agreement between the Borrower and the Agent, substantially in the form of
     Exhibit A-1 attached hereto.

     "BORROWER SECURITY AGREEMENT (MALI EXPLOITATION PERMIT CHARGE)" means the
     Security Agreement between the Borrower and the Agent, substantially in the
     form of Exhibit A-2 attached hereto.

     "BORROWER SECURITY AGREEMENT (OFFSHORE ASSETS)" means the Security
     Agreement between the Borrower and the Agent, substantially in the form of
     Exhibit A-4 attached hereto.

     "BORROWING DATE" means a Business Day (occurring on or prior to the
     Commitment Termination Date and coinciding with the first day of an
     Interest Period with respect to the relevant Loans) on which Loans are to
     be made pursuant to Clause 2.2.

     "BORROWING REQUEST" means a loan request and certificate duly executed by
     an Authorised Representative of the Borrower, substantially in the form of
     Exhibit H attached hereto.

     "BUSINESS DAY" means:

     (a)     any day which is not a Saturday, Sunday, legal holiday or any other
             day on which banks are authorised or required to be closed in
             London, England, Amsterdam, The Netherlands or New York, New York;
             and/or

     (b)     relative to the calculation of the LIBO Rate, any day on which
             dealings in Dollars are carried on in the London interbank market;
             and/or

                                      -5-

<PAGE>

     (c)     relative to the determination of the London Gold Price or the
             determination of the Dollar equivalent of any amount based on the
             London Gold Price, any day on which dealings in Gold are carried on
             between members of the LBMA in London.

     "CALCULATION DATE" means each 31 March, 30 June, 30 September and 31
     December in each calendar year commencing with the first such date to occur
     after the Economic Completion Date.

     "CAPITAL CONTRIBUTION" means a cash contribution made (whether in cash or
     otherwise and whether directly or indirectly) by one person to the ordinary
     share capital or equity of another person.

     "CAPITAL EXPENDITURES" means, for any period and with respect to any
     person, the sum of:

     (a)     the aggregate amount of all expenditures of such person for fixed
             or capital assets (including expenditures incurred in connection
             with deferred development costs) made during such period which
             would be classified as capital expenditures;

     PLUS

     (b)     the aggregate amount of all Capital Leases which such person has
             entered into as lessee.

     "CAPITAL LEASES" means any lease of property (real or personal) which
     would be classified as a borrowing.

     "CASH EQUIVALENT INVESTMENT" means, at any time:

     (a)     securities maturing not more than twelve (12) months from the date
             of issue, which are issued by the government of any of Japan,
             Germany, France, the United Kingdom or the United States; or

     (b)     any negotiable certificate of deposit or bankers' acceptance (in
             either case, in certificated form and denominated in U.S. Dollars),
             maturing not more than one year after such time, which is issued
             (or, in the case of a bankers' acceptance, accepted) by a
             commercial banking institution organised under the laws of an OECD
             member country that has a combined capital and surplus and
             undivided profits of not less than U.S.$1,000,000,000 (or the
             equivalent thereof in any other currency).

     "CASH FLOW MODEL" means the computer model used to prepare the Cash Flow
     Schedule, a copy of which is held by the Agent and the Borrower and
     identified as Morila 2001 v2.0, as the same may be amended, modified or
     supplemented from time to time as a result of changes thereto made pursuant
     to Clause 1.9(b)(ii).

     "CASH FLOW SCHEDULE" means the schedule of projected Future Net Cash Flow
     of the Morila Project produced from the Cash Flow Model, currently in the
     form of Schedule 2 attached hereto, and as the same may be amended,
     modified or

                                      -6-

<PAGE>

     supplemented from time to time as a result of changes in any of parameters
     contemplated by the Cash Flow Model.

     "CASH SWEEP CALCULATION DATE" means, in connection with each Cash Sweep
     Calculation Period, the last Business Day of the second calendar month
     immediately following the last Business Day of such Cash Sweep Calculation
     Period.

     "CASH SWEEP CALCULATION PERIOD" means, initially, the period commencing
     with the first Business Day after the Release Date and ending on the last
     Business Day of the calendar quarter in which such Business Day occurs, and
     thereafter each consecutive calendar quarter.

     "CFA" means the lawful currency of Mali as in effect from time to
     time.

     "CHANGE IN CONTROL" means any of:

     (a)     the failure of Morila Holdings to own (and to have sole power to
             vote and dispose of), directly and free and clear of all liens
             (other than the lien in favour of the Lender Parties granted
             pursuant to the Morila Holdings Security Agreement and inclusive of
             Directors Qualifying Shares), at least eighty percent (80%) of the
             share capital (however designated) of the Borrower;

     (b)     the failure of RRL and AngloGold (BVI) to own (and to have sole
             power to vote and dispose of), collectively, directly and free and
             clear of all liens (other than the liens in favour of the Lender
             Parties granted pursuant to the RRL Security Agreement and the
             AngloGold Debenture), one hundred percent (100%) of the share
             capital (however designated) of Morila Holdings;

     (c)     the failure of AngloGold (BVI) to own (and to have sole power to
             vote and dispose of), directly or indirectly and free and clear of
             all liens (other than the liens in favour of the Lender Parties
             granted pursuant to the AngloGold Debenture) at least fifty percent
             (50%) of the share capital (however designated) of Morila Holdings;
             or

     (d)     the failure of AngloGold to own (and to have sole power to vote and
             dispose of) directly or indirectly and free and clear of all liens,
             one hundred percent (100%) of the share capital (however
             designated) of AngloGold (BVI).

     "CO-ARRANGERS" is defined in the preamble.

     "COMMITMENT" means, relative to any Lender, such Lender's obligation to
     make and to maintain its Loans, in each case pursuant to the terms and
     subject to the conditions of this Agreement.

     "COMMITMENT AMOUNT" means:

     (a)     in relation to any Lender party hereto on the Supplemental
             Agreement Effective Date, the amount set forth opposite its name
             on the signature

                                      -7-

<PAGE>

          pages hereto under the heading "COMMITMENT AMOUNT" as the same may be
          reduced pursuant to this Agreement; and

     (b)  in relation to a Transferee Lender which becomes a Lender
          subsequent to the Supplemental Agreement Effective Date, the amount
          (if any) of such Commitment Amount assumed from the Transferor Lender
          pursuant to the Transfer Certificate by which such Transferee Lender
          became a party to this Agreement as a Lender, in each case as such
          amount may be adjusted pursuant to any other Transfer Certificate to
          which such Lender or Transferee Lender, as the case may be, is a
          party.

     "COMMITMENT TERMINATION DATE" means the date which is five (5) Business
     Days after the occurrence of the Supplemental Agreement Effective Date or
     if earlier, the date of the termination of each Commitment pursuant to
     Clause 9.2 or 9.3.

     "COMMITTED HEDGING AGREEMENTS" means net forward sale, spot deferred sales
     or other contracts (including put options when any Obligor or AngloGold (or
     any subsidiary of AngloGold) is the buyer of Gold and call options where
     any Obligor or AngloGold (or any subsidiary of AngloGold) is the seller of
     Gold) providing for a binding commitment to sell Gold.

     "COMPLETION CERTIFICATES" means each of the Economic Completion Certificate
     and the Mechanical Completion Certificate.

     "COMPLETION DEPOSIT ACCOUNT" means the account maintained by RRL with the
     Agent for the purpose of maintaining the cash deposit referred to in Clause
     6.1.7(e).

     "COMPLETION GUARANTOR PRIOR CONTRIBUTION" is defined in Clause 6.1.7(d).

     "COMPLETION GUARANTORS" means, collectively, the Randgold Completion
     Guarantors and AngloGold.

     "COMPLIANCE CERTIFICATE" means a certificate duly executed by an Authorised
     Representative of the Borrower and the Operator substantially in the form
     of Exhibit J attached hereto.

     "CONSTRUCTION CONTRACT" means, collectively:

     (a)  the "CONTRACT FOR DESIGN, SUPPLY, CONSTRUCTION AND COMMISSIONING
          OF MORILA GOLD PROCESSING PLANT AND INFRASTRUCTURE" dated 11 November,
          1999, between RRL and Metallurgical Design and Management Ltd; and

     (b)  the undertaking (Reference: C274; GM/jr/17845), from Metallurgical
          Design and Management (Pty) Ltd. in favour of RRL.

     "CONSTRUCTION CONTRACTOR" means, collectively, Metallurgical Design and
     Management Ltd. and Metallurgical Design and Management (Pty) Ltd. or such
     other company (or companies) as may be appointed to construct the Mine in
     accordance with the proviso to Clause 9.1.14.

                                      -8-

<PAGE>

     "CONTINGENT LIABILITY" means any agreement, undertaking or arrangement by
     which any person guarantees, endorses or otherwise becomes or is
     contingently liable upon (by direct or indirect agreement, contingent or
     otherwise, to provide funds for payment, to supply funds to, or otherwise
     to invest in, a debtor, or otherwise to assure a creditor against loss in
     respect of) the indebtendness, obligation or any other liability of any
     other person (other than by endorsements of instruments in the course of
     collection), or guarantees the payment of dividends or other distributions
     upon the shares of any other person. The amount of any person's obligation
     under any Contingent Liability shall (subject to any limitation set forth
     therein) be deemed to be the outstanding principal amount (or maximum
     principal amount, if larger) of the debt, obligation or other liability
     guaranteed thereby.

     "CONTINUATION NOTICE" means a notice of continuation and certificate duly
     executed by an Authorised Representative of the Borrower, substantially in
     the form of Exhibit I attached hereto.

     "CONTRACTUAL OBLIGATION" means, relative to any person, any provision of
     any security issued by such person or of any Instrument or undertaking to
     which such person is a party or by which it or any of its property is
     bound.

     "DEBT SERVICE RESERVE ACCOUNT" is defined in Clause 4.3(a).

     "DEFAULT" means any Event of Default or any condition or event which, after
     notice, lapse of time, the making of any required determination or any
     combination of the foregoing, would constitute an Event of Default.

     "DEVELOPMENT PLAN" means, collectively the Feasibility Study, the Technical
     Review and the Base Case Cash Flow Model. In the event of any inconsistency
     between the contents of the Feasibility Study and the contents of the
     Technical Review, the latter shall govern for all purposes of this
     Agreement.

     "DIRECTORS QUALIFYING SHARES" is defined in the fourth recital.

     "DISCLOSURE SCHEDULE" means the Disclosure Schedule attached hereto as
     Schedule 1.

     "DISCOUNT RATE" means, in connection with the calculation on any date of
     Present Value of Future Net Cash Flow for any current or future Calculation
     Date, an interest rate per annum in the amount of the sum of:

     (a)  the average daily LIBO Rate (determined for nominal Interest
          Periods of six (6) months) for the six (6) month period ending on such
          date of calculation as certified by the Agent;

     PLUS

     (b)  the Applicable Margin as in effect on the relevant Calculation
          Date.

     "DOLLAR" and the sign "U.S.$" mean lawful money of the United States of
     America.

                                      -9-

<PAGE>

     "DOLLAR LENDING OFFICE" means:

     (a)  with respect to each Lender, the office of such Lender designated
          as such below its signature hereto or such other office of such Lender
          as may be designated from time to time by notice from such Lender to
          the Agent and the Borrower; and

     (b)  with respect to the Agent, the office of the Agent designated as
          such from time to time by notice to the Borrower and each Lender.

     "ECONOMIC COMPLETION" means the achievement of certain production,
     shipment, economic and legal criteria as set out in the Economic Completion
     Certificate (or such other alternative criteria as the Lenders may agree
     with the Borrower from time to time).

     "ECONOMIC COMPLETION CERTIFICATE" means a certificate (together with all
     attachments thereto) duly executed in one or more counterparts by an
     Authorised Representative of the Borrower, the Operator and the Independent
     Engineer, substantially in the form of Exhibit F-4 attached hereto as the
     same may be amended pursuant to Clause 1.9(b)(iii) or in such other form as
     the Lenders may consent to in order to reflect any alternative criteria of
     the nature referred to in the definition of Economic Completion).

     "ECONOMIC COMPLETION DATE" means the first Business Day immediately
     following the day on which the Agent shall have received:

     (a)  counterparts of the Economic Completion Certificate executed by
          each person referred to in the definition thereof; and

     (b)  a Compliance Certificate calculated (on the basis of the Cash Flow
          Schedule as then in effect (including any changes thereto arising as a
          result of the circumstances referred to in Clause 1.9(b)(i)(y)) as at
          the proposed Economic Completion Date pursuant to Clause 8.1.1(c)
          together with, in each such case, an independent verification from the
          Independent Engineer in form reasonably satisfactory to the Agent with
          respect to:

            (x)  the statements and calculations contained in such Economic
                 Completion Certificate and Compliance Certificate; and

            (y)  the development of the Morila Project in a manner which is
                 consistent with the Development Plan.

     "EFFECTIVE DATE" is defined in Clause 11.8.

     "ENFORCEMENT EVENT" shall mean either:

     (a)  the occurrence of any Insolvency Default; or

     (b)  the acceleration of all or any portion of the outstanding
          Principal Amount of the Loans and/or other Obligations pursuant to
          Clause 9.2 or 9.3 as a result of the occurrence of any Event of
          Default.

                                      -10-

<PAGE>

     "ENVIRONMENTAL IMPACT STUDY" means the environmental report, dated 28
     February, 1999, prepared by Digby Wells & Associates.

     "ENVIRONMENTAL LAW" means any Applicable Law (including Law No.
     90-17/AN-RM, Law No. 86-42/AN-RM, Law No. 91-047/AN-RM, Decree No. 3564
     IGTLS-AOF, Law 92-013, Law 95-004, Law 95-031 and Law 95-033 in each case,
     of Mali) relating to or imposing liability or standards of conduct
     concerning the environment including laws relating to reclamation of land
     and waterways and laws relating to emissions, discharges, releases or
     threatened releases of pollutants, contaminants, chemicals, or industrial,
     toxic or hazardous substances or wastes into the environment (including
     ambient air, surface water, ground water, land surface or subsurface
     strata) or otherwise relating to the manufacture, processing, distribution,
     use, treatment, storage, disposal, transport or handling of pollutants,
     contaminants, chemicals, or industrial, toxic or hazardous substances or
     wastes.

     "ENVIRONMENTAL REVIEW STANDARDS" is defined in of Clause 7.19(a)(i).

     "ESTABLISHMENT CONVENTION" means, the Establishment Convention (Convention
     D'Etablissement), dated 28th April, 1992, between the Government of Mali
     and BHP Minerals International Inc. as amended by Amendment No. 1 thereto
     in the form attached as Schedule 5 to the Letter Agreement.

     "EVENT OF DEFAULT" is defined in Clause 9.1.

     "EXCESS CASH FLOW" means, in connection with any Cash Sweep Calculation
     Period, the excess (if any), of:

     (a)  the sum of:

          (i)   the Actual Cash Flow for such Cash Sweep Calculation Period;
                plus

          (ii)  Total Cash Balances as at the first Business Day of such Cash
                Sweep Calculation Period; less

     (b)  the amount credited to the Debt Service Reserve Account as at the
          last Business Day of such Cash Sweep Calculation Period.

     "EXCESS CASH FLOW CALCULATION CERTIFICATE" means a certificate in the form
     of Schedule 4 attached hereto executed by a senior financial Authorised
     Representative of the Borrower or similar officer of the Operator.

     "FEASIBILITY STUDY" means the "FEASIBILITY REPORT ON THE MORILA PROJECT,
     MALI", dated February, 1999, prepared by RRL and in the form provided to
     the Lender Parties in connection with their execution of this Agreement.

     "FINAL MATURITY DATE" means 31 December, 2005.

     "FISCAL QUARTER" means any quarter of a Fiscal Year.

     "FISCAL YEAR" means any period of twelve consecutive calender months ending
     on 31 December (or, in the case of the period ending on 31 December, 1999,
     the period of nine consecutive months ending on such date) and references
     to a Fiscal

                                      -11-

<PAGE>

     Year with a number corresponding to any calendar year (e.g., the "1999
     FISCAL YEAR") refer to the Fiscal Year ending on the 31 December occurring
     during such calendar year.

     "FUNDED DEBT SERVICE" means, for any period, the amount in Dollars which
     will be necessary in order to pay in full all principal of and interest and
     other amounts accruing in respect of Funded Indebtedness which (in the case
     of all such principal, interest or other amounts) have, are scheduled to,
     or otherwise are reasonably expected to, become due and payable during that
     period.

     "FUNDED INDEBTENDESS" means, at any date, the aggregate of the Principal
     Amount of all outstanding Loans at such date.

     "FUNDING PERCENTAGE" means, relative to any Lender and at any time, the
     ratio (expressed as a percentage) of:

     (a)  such Lender's Commitment Amount at such time to;

     (b)  the Total Commitment Amount at such time.

    "FUTURE NET CASH FLOW" means, for any period, the excess of:

     (a)  the Dollar equivalent (calculated at the date of determination of
          Future Net Cash Flow:

          (i)   in the case of any such ounces of Gold which are covered by
                a Required Hedging Agreement in effect on the relevant date of
                calculation, at the price for delivery of Gold specified in such
                Required Hedging Agreement (or, if no price other than a floor
                price for delivery of Gold is specified in such Required Hedging
                Agreement, the minimum price for the delivery of Gold referred
                to therein); and

          (ii)  in the case of all other such ounces of Gold, at the
                average London Gold Price for the six month period immediately
                preceding the date of calculation of Future Net Cash Flow)

          of the excess of (x) the total estimated ounces of Gold from
          Production during such period less (y) the aggregate payments of
          ounces of Gold payable (whether in cash or in kind) during such period
          by way of production royalties calculated by reference to a percentage
          of Gold produced and sold in connection with the operations of the
          Mine,

     LESS

     (b)  Project Costs for such period.

     "GAAP" is defined in Clause 1.6.

     "GOLD" means gold bullion measured in fine ounces troy weight.

                                      -12-

<PAGE>

     "GOVERNMENTAL AGENCY" means any supranational, national, federal, state,
     regional, tribal or local government or governmental department or other
     entity charged with the administration, interpretation or enforcement of
     any Applicable Law.

     "GROUP" means the AngloGold Group, the RRL Group, the Morila Holdings Group
     and, to the extent not included in the foregoing, the Relevant Group
     Companies, and "GROUP MEMBER" means any such entity.

     "GUARANTEE AGREEMENTS" means, collectively, the AngloGold Guarantee
     Agreement and the Randgold Guarantee Agreement.

     "HAZARDOUS MATERIAL" means any pollutant or contaminant or hazardous,
     dangerous or toxic chemical, material, substance or waste within the
     meaning of any Environmental Law.

     "HEDGING OBLIGATIONS" means, with respect to any person, all liabilities of
     such person under interest rate swap agreements, interest rate cap
     agreements and interest rate collar agreements, and all other agreements,
     options or arrangements designed to protect such person against
     fluctuations in interest rates, currency exchange rates or precious metals
     prices (including any Required Hedging Agreements).

     "HEDGING POLICY" means the agreed hedging policy in connection with the
     Morila Project attached hereto as Schedule 3.

     "IFC SYAMA PROJECT FINANCING" means the financing for the development of
     the Syama gold project in Mali owned by Societe des Mines de Syama S.A.,
     a direct subsidiary of RRL, made available pursuant to the Project Funds
     Agreement, dated 2 June, 1998, among Societe des Mines de Syama S.A., RRL
     and International Finance Corporation.

     "IMPERMISSIBLE QUALIFICATION" means, relative to the opinion or report of
     any independent certified public accountant or any independent chartered
     accountant as to any financial statement of any Obligor, any qualification
     or exception to such opinion or report:

     (a)   which suggests that such Obligor is not or may not be a "GOING
           CONCERN" or which is of a similar nature to the same;

     (b)   which suggests that there has been any limitations in the scope
           of examination of material matters relevant to such financial
           statement; or

     (c)   which questions the treatment or classification of any item in
           such financial statement and which, as a condition to its removal,
           would require an adjustment to such item the effect of which would be
           to cause an Event of Default to have occurred pursuant to Clause
           9.1.19.

     "INDEMNIFIED LIABILITIES" is defined in Clause 11.4.

     "INDEMNIFIED PARTIES" is defined in Clause 11.4.

                                      -13-

<PAGE>

     "INDEPENDENT ENGINEER" means Steffen, Robertson and Kirsten (U.K.) Ltd. or
     such other independent mining consultant as may be retained by the Agent
     (acting in consultation with the Required Lenders and agreed with the
     Borrower) for purposes of reviewing the technical aspects of the Morila
     Project on behalf of the Lender Parties.

     "INDEPENDENT ENGINEER'S CERTIFICATE" means a certificate duly executed by
     an Authorised Representative of the Independent Engineer, substantially in
     the form of Exhibit F-1 attached hereto.

     "INITIAL REPAYABLE INTERCOMPANY INDEBTEDNESS" means the excess of:

     (a)  the Completion Guarantor Prior Contribution; over

     (b)  U.S.$25,000,000.

     "INSOLVENCY DEFAULT" means any condition or event which, after notice,
     lapse of time, the making of any required determination or any combination
     of the following, would constitute an Event of Default of the nature
     referred to in Clause 9.1.6.

     "INSTRUMENT" means any contract, agreement, indenture, mortgage, document
     or writing (whether by formal agreement, letter or otherwise) under which
     any obligation is evidenced, assumed, or undertaken, or any lien (or right
     or interest therein) is granted or perfected or purported to be granted or
     perfected.

     "INSURANCE CONSULTANT" means the Bankrisk Services division of Marsh UK
     Ltd. or such other insurance adviser of international repute as shall be
     retained by the Agent (acting in consultation with the Required Lenders and
     agreed with the Borrower) on behalf of the Lenders.

     "INSURANCE CONSULTANT'S CERTIFICATE" means a certificate duly executed by
     the Insurance Consultant, substantially in the form of Exhibit F-2 attached
     hereto.

     "INSURANCE SUMMARY" is defined in Clause 6.1.6.

     "INTEREST PERIOD" means, relative to any Loan:

     (a)  initially, the period from the date such Loan is made to the day
          which numerically corresponds to the date one (1), three (3) or six
          (6) months thereafter (or such other date as agreed between all the
          Lenders and the Borrower) as the Borrower may irrevocably select in
          the Borrowing Request delivered pursuant to Clause 2.2 with respect to
          such Loan; and

     (b)  thereafter, each period from the last day of the immediately
          preceding Interest Period applicable to such Loan to the day which
          numerically corresponds to such date one (1), three (3) or six (6)
          months thereafter (or such other date as may be agreed between all the
          Lenders and the Borrower) as the Borrower may irrevocably select in
          its relevant Continuation Notice delivered pursuant to Clause 2.3;

     provided, however, that:

                                      -14-

<PAGE>

     (c)  absent the timely selection of an Interest Period for a then
          current Loan, the Borrower shall be deemed to have selected that the
          Loan be continued as a Loan of the same type for an Interest Period of
          one (1) month's or such other duration as shall be required in order
          to comply with the other provisions of this Agreement;

     (d)  if such Interest Period for any Loan would otherwise end on a day
          which is not a Business Day, such Interest Period shall end on the
          next following Business Day, unless such Business Day occurs in the
          next following calendar month, in which case such Interest Period
          shall end on the immediately preceding Business Day;

     (e)  where all or any portion of the Principal Amount of such Loan is
          to be repaid on a Principal Payment Date, the Borrower shall select,
          an Interest Period relating to a portion of such Loan in at least the
          amount scheduled to be repaid which ends on such Principal Payment
          Date;

     (f)  the final Interest Period for any Loan shall end not later than the
          Final Maturity Date; and

     (g)  the Agent shall be able to select Interest Periods satisfactory to
          it pursuant to Clause 3.2.2 or after any Enforcement Event.

     "INTERNATIONAL ACCOUNTING STANDARDS" means the International Accounting
     Standards promulgated by the International Accounting Standards Committee.

     "INVESTMENT" means, relative to any person:

     (a)  any loan or advance made by such person to any other person
          (excluding commission, travel and similar advances to officers and
          employees made in the ordinary course of business);

     (b)  any guarantee made or issued by such person; and

     (c)  any ownership or similar interest held by such person in any other
          person.

     The amount of any Investment shall be:

     (d)  in the case of clauses (a) and (c), the original principal or
          capital amount thereof less all returns of principal or equity thereon
          (and without adjustment by reason of the financial condition of such
          other person) and shall, if made by the transfer or exchange of
          property other than cash, be deemed to have been made in an original
          principal or capital amount equal to the fair market value of such
          property; and

     (e)  in the case of clause (b), subject to any limitation set forth in
          the relevant agreement, etc., the outstanding principal amount (or
          maximum outstanding principal amount, if larger) of the debt,
          obligation, or other liability guaranteed thereby or, if such
          principal amount is not stated therein, or determinable pursuant to
          the provisions thereof, the maximum liability reasonably anticipated
          in respect thereof as determined in good faith by the person obligated
          thereunder to the reasonable satisfaction of the Agent.

                                      -15-

<PAGE>

     "LBMA" means The London Bullion Market Association.

     "LENDER PARTIES" means, collectively, the Agent, the Arrangers, the
     Co-Arrangers and the Lenders.

     "LENDERS" is defined in the preamble.

     "LETTER AGREEMENT" is defined in the preamble.

     "LIBO RATE" means, relative to any Interest Period for any Loan (or,
     relative to any nominal interest period of six (6) months utilised in
     connection with any determination of the Discount Rate), the offered rate
     of interest per annum which appears on Telerate Page 3750 (or such other
     page or service in replacement thereof as may be utilised by banks
     generally from time to time for the purpose of displaying London interbank
     offered rates for deposits denominated in Dollars) as at 11:00 a.m.
     (London time) for the number of months (or other period) comprising such
     Interest Period (or, as the case may be, nominal six (6) months interest
     period), calculated at the date which is two (2) Business Days prior to
     the first day of such Interest Period (or, as the case may be, nominal six
     (6) months interest period); provided, however, that in the event that no
     such display rate is available for Dollars at such time, the Agent will
     request the principal London office of each Lender to provide the Agent
     with its quotation for offers of Dollar deposits to leading banks in the
     London interbank market for such period and in an amount comparable to the
     aggregate Principal Amount of such Lender's Loans, and the "LIBO RATE"
     shall equal the average (rounded upwards to the nearest four decimal
     places) of such quoted rates.

     "LOAN" is defined in Clause 2.1(a).

     "LOAN COVER RATIO" means, for any period, the ratio, expressed as a
     percentage, of:

     (a)  Future Net Cash Flow for such period

          to

     (b)  Funded Debt Service for such period.

     "LOAN DOCUMENT" means any of this Agreement, the Security Agreements, the
     Guarantee Agreements, the Operating Agreement Guarantee, the Step-In
     Agreements and each other Instrument executed by any Obligor, AngloGold or
     AngloGold (BVI) evidencing any obligation (monetary or otherwise) to any
     Lender Party in connection with and pursuant to this Agreement, the other
     Operative Documents and the transactions contemplated hereby and thereby
     and delivered to any Lender Party (including, at any time when any
     Commitment is outstanding or any Principal Amount of any Loan or any
     interest accrued thereon is then outstanding to any Lender Party, any
     Instrument in effect at such time in connection with a Hedging Obligation
     relating to Production and entered into between any Obligor, AngloGold or
     AngloGold (BVI) and any Lender which remains a Lender at relevant time,
     whether or not mentioned herein).

                                      -16-

<PAGE>

     "LOAN LIFE RATIO" means, at any date, the ratio, expressed as a percentage,
     of:

     (a)  the sum of Present Value of Future Net Cash Flow for the period
          commencing on such date and ending on the Final Maturity Date plus the
          amount standing to the credit of the Debt Service Reserve Account at
          such date;

          to

     (b)  Funded Indebtedness at such date.

     "LONDON GOLD FIXING" means a gold price fixing meeting among the members
     for the time being of the London gold market.

     "LONDON GOLD PRICE" means, on any day, the fixing price per fine ounce troy
     (in Dollars) for Gold as announced at the afternoon London Gold Fixing for
     such day and which appears on Reuters Page NMR-B on such day; provided,
     however, that if the afternoon London Gold Fixing shall not have occurred
     for such day, the "LONDON GOLD PRICE" for such day shall be the fixing
     price per fine ounce troy (in Dollars) for Gold as announced at the morning
     London Gold Fixing for such day or if the morning London Gold Fixing shall
     not have occurred for such day, the "LONDON GOLD PRICE" for such day shall
     be the publicly quoted price per fine ounce troy (in Dollars) for Gold on
     such other accessible international gold market (allowing for physical
     delivery of such Gold) as may be reasonably selected by the Agent; and
     provided, further, however, that in the event the Agent shall have been
     unable to select any other such international gold market, then the "LONDON
     GOLD PRICE" for such day shall mean such price as the Agent shall
     reasonably determine. In the event that such day is not a Business Day,
     then the "LONDON GOLD PRICE" shall be the London Gold Price on the most
     recently preceding Business Day.

     "MALI" means the Republic of Mali.

     "MALI CONSENT AGREEMENT" means the Protocol Agreement between the Minister
     of Finance and the Minister of Mines and Energy of the Government of Mali
     and the Agent in the form attached as Schedule 6 to the Letter Agreement.

     "MALI SECURITY AGREEMENTS" means, collectively, the Borrower Security
     Agreement (Mali Exploitation Permit Charge), the Borrower Security
     Agreement (Mali Goodwill Charge), the Borrower Security Agreement (Mali
     Bank Account Charge), the Morila Holdings Security Agreement, the Borrow
     Security Agreement (Fixed Assets) and all Instruments delivered pursuant to
     Clause 8.1.15 which are expressed to be governed by the laws of Mali.

     "MATERIALLY ADVERSE EFFECT" means the effect of any event or circumstance
     (including any reduction in the gold price) which, in the reasonable
     opinion of the Required Lenders:

     (a)  is or is likely to be materially adverse to the ability of any
          Obligor, AngloGold (BVI) or AngloGold to perform or comply with any of
          its obligations under the Operative Documents in a timely manner;

                                      -17-

<PAGE>

     (b)  is or is likely to be materially prejudicial to:

          (i)   the interests of the Lenders under the Loan Documents; or

          (ii)  the business, operations, financial condition or prospects of
                any of the Obligors, AngloGold (BVI) or AngloGold; or

          (iii) the Morila Project or the Project Assets.

     "MATERIAL PROJECT DOCUMENTS" means

     (a)  the Construction Contract;

     (b)  the Mining Contract;

     (c)  the Power Contract;

     (d)  the Establishment Convention;

     (e)  the Mining Concession;

     (f)  the Mali Consent Agreement;

     (g)  the Operating Agreement;

     (h)  the Shareholders Agreement; and

     (i)  the Refining Agreement.

     and any other document that the Borrower and the Agent agrees is a Material
     Project Document.

     "MATURITY" means, relative to any Loan, any date on which such Loan is
     stated to be due and payable, in whole or in part, whether by required
     repayment, prepayment, declaration, or otherwise.

     "MECHANICAL COMPLETION" means the achievement of certain production,
     shipment, economic and legal criteria referred to in the Mechanical
     Completion Certificate.

     "MECHANICAL COMPLETION CERTIFICATE" means a certificate (together with all
     attachments thereto) duly executed in one or more counterparts by an
     Authorised Representative of the Borrower, the Operator and the Independent
     Engineer, substantially in the form of Exhibit F-3 attached hereto.

     "MECHANICAL COMPLETION DATE" means the first Business Day immediately
     following the day on which the Agent shall have received:

     (j)  counterparts of the Mechanical Completion Certificate executed by
          each person referred to in the definition thereof; and

     (k)  a Compliance Certificate calculated (on the basis of the Cash Flow
          Schedule as then in effect (including any changes thereto arising as a
          result

                                      -18-

<PAGE>

          of the circumstances referred to in Clause 1.9(b)(i)(y)) as at the
          proposed Mechanical Completion Date pursuant to Clause 8.1.1(c)
          together with, in each such case, an independent verification from the
          Independent Engineer in form reasonably satisfactory to the Agent with
          respect to the statements and calculations contained in such
          Mechanical Completion Certificate and Compliance Certificate.

     "MINE" means all properties, assets or other rights, whether real or
     personal, tangible or intangible, now owned or leased or hereafter acquired
     by or for the benefit of the Borrower, which assets are used or intended
     for use in or forming part of the Morila Project (and, for the avoidance of
     doubt, shall include:

     (a)  the gold deposit described in the first recital; and

     (b)  all associated beneficiation facilities, together with all plant
          sites, waste dumps, ore dumps, crushing circuits, abandoned heaps,
          power supply systems and ancillary and infrastructure facilities
          located at the Morila Project which are used in connection with the
          operation thereof).

     "MINE OUTPUT" means all products from the Mine, including dore and Gold.

     "MINING CONCESSION" means Exploitation Permit No. 99/217/PM-RM granted in
     connection with the Morila Project by the Office of the Prime Minister of
     Mali on 4 August, 1999.

     "MINING CONTRACT" means the Mining Contract, dated as of 29 October, 1999,
     between the Mining Contractor and RRL.

     "MINING CONTRACTOR" means DTP Terrassement (SNC), or such other company (or
     companies) as may be appointed to conduct mining operations at the Mine in
     compliance with the proviso to Clause 9.1.14.

     "MINING RIGHTS" means all interests in the surface of any lands, the
     minerals in (or that may be extracted from) any lands, all royalty
     agreements, water rights, patented and unpatented mining claims, fee
     interests, mineral leases, mining licenses, profits-a-prendre, joint
     ventures and other leases, rights-of-way, inurements, licenses and other
     rights and interests used by or necessary to the Borrower to construct,
     develop and operate the Mine.

     "MONTHLY MINE REPORT" means a monthly report addressed to the Agent and the
     Lenders relating to the development of the Morila Project and reporting (on
     both a monthly and a cumulative basis) on committed Capital Expenditures,
     Production, Project Costs and other operating information (including,
     without prejudice to the other terms and conditions of this Agreement, any
     deviation from the Development Plan or current Cash Flow Schedule).

     "MORILA HOLDINGS" is defined in the preamble.

     "MORILA HOLDINGS GROUP" means Morila Holdings, its subsidiaries and
     subsidiary undertakings and their subsidiaries and subsidiary undertakings.

                                      -19-

<PAGE>

     "MORILA HOLDINGS SECURITY AGREEMENT" means that certain Security Agreement
     between Morila Holdings and the Agent substantially in the form of Exhibit
     A-6 attached hereto.

     "MORILA PROJECT" is defined in the first recital.

     "OBLIGATIONS" means, with respect to each Obligor and/or, as the case may
     be, AngloGold and/or AngloGold (BVI), all obligations of such Obligor
     and/or, as the case may be, AngloGold and/or AngloGold (BVI) with respect
     to the repayment or performance of all obligations (monetary or otherwise)
     of such Obligor and/or, as the case may be, AngloGold and/or AngloGold
     (BVI) arising under or in connection with this Agreement and each other
     Loan Document and where the term "OBLIGATIONS" is used without reference to
     a particular, such term means the Obligations of all Obligors, AngloGold
     and AngloGold (BVI).

     "OBLIGORS" means, collectively, the Borrower and the RandGold Completion
     Guarantors.

     "OECD" means the Organisation for Economic Cooperation and Development.

     "OPERATING ACCOUNT" is defined in Clause 4.1(a).

     "OPERATING AGREEMENT" means the Operator Agreement, dated 29 May, 2000,
     between the Borrower and the Operator.

     "OPERATING AGREEMENT GUARANTEE" means the Performance Guarantee between
     AngloGold and the Agent entered into in connection with the implementation
     of the Supplemental Agreement.

     "OPERATIVE DOCUMENTS" means, collectively, the Loan Documents and the
     Project Documents.

     "OPERATOR" means AngloGold Mali SA, a company organised and existing under
     the laws of Mali.

     "ORGANIC DOCUMENT" means with respect to:

     (a)  the Borrower, its charter and by-laws (Status);

     (b)  each of RRL and Morila Holdings, its memorandum and articles of
          association; and

     (c)  each Obligor, all shareholder agreements, voting trusts, and
          similar arrangements applicable to any of its authorised shares of
          capital stock or other equity interests.

     "ORIGINAL STEP-IN AGREEMENTS" is defined in Clause 6.1.4(b).

     "ORIGINAL SUBORDINATION AGREEMENTS" means those agreements referred to in
     clauses (a) and (b) of the definition of the term "SUBORDINATION
     AGREEMENTS".

                                      -20-

<PAGE>

     "OUNCE" means a fine ounce troy weight of gold bullion in a form readily
     tradeable with members of the LBMA from time to time.

     "PERCENTAGE" means, relative to any Lender and at any time:

     (a)  if any Loans are outstanding, the ratio (expressed as a
          percentage) of:

          (i)  the Principal Amount of such Lender's Loans at such time to;

          (ii) the Principal Amount of all the Lenders' Loans at such time or;

     (b)  if no Loans are outstanding, the ratio (expressed as a percentage)
          of:

          (i)  such Lender's Commitment Amount at such time to;

          (ii) the Total Commitment Amount;

          provided, however, that at any time when the Lenders shall have no
          further Commitments hereunder and all Obligations of each Obligor in
          connection with each Loan Document (excluding any Required Hedging
          Agreement entered into directly by the Borrower to which a Lender is a
          party) shall have been paid and performed in full then, to the extent
          any such Required Hedging Agreement shall then be outstanding, the
          term "PERCENTAGE" means, relative to any Lender which is a party to
          any such Instrument and at any time, the ratio (expressed as a
          percentage) of;

     (c)  the contingent net liabilities of the Borrower at such time to
          such Lender under all such Required Hedging Agreements to which such
          Lender is a party, to;

     (d)  the contingent net liabilities of the Borrower at such time to all
          Lenders under all such Required Hedging Agreements to which any Lender
          is a party.

     "POLITICAL RISK INSURANCE" means a policy of political risk insurance in
     form and substance satisfactory to the Lenders (including with respect to
     the issuer of such policy) naming the Lenders as beneficiaries (which term
     shall include any such policy which names the Agent or the Arrangers as
     insured and the Lenders as co-insured) and insuring the Lenders for such
     coverages and against such risks with respect to the Borrower's Obligations
     to pay the Principal Amount of (and interest accruing on and other amounts
     due in respect of) the Lenders' Loans as the Lenders shall reasonably
     require.

     "POLITICAL RISK INSURANCE RATE" means the per annum percentage rate payable
     by way of premium in connection with the issue and maintenance of the
     policy constituting Political Risk Insurance.

     "POWER CONTRACT" means, collectively:

     (a)  the Deferred Terms Agreement, dated 9 December, 1999, between the
          Borrower and Rolls-Royce Power Ventures Limited;

                                      -21-

<PAGE>

     (b)  the Energy Support Agreement, dated 9 December, 1999, between the
          Borrower and Operations d'Energie de Morila; and

     (c)  the support undertaking, dated 29 September, 1999, from Rolls-Royce
          plc in favour of RRL.

     "POWER CONTRACTOR" means, collectively, Rolls-Royce Power Ventures Limited,
     Operations d'Energie de Morila and Rolls-Royce plc or such other company
     (or companies) as may be appointed to supply power to the Mine in
     compliance with the proviso to Clause 9.1.14.

     "PRESENT VALUE OF FUTURE NET CASH FLOW" means, for any period (a
     "CALCULATION PERIOD"), the aggregate of discounted Future Net Cash Flow
     for such Calculation Period calculated as set forth in this definition.
     Each Calculation Period of six (6) months or more shall be divided into
     consecutive periods (each a "DISCOUNT PERIOD") of six (6) months (or, in
     the case of the last such period, the period commencing on the last day of
     the penultimate such Discount Period and ending on the last day of the
     Calculation Period), and shall be discounted, with respect to any Future
     Net Cash Flow scheduled to accrue during any Discount Period, at the
     Discount Rate as in effect on the date of calculation of Present Value of
     Future Net Cash Flow to the first day of such Calculation Period from the
     day which represents the mid-point of such Discount Period.

     "PRINCIPAL AMOUNT" means, with respect to any Loan outstanding (or to be
     outstanding) at any date, the aggregate principal amount (calculated in
     Dollars) of such Loan at such date.

     "PRINCIPAL PAYMENT DATE" means each 30 June and 31 December occurring
     during the period commencing on (and including) 30 June, 2001 and ending on
     (and including) the Final Maturity Date.

     "PROCESS AGENT" is defined in Clause 11.13(c).

     "PROCESS AGENT ACCEPTANCE" means a letter from the Process Agent to the
     Agent, substantially in the form of Exhibit G attached hereto.

     "PRODUCTION" means, for any period, the number of ounces of Gold contained
     in dore which have been produced, or (in the case of any period or portion
     thereof to occur in the future) which are scheduled in the Cash Flow
     Schedule to be produced, at the Mine during such period.

     "PROJECT ACCOUNT AGREEMENT (MALI)" means the Project Account Agreement
     between the Project Account Bank (Mali), the Agent and the Borrower
     substantially in the form of Exhibit D-2 attached hereto.

     "PROJECT ACCOUNT AGREEMENT (OFFSHORE)" means the Project Account Agreement
     between the Project Account Bank (Offshore), the Agent and the Borrower
     substantially in the form of Exhibit D-1 attached hereto.

     "PROJECT ACCOUNT BANK (MALI)" means Banque de Developpement du Mali (or
     such other bank located in Bamako, Mali as may be appointed by the Borrower

                                      -22-

<PAGE>

     (with the consent of the Agent) with which the Project Account (Mali) shall
     be maintained).

     "PROJECT ACCOUNT BANK (OFFSHORE)" means the Jersey branch of Citibank N.A.
     (or such other bank located in Jersey as may be appointed by the Borrower
     (with the consent of the Agent) with which the Project Accounts (Offshore)
     shall be maintained).

     "PROJECT ACCOUNT BANKS" means, collectively, the Project Account Bank
     (Mali) and the Project Account Bank (Offshore).

     "PROJECT ACCOUNT (MALI)" is defined in Clause 4.2(a).

     "PROJECT ACCOUNTS (OFFSHORE)" means, collectively, the Operating Account
     and the Debt Service Reserve Account.

     "PROJECT ASSETS" means all properties, assets or other rights, whether real
     or personal, tangible or intangible, now owned or hereafter acquired by or
     for the benefit of the Borrower, which are used or intended for use in or
     forming part of the Mine or the Morila Project.

     "PROJECT CAPITAL COSTS" means, for any period, the aggregate of all Capital
     Expenditures scheduled to be, or, as the case may be, actually paid by the
     Borrower during such period in respect of constructing, reinstating,
     equipping, installing and completing the Morila Project and rendering the
     Morila Project operational.

     "PROJECT COSTS" means, for any period, the Project Operating Costs and the
     Project Capital Costs for such period.

     "PROJECT DOCUMENTS" means, collectively:

     (a)  the Construction Contract, the Mining Contract, the Power
          Contract, the Establishment Convention, the Mali Consent Agreement,
          the Refining Agreement, the Mining Concession, the Operating
          Agreement, the Shareholders Agreement and all related agreements or
          contracts, in each case in the form provided to the Agent in
          connection with its execution and delivery of this Agreement;

     (b)  all Required Hedging Agreements not constituting Loan Documents;
          and

     (c)  all other Instruments (excluding any Loan Document) required to be
          provided to the Agent pursuant to Clause 8.1.1(q), in each case in the
          form supplied pursuant to such clause.

     "PROJECT LIFE RATIO" means, at any date, the ratio, expressed as a
     percentage, of:

     (a)  the sum of the Present Value of Future Net Cash Flow for the
          period commencing on such date and ending on the last day of the
          Project Period plus the amount standing to the credit of the Debt
          Service Reserve Account at such date,

                                      -23-

<PAGE>

          to

     (b)  Funded Indebtedness at such date.

     "PROJECT OPERATING COSTS" means, for any period, all costs and expenses
     scheduled to be, or, as the case may be, actually paid by the Borrower for
     the purpose of operating, maintaining or protecting the Morila Project
     (including the Project Assets) or in mining, milling, leaching, loading,
     refining, delivering or marketing Project Output, in each case together
     with any applicable income taxes scheduled to be, or, as the case may be,
     actually paid during such period, including:

     (a)  the cash costs scheduled to be, or, as the case may be, actually
          paid during such period in connection with the operation, maintenance
          and reclamation of the Mine in order to mine, mill, leach, refine
          and/or deliver Project Output for sale, whether incurred pursuant to
          any Project Document or otherwise;

     (b)  all profit, income, property and other taxes imposed by any
          Governmental Agency, in each such case scheduled to be, or, as the
          case may be, actually paid during such period;

     (c)  all payments scheduled to be, or as the case may be, actually paid
          under any royalty agreements during such period and any production
          royalties calculated and payable (whether in cash or in kind) as a
          percentage of Gold produced and sold in connection with the Mine;

     (d)  Funded Debt Service for such period and net payments for such
          period in respect of Hedging Obligations entered into by the Borrower;
          and

     (e)  the management fee payable to the Operator during such period as
          set forth in the Operating Agreement.

     "PROJECT OUTPUT" means all products from the Mine.

     "PROJECT PARTY" means the Borrower and any Affiliate, agent, advisor
     (excluding legal advisers and other similar professional advisors not
     actually engaged in the construction, development, operation or maintenance
     of the Mine), contractor, consultant, officer, director or other associate
     of the Borrower retained, employed or consulted by the Borrower in
     connection with the consummation of the Morila Project or the operation of
     the Mine.

     "PROJECT PERIOD" means the period commencing on the Effective Date and
     continuing until the earlier of:

     (a)  31 December, 2011; and

     (b)  the date on which the Proven and Probable Reserve of the Mine are
          scheduled to have been extracted, milled, refined and sold in
          accordance with the projections set forth in the Cash Flow Schedule.

                                      -24-

<PAGE>

     "PROJECTED CASH FLOW" means, in connection with any Cash Sweep Calculation
     Period, Future Net Cash Flow for such Cash Sweep Calculation Period.

     "PROVEN AND PROBABLE RESERVES" means, at any date, reserves of Gold at the
     Mine as determined and calculated in accordance with standards established
     from time to time by the Joint Ore Reserve Committee of the Australasian
     Institute of Mining and Metallurgy, the Minerals Counsel of Australia and
     the Australian Institute of Geoscientists.

     "RANDGOLD COMPLETION GUARANTORS" is defined in the preamble.

     "RANDGOLD GUARANTEE AGREEMENT" means the Guarantee between the Randgold
     Completion Guarantors and the Agent, substantially in the form of Exhibit B
     attached hereto.

     "RECL" means Randgold & Exploration Company Limited, a company organised
     and existing under the laws of the Republic of South Africa.

     "RECL CONVERTIBLE BONDS" means U.S.$48,000,000 aggregate principal amount
     of secured guaranteed convertible bonds issued by Randgold Finance (BVI)
     Limited on or about 3 October, 1996 pursuant to the trust deed, dated 3
     October, 1996 among Randgold Finance (BVI) Limited, RECL, Randgold
     Resources (Holdings) Limited, RRL, and Marine Midland Bank, as trustee.

     "REFINER" means Rothschild or such other company (or companies) as may be
     appointed to refine Project Output in compliance with the proviso to Clause
     9.1.14.

     "REFINING AGREEMENT" means the Gold and Silver Refining and Purchase
     Agreement, dated 30 November, 1999 between the Borrower and the Refiner
     relating to the refining of Project Output.

     "REGULATORY CHANGE" means the occurrence after the Effective Date of any
     change in or abrogation of, or introduction, adoption, effectiveness or
     phase-in of any:

     (a)  statute, law, rule or regulation applicable to any Lender Party,
          or

     (b)  guideline, interpretation, directive, consent decree, administrative
          order, request or determination (whether or not having the force of
          law but being one with which such Lender Party is accustomed to
          comply) applicable to such Lender Party of any court, central bank or
          governmental or regulatory authority charged with the interpretation
          or administration of any stature, law, rule or regulation referred to
          in clause (a) or of any fiscal, monetary or other authority having
          jurisdiction over such Lender Party,

     or any interpretation or reinterpretation of any item or matter referred to
     in clause (a) or (b) by any person with authority in connection with such
     interpretation or reinterpretation.

     "RELEASE DATE" means the date which is the first Business Day coinciding
     with the Economic Completion Date on which the balance standing to the
     credit of the Debt Service Reserve Account shall be equal to or in excess
     of the then applicable

                                      -25-

<PAGE>

     Required Debt Service Reserve Balance; provided, however, that the Release
     Date may not occur on any date on which a Default shall have occurred and
     be continuing.

     "RELEVANT GROUP COMPANY" means any of the Borrower, any Randgold Completion
     Guarantor, any subsidiary of the Borrower or any Randgold Completion
     Guarantor, AngoGold and AngloGold (BVI) and "RELEVANT GROUP COMPANIES"
     means all such persons; provided, however, that in Clause 7.14 and Clause
     7.19(b), the term "RELEVANT GROUP COMPANY" shall not include AngloGold or
     AngloGold (BVI).

     "REQUIRED COMPLETION EXPENDITURES" means those bona file Project Costs
     which the Agent (acting reasonably in consultation with the Independent
     Engineer) determines are required to achieve Economic Completion.

     "REQUIRED DEBT SERVICE RESERVE BALANCE" is defined in Clause 4.3(b)

     "REQUIRED HEDGING AGREEMENTS" is defined in Clause 8.1.10.

     "REQUIRED HEDGING COUNTERPARTIES" is defined in Clause 8.1.10.

     "REQUIRED LENDERS" means at any time, Lenders having, in the aggregate, a
     Percentage of sixty five (65%) or more at such time.

     "REQUIRED MAINTENANCE EXPENDITURES" means those bona fide Project Costs
     which the Agent (acting reasonably in consultation with the Independent
     Engineer) determines are required to operate, manage and maintain the Mine
     in normal working condition.

     "REQUIREMENT OF LAW" means, as to any person, its Organic Documents and any
     Applicable Law or Contractual Obligation binding on or applying to such
     person.

     "ROTHSCHILD" is defined in the preamble.

     "RRL" is defined in the preamble.

     "RRL GROUP" means RRL, its subsidiaries and subsidiary undertakings and
     their subsidiaries and subsidiary undertakings.

     "RRL SECURITY AGREEMENT" means that certain Security Agreement between RRL
     and the Agent, substantially in the form of Exhibit A-5 attached hereto.

     "SBL" is defined in the preamble.

     "SECURITY AGREEMENTS" means, collectively, the Mali Security Agreements,
     the Borrower Security Agreement (Offshore Assets), the RRL Security
     Agreement, the Subordination Agreements, the AngloGold Debenture and all
     Instruments delivered pursuant to Clause 8.1.16

     "SEMI-ANNUAL MINE REPORT" means a report to the Agent and the Lenders from
     the Borrower and the Independent Engineer and in a form reasonably
     acceptable to the Agent and relating to the status of the Mine and the
     progress of the Morila

                                      -26-

<PAGE>

     Project, (including, in the case of each Semi-Annual Mine Report prepared
     in respect of each twelve-monthly period ending on 31 December of each
     calendar year, an environmental report in reasonable detail reasonably
     satisfactory to the Agent) each Obligor's, AngloGold's and AngloGold
     (BVI)'s compliance with this Agreement (including the absence of any Event
     of Default pursuant to Clause 9.1.19) and each other Operative Document to
     which it is a party, and relating to each twelve month period ending on
     December 31 of each calendar year and each six month period ending on June
     30 of each calendar year.

     "SHAREHOLDERS AGREEMENT" means the Shareholders Agreement, dated 29 May,
     2000 among the Government of Mali, Morila Holdings and the Borrower.

     "STEP-IN AGREEMENTS" means, collectively:

     (a)  the Original Step-In Agreements; and

     (b)  the agreement entered into pursuant to item 14 of the First
          Schedule to the Supplemental Agreement.

     "SUBORDINATION AGREEMENTS" means, collectively:

     (a)  the Deed of Subordination and Pledge among the Borrower, RRL, RECL
          and the Agent, substantially in the form of Exhibit C-1 attached
          hereto;

     (b)  the Deed of Subordination among RRL, Banex and the Agent
          substantially in the form of Exhibit C-2 attached hereto; and

     (c)  the Deed of Subordination and Pledge, dated July 6, 2000, among
          the Borrower, AngloGold (BVI) and the Agent.

     "SUBSEQUENT REPAYABLE INTERCOMPANY INDEBTEDNESS" means U.S.$15,000,000.

     "SUPPLEMENTAL AGREEMENT" is defined in the preamble.

     "SUPPLEMENTAL AGREEMENT DRAWDOWN" means the principal amount of Loans
     advanced during the period commencing on the Supplemental Agreement
     Effective Date and ending on the date which is five (5) Business Days
     thereafter.

     "SUPPLEMENTAL AGREEMENT EFFECTIVE DATE" means the "RESTATEMENT EFFECTIVE
     DATE" as such term is defined in the Supplemental Agreement.

     "TAX CREDIT" is defined in Clause 5.7(b).

     "TAX PAYMENT" is defined in Clause 5.7(b).

     "TAXES" is defined in Clause 5.6.

     "TECHNICAL REVIEW" means the "MORILA GOLD PROJECT AUDIT", dated August,
     1999, and the two addenda thereto, dated December, 1999 and April, 2001
     prepared by the Independent Engineer, in the form provided to the Lender
     Parties in connection with their execution of this Agreement and as the
     same may be

                                      -27-

<PAGE>

     amended, modified or supplemented from time to time as a result of changes
     thereto made pursuant to Clause 1.9(b).

     "TOTAL CASH BALANCES" means, in connection with any Cash Sweep Calculation
     Period, the aggregate of the amounts (calculated in Dollars) credited to
     the Project Accounts (Offshore) and the Project Account (Mali) as at the
     first Business Day of such Cash Sweep Calculation Period.

     "TOTAL COMMITMENT AMOUNT" means, at any time, subject to the terms and
     conditions of this Agreement the excess, if any, of: ***

     (a)  U.S.$90,000,000; less

     (b)  any reduction of the Total Commitment Amount effected pursuant to
          Clause 2.4.

     "TRANSFER CERTIFICATE" means a certificate substantially in the form set
     out in Exhibit K attached hereto executed and delivered pursuant hereto by
     a Transferor Lender and a Transferee Lender and accepted by the Agent.

     "TRANSFEREE LENDER" is defined in Clause 11.11.2.

     "TRANSFEROR LENDER" is defined in Clause 11.11.2.

     "UNITED STATES" or "U.S." means the United States of America, the
     territories and possessions and any state thereof and the District of
     Columbia.

1.2  ADDITIONAL DEFINITIONS

     Any reference in this Agreement or any other Loan Document to:

     (a)  an "AFFILIATE" of any person is a reference to a subsidiary or a
          holding company, or a subsidiary of a holding company, of such person;

     (b)  references to the "BORROWER", any "COMPLETION GUARANTOR", any
          "OBLIGOR", any "RANDGOLD COMPLETION GUARANTOR", "ANGLOGOLD",
          "ANGLOGOLD (BVI)", the "AGENT", any "ARRANGER", any "CO-ARRANGER" or
          any "LENDER" shall be construed so as to include their respective
          successors and permitted transferees and assigns in accordance with
          their respective interests;

     (c)  "CONTROL" means the power of one person to:

          (i)   vote more than fifty percent (50%) of the issued share
                capital of, or the voting power in, a second person; or

          (ii)  direct the management, business or policies of such second
                person, whether by contract or otherwise;

     (d)  "FINANCIAL INDEBTEDNESS" shall be construed as a reference to any
          indebtedness for or in respect of moneys borrowed or raised by
          whatever means (including by means of acceptances under any acceptance
          credit

                                      -28-

<PAGE>

          facility, the issue of loan stock, any liability in respect of
          Capital Leases and any obligations evidenced by bonds, notes,
          debentures or similar instruments) or for the deferred purchase price
          of assets or services (excluding normal trade debt which does not
          include any interest payment or finance charge) or any other
          transaction having the commercial effect of a borrowing; provided,
          however, that any interest, commission, fees or other like financing
          charges shall be excluded save to the extent that the same has been
          capitalised;

     (e)  a "GUARANTEE" includes a standby letter of credit, an indemnity and
          any other obligation (howsoever called) of any person to pay, purchase
          or provide funds (whether by the advance of money, the purchase of or
          subscription for shares or other securities, the purchase of assets or
          services or otherwise) for the payment of or to assist in or provide
          means of discharging or otherwise be responsible for, any indebtedness
          of, or the solvency of any other person;

     (f)  "GUARANTEED INDEBTEDNESS" means, with respect to any person, all
          indebtedness of such person in respect of guarantees or other similar
          assurances against loss given by such person in respect of the
          indebtedness of other persons;

     (g)  a "HOLDING COMPANY" of a company or corporation shall be construed as
          a reference to any company or corporation of which the first-mentioned
          company or corporation is a subsidiary;

     (h)  "INDEBTEDNESS" shall be construed so as to include any obligation
          (whether incurred as principal or as surety) for the payment or
          repayment of money, whether present or future, actual or contingent;

     (i)  a "LIEN" means any mortgage, charge, pledge, hypothecation, assignment
          by way of security, deposit arrangement, encumbrance, lien (statutory
          or otherwise), title retention, finance lease, factoring or
          discounting of debts or other security interest on or over present or
          future assets of the person concerned securing any obligation of any
          person or any other type of preferential or trust arrangement having a
          similar effect, including any such security interest which arises or
          is imposed by operation of law;

     (j)  a "MONTH" is a reference to a period starting on one day in a calendar
          month and ending on the numerically corresponding day in the next
          calendar month save that, where any such period would otherwise end on
          a day which is not a Business Day, it shall end on the next Business
          Day, unless that day falls in the calendar month succeeding that in
          which it would otherwise have ended, in which case it shall end on the
          preceding Business Day; provided, however, that, if a period starts on
          the last Business Day in a calendar month or if there is no
          numerically corresponding day 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);

                                      -29-

<PAGE>

     (k)  a "PERSON" means any natural person, corporation, partnership, firm,
          association, trust, government, governmental agency or any other
          entity, whether acting in an individual, fiduciary or other capacity;

     (l)  a "QUARTER" means each three month period beginning in any year, on
          each of 1st January, 1st April, 1st July, 1st October or, if any such
          date is not a Business Day, the immediately preceding Business Day;

     (m)  a "SUBSIDIARY" and a "SUBSIDIARY UNDERTAKING" shall have the same
          meaning as in the Companies Act 1985 of the United Kingdom; and

     (n)  the "WINDING-UP" or "DISSOLUTION" of a company or the appointment of
          an "ADMINISTRATIVE RECEIVER", a "RECEIVER", "MANAGER", "LIQUIDATOR" or
          an "ADMINISTRATOR" with respect to a company shall be construed so as
          to include any equivalent or analogous proceedings or, as the case may
          be, person under the law of the jurisdiction in which such company is
          incorporated or any jurisdiction in which such company carries on
          business.

1.3  INTERPRETATION

     Unless a clear contrary intention appears, this Agreement and each other
     Loan Document shall be construed and interpreted in accordance with the
     provisions set forth below;

     (a)  reference to any agreement (including the Schedules and Exhibits
          hereto and to any other Loan Document), document (including the Cash
          Flow Schedule, Development Plan and Insurance Summary) or Instrument
          means such agreement, document or Instrument as amended, supplemented,
          novated, refinanced, replaced, waived, restated or modified, and in
          effect from time to time in accordance with the terms thereof and, if
          applicable, the terms hereof;

     (b)  reference to any Applicable Law means such Applicable Law as amended,
          modified, codified or reenacted, in whole or in part, and in effect
          from time to time, including rules and regulations promulgated
          thereunder;

     (c)  a reference to a time of day shall be construed as a reference to
          London time;

     (d)  "INCLUDING" (and with correlative meaning "INCLUDE") means including
          without limiting the generality of any description preceding such
          term;

     (e)  the singular number includes the plural number and vice versa;

     (f)  reference to any person includes such person's successors, substitutes
          and assigns but, if applicable, only if such successors, substitutes
          and assigns are permitted by this Agreement or such other Loan
          Document, and reference to a person in a particular capacity excludes
          such person in any other capacity or individually;

     (g)  reference to any gender includes any other gender;

                                      -30-

<PAGE>

     (h)  "HEREUNDER", "HEREOF", "HERETO", "HEREIN" and words of similar import
          shall be deemed references to this Agreement or such other Loan
          Document, as the case may be, as a whole and not to any particular
          Clause or other provision hereof or thereof;

     (i)  relative to the determination of any period of time, "FROM" means
          "FROM (AND INCLUDING)" and "TO" means "TO (BUT EXCLUDING)";

     (j)  a reference to a "CORPORATION" or "COMPANY" shall be construed as a
          reference to the analogous form of business entity used in any
          relevant jurisdiction;

     (k)  when an expression is defined, another part of speech or grammatical
          form of that expression has a corresponding meaning; and

     (l)  a reference to fees, costs, charges or expenses includes all value
          added tax or other applicable taxes imposed thereon.

1.4  USE OF DEFINED TERMS

     Unless otherwise defined or the context otherwise requires, terms for which
     meanings are provided in this Agreement shall have such meanings when used
     in the Disclosure Schedule, the Insurance Summary, each Borrowing Request,
     each Continuation Notice, each Compliance Certificate and other Loan
     Document and each notice and other communication delivered from time to
     time in connection with this Agreement or any other Loan Document.

1.5  CROSS-REFERENCES

     Unless otherwise specified, references in this Agreement and in each other
     Loan Document to any Clause or sub-clause are references to such Clause or
     sub-clause of this Agreement or such other Loan Document, as the case may
     be, and unless otherwise specified, references in any Clause or sub-clause
     or definition to any clause are references to such clause of such Clause or
     definition.

1.6  ACCOUNTING AND FINANCIAL DETERMINATIONS

     All accounting terms used herein or (except to the extent set forth
     therein) in any other Loan Document shall be interpreted, all accounting
     determinations and computations hereunder or thereunder shall be made, and
     all financial statements required to be delivered hereunder or thereunder
     shall be prepared in accordance with, International Accounting Standards
     ("GAAP"), in each case, applied (subject to the provisions of Clause 1.7)
     on a basis consistent with the preparation of the financial statements
     referred to in Clause 7.6(a).

1.7  CHANGE IN ACCOUNTING PRINCIPLES

     If, after the Effective Date, there shall (without prejudice to Clause 1.6
     and Clause 8.2.1(a)(iv)) be any change to any Obligor's Fiscal Year, or in
     the application of the accounting principles used in the preparation of the
     financial statements referred to in Clause 7.6(a) as a result of the
     promulgation of rules, regulations, pronouncements, or opinions by any
     Governmental Agency or any entity with

                                      -31-

<PAGE>

     responsibility for the administration of accounting standards (or agencies
     with similar functions) which changes, in any such case, result in a change
     in the method of calculation of financial covenants, standards, or terms
     applicable to such Obligor found in this Agreement or any other Loan
     Document, the parties hereto agree promptly to enter into negotiations in
     order to amend such financial covenants, standards or terms so as to
     reflect equitably such changes with the desired result that the evaluations
     of such Obligor's financial condition shall be the same after such changes
     as if such changes had not been made; PROVIDED, HOWEVER, that until the
     Required Lenders have given their consent to such amendments, such
     Obligor's financial condition shall continue to be evaluated on the same
     principles as those used in the preparation of the financial statements
     referred to in Clause 7.6(a).

1.8  DOLLAR EQUIVALENCY DETERMINATIONS

     Except as otherwise set forth in this Agreement or any other Loan Document,
     all calculations or determinations to be made from time to time under this
     Agreement or any other Loan Document in connection with the Dollar
     equivalent of any amount denominated in Gold shall be calculated by
     multiplying:

     (a)  the amount of ounces of such Gold;

          by

     (b)  the London Gold Price on the date which is two (2) Business Days prior
          to the date on which such calculation is to be made.

1.9  PROJECT DETERMINATIONS, ETC

     (a)  (i) All financial determinations and calculations relating to the
          Morila Project (including the determination or calculation, as the
          case may be, of Funded Debt Service, Future Net Cash Flow, Loan Cover
          Ratio, Loan Life Ratio, Mine Output, Present Value of Future Net Cash
          Flow, Production, Project Capital Costs, Project Costs, Project Life
          Ratio, Project Operating Costs, Project Output, Project Period, Proven
          and Probable Reserves (for purposes of clause (b) of the definition of
          such term), Projected Cash Flow and Reserve Value Cover Ratio, but
          excluding the determination or calculation of Actual Cash Flow) shall
          be:

               (x)  in the case of any such projected determination or
                    calculation, made by utilising the Cash Flow Model (and
                    taking into account any Hedging Obligations then in effect);
                    and

               (y)  calculated to the reasonable satisfaction of the Lenders;

               provided, however, that during any period when negotiations of
               the nature referred to in clause (b)(ii) are taking place, shall
               be determined to the reasonable satisfaction of the Required
               Lenders.

          (ii)  All determinations and calculations to be made in accordance
                with the Cash Flow Model by reference to a specified period
                shall, in the event such period does not appear in the Cash
                Flow Model, be

                                      -32-

<PAGE>

                determined or calculated on a pro-rata basis for such specified
                period from the actual periods referred to in the Cash Flow
                Model.

     (b)  (i) Without prejudice to the provisions of clause (c), the Borrower
          shall give prompt notice to the Lenders of any change in any fact,
          event or circumstance which renders the Cash Flow Schedule as then
          currently in effect materially inaccurate (including:

               (x)  the occurrence of the Economic Completion Date prior to 31
                    October, 2001;

               (y)  any change in the cash flows expected in connection with the
                    Morila Project due to any interruption to the operation of
                    the Mine or any acceleration in Production; and

               (z)  any change in the likely future development of the Morila
                    Project arising as a result of any tests concluded in
                    connection with the achievement of Mechanical Completion or
                    Economic Completion)

               and shall work in consultation with the Agent and the Independent
               Engineer to produce a revised Cash Flow Schedule which is
               responsive to such changes. A copy of such revised Cash Flow
               Schedule shall be promptly sent to each of the Lenders.

          (ii)  In the event that the Agent, acting in consultation with the
                Borrower and the Independent Engineer, reasonably determines
                that the Cash Flow Model is no longer capable of producing an
                accurate forecast of the performance of the Morila Project
                (including an accurate forecast of any of the financial measures
                referred to in Clause 9.1.19) then the Lenders and the Borrower
                shall negotiate in good faith to produce a revised model which
                is capable of producing such an accurate forecast.

          (iii) In the event that the Cash Flow Schedule or the Cash Flow Model
                shall be modified prior to the Economic Completion Date pursuant
                to the foregoing provisions of this clause (including as a
                result of any acceleration in Production), the Economic
                Completion Certificate shall be amended to reflect such
                modifications in such manner as the Agent, acting in
                consultation with the Independent Engineer, shall reasonably
                request.

     (c)  From time to time, and in any event with not less than a frequency of
          six (6) months, the Agent and the Borrower shall run the Cash Flow
          Model employing relevant parameters then applicable to the Morila
          Project with a view to producing a revised Cash Flow Schedule. Copies
          of such revised Cash Flow Schedule shall promptly be supplied to each
          Lender and to each of the Completion Guarantors. For the avoidance of
          doubt, the production of any revised Cash Flow Schedule shall not, and
          shall not be deemed to, imply any waiver of any Default which might be
          indicated by such revised Cash Flow Schedule (including any such
          Default arising pursuant to Clause 9.1.19).

                                      -33-

<PAGE>

1.10 GENERAL PROVISIONS AS TO CERTIFICATES AND OPINIONS, ETC

     Whenever the delivery of a certificate is a condition precedent to the
     taking of any action by any Lender Party hereunder, the truth and accuracy
     of the facts and the diligent and good faith determination of the opinions
     stated in such certificate shall in each case be conditions precedent to
     the right of any Obligor to have such action taken, and any certificate
     executed by any Obligor shall be deemed to represent and warrant that the
     facts stated in such certificate are true and accurate.

2.   COMMITMENTS; BORROWING AND INTEREST PERIOD SELECTION PROCEDURES, ETC

2.1  COMMITMENTS

     (a)  Subject to the terms and conditions of this Agreement (including
          Clause 6) each Lender severally and for itself alone agrees that it
          will, from time to time on any Business Day occurring during the
          period commencing on the Effective Date and ending on the relevant
          Commitment Termination Date, make loans (with respect to each Lender,
          each such loan individually a "LOAN") denominated in Dollars to the
          Borrower as set forth in this Clause.

     (b)  As set forth in Clause 2.2, each Loan made by each Lender pursuant to
          any Borrowing Request shall be made in a Principal Amount equal to
          such Lender's Funding Percentage of the aggregate Principal Amount of
          the Loans requested by the Borrower to be made on the Borrowing Date
          specified in such Borrowing Request.

     (c)  No Lender shall be required to make any Loan if, after giving effect
          thereto, the aggregate original Principal Amount of all Loans:

          (i)  made by all Lenders since the Effective Date would exceed the
               Total Commitment Amount; or

          (ii) made by such Lender since the Effective Date would exceed such
               Lender's Commitment Amount.

2.2  PROCEDURE FOR MAKING LOANS

     (a)  By delivering a Borrowing Request to the Agent on or before 10:00 a.m.
          on any Business Day the Borrower may request, on not less than three
          (3) nor more than five (5) Business Days' notice (counting the date on
          which such Borrowing Request is given), that Loans be made by all
          Lenders on the Borrowing Date, and in the Principal Amount, in each
          case as specified in such Borrowing Request. Upon receipt of a
          Borrowing Request, the Agent shall promptly notify each Lender of the
          contents thereof, and such Borrowing Request shall not thereafter be
          revocable unless such revocation is made with the consent of the
          Agent.

     (b)  The aggregate Principal Amount of Loans requested to be made in any
          Borrowing Request shall not be less than U.S.$5,000,000 and shall be
          in an integral multiple of U.S.$1,000,000.

                                      -34-

<PAGE>

     (c)  Subject to the terms and conditions of this Agreement (including
          Clause 6), the Loans requested to be made in a Borrowing Request shall
          be made on the requested Borrowing Date. On such Borrowing Date and
          subject to such terms and conditions, each Lender shall, on or before
          11:00 a.m., credit such Dollar account of the Agent at its Dollar
          Lending Office as the Agent may notify to the Lenders with an amount
          of Dollars equal to such Lender's Percentage of the aggregate
          Principal Amount of the Loans to be made pursuant to such Borrowing
          Request. To the extent funds are received by the Agent from the
          Lenders in respect of the Loans requested by each Borrowing Request
          (but subject to clause (d)) the Agent shall make such funds available
          to the Borrower by crediting the Principal Amount of such Loans to the
          Operating Account. No Lender's obligation to make any Loan as
          aforesaid shall be affected by any other Lender's failure to make any
          other Loan.

     (d)  Unless the Agent shall have received written notice from a Lender
          prior to 5:00 p.m. on the day prior to a Borrowing Date that such
          Lender will not make available the Principal Amount which would
          constitute its Percentage of the aggregate Principal Amount of Loans
          to be made on such Borrowing Date pursuant to the relevant Borrowing
          Request, the Agent may assume that such Lender has made such Principal
          Amount available to the Agent and may, in reliance on such assumption,
          make available to the Borrower a corresponding amount. In the event
          that the Agent makes such corresponding amount available to the
          Borrower and the relevant Lender has not in fact made such amount
          available to the Agent, then such Lender agrees to pay the Agent
          forthwith on demand such corresponding amount together with interest
          thereon, for each day from the date such corresponding amount was made
          available by the Agent to the Borrower to the date such amount is paid
          by the Lender to the Agent, at the interest rate applicable at the
          time to the Loans requested to be made pursuant to the relevant
          Borrowing Request. In the event that such corresponding amount and
          such interest is not paid to the Agent by such Lender within five (5)
          Business Days of the Agent having made written demand for such amount,
          then the Borrower agrees to repay such corresponding amount to the
          Agent together with interest thereon, for each day from the date such
          corresponding amount was made available by the Agent to the Borrower
          to the date such amount is paid by the Borrower to the Agent, at the
          interest rate applicable at the time to the Loans requested to be made
          pursuant to the relevant Borrowing Request.

2.3  CONTINUATION ELECTIONS

     By delivering a Continuation Notice to the Agent on or before 10:00 a.m. on
     a Business Day, the Borrower may from time to time irrevocably elect, on
     not less than three (3) nor more than five (5) Business Days' notice
     (counting the date on which such Continuation Notice is given) prior to the
     expiration of any Interest Period with respect to any then outstanding
     Loans, that such Loans be, upon the expiration of such Interest Period,
     continued as Loans for the Interest Period specified in such Continuation
     Notice; PROVIDED, HOWEVER, that, at any one time, only five (5) Interest
     Periods may be in effect; and PROVIDED, FURTHER, HOWEVER,

                                      -35-

<PAGE>

     that following any continuation of Loans, each tranche of Loans with
     identical Interest Periods made by all the Lenders shall be in an aggregate
     Principal Amount which is not less than U.S.$5,000,000 and in an integral
     multiple of U.S.$1,000,000.

     In the absence of delivery of a Continuation Notice with respect to any
     Loans at least three (3) Business Days before the last day of the then
     current Interest Period with respect thereto, such Loans shall, on such
     last day, automatically be deemed to be continued as Loans having (subject
     to Clause 3.2.2) on interest Period determined pursuant to the provisions
     of clause (c) of the definition of such term.

     No more than five (5) different Interest Periods may be outstanding with
     respect to all Loans at any one time.

2.4  CANCELLATION

     (a)  The Borrower may cancel the unutilised portion of the Total Commitment
          Amount in whole or in part on giving not less than three (3) Business
          Days prior written notice thereof to the Agent. Cancellation of any
          portion of the Total Commitment Amount shall be in an integral
          multiple of U.S.$1,000,000. Effective upon the cancellation of a
          portion of the Total Commitment Amount each Lender's Commitment Amount
          will immediately be reduced by an amount equivalent to its relevant
          Funding Percentage of the amount of such cancellation.

     (b)  Any notice given under clause (a) shall be irrevocable (except for
          revocation made with the consent of the Agent (acting in consultation
          with the Lenders)). The Borrower may give a notice pursuant to clause
          (a) only if the Agent believes (on the advice of the Independent
          Engineer) that the Mechanical Completion Date, the Economic Completion
          Date and the Release Date are each likely to occur on or prior to 31
          December, 2001, in each case using funds from the unutilised portion
          of the Total Commitment Amount as will remain available and/or from
          other funds available to the Borrower.

2.5  RECORDS

     Each Lender's Loans shall be evidenced by a loan account maintained by such
     Lender. The Borrower hereby irrevocably authorises each Lender to make (or
     cause to be made) appropriate account entries, which account entries, if
     made, shall evidence INTER ALIA the type of, the date of, the Principal
     Amount of, any repayments of, the interest rate on, and the Interest
     Periods applicable to, the Loans then outstanding to such Lender. Any such
     account entries indicating the outstanding Principal Amount of the Loans
     outstanding to such Lender shall be PRIMA FACIE evidence of the Principal
     Amount thereof owing and unpaid, but the failure to make any such entry
     shall not limit or otherwise affect the obligations of the Borrower
     hereunder to make payments of the Principal Amount of, or interest on, such
     Loans when due.

2.6  FUNDING

                                      -36-

<PAGE>

     Each Lender may, if it so elects, fulfil its obligation to make or maintain
     any portion of the Principal Amount of its Loans by causing a foreign
     branch, affiliate or international banking facility of such Lender to make
     such Loans; provided, however, that in such event such Loans shall be
     deemed to have been made by a foreign branch, affiliate or international
     banking facility of such Lender, the obligation of the Borrower to repay
     the Principal Amount of such Loans, and pay interest thereon, shall
     nevertheless be to such Lender and shall be deemed to be held by it, to the
     extent of such Loans, for the account of such foreign branch, affiliate or
     international banking facility.

3.   PRINCIPAL PAYMENTS; INTEREST

3.1  PRINCIPAL PAYMENTS

     The Borrower shall make payment in full of the unpaid Principal Amount of
     all Loans at the Final Maturity Date. Prior thereto, the Borrower:

     (a)  may, from time to time on any Business Day which is the last day of
          the Interest Period for the Loans to be prepaid or (subject to Clause
          5.3) on any other Business Day, make a voluntary prepayment, in whole
          or in part, of the then outstanding Principal Amount of Loans;
          provided, however, that:

          (i)   the Borrower shall give the Agent not less than three (3)
                Business Days' prior written notice (counting the date on which
                such notice is given) of any such voluntary prepayment, which
                notice, once given, shall be irrevocable;

          (ii)  all such partial voluntary prepayments shall be in an aggregate
                Principal Amount which is in a minimum amount of U.S.$5,000,000
                and an integral multiple of U.S.$1,000,000; and

          (iii) the Borrower shall, simultaneously with providing the notice
                referred to in clause (a)(i), provide the Agent with such
                evidence as the Agent may require in connection with any
                Approval required or advisable in connection with such
                prepayment.

     (b)  shall, on each Principal Payment Date or, if agreed with the Agent, on
          the last day of the immediately following Interest Period, make a
          mandatory repayment of the Loans outstanding on each such date in a
          Principal Amount such that the aggregate Principal Amount of Loans
          outstanding on such Principal Payment Date shall not exceed the
          Principal Amount set forth below opposite such Principal Payment Date:

              30 June, 2001          U.S.$81,000,000

              31 December, 2001      U.S.$72,000,000

              30 June, 2002          U.S.$63,000,000

              31 December, 2002      U.S.$54,000,000

                                      -37-

<PAGE>

              30 June, 2003          U.S.$45,000,000

              31 December, 2003      U.S.$36,000,000

              30 June, 2004          U.S.$27,000,000

              31 December, 2004      U.S.$18,000,000

              30 June, 2005          U.S.$9,000,000

              31 December, 2005      U.S.$0;

      (c)  shall, on each date of receipt of proceeds of any insurance policy
           which are required by the terms of Clause 8.1.7(c)(i) or 8.1.7(c)(iv)
           to be applied against the Loans, make a mandatory prepayment of the
           Loans outstanding on such date in a Principal Amount equal to the
           amount of such proceeds; and

      (d)  shall, on each Cash Sweep Calculation Date (or, with the consent of
           the Agent, on the last day of one or more of the Interest Periods in
           effect on such Cash Sweep Calculation Date) make a mandatory
           repayment of the Loans outstanding on such date in a Principal Amount
           equal to twenty percent (20%) of the Excess Cash Flow (if any) for
           the Cash Sweep Calculation Period most recently ended prior to such
           Cash Sweep Calculation Date; provided, however, that the maximum
           Principal Amount of Loans prepaid pursuant to this clause shall not
           exceed U.S.$18,000,000.

      Any amount in respect of any Loans prepaid under clause (c) or (d) shall
      he applied against subsequent repayments of Loans required to be made
      pursuant to clause (b) in the inverse order of maturity thereof; provided,
      however, that at any time on or after the time when the amount scheduled
      to be paid on the Final Maturity Date shall, as a result of any prepayment
      or repayment of the Loans made pursuant to this Clause, have been reduced
      to zero, any amount in respect of any Loans prepaid under clause (d) shall
      be applied against subsequent repayments of Loans required to be made
      pursuant to clause (b) pro rata. Any amount in respect of any Loans
      prepaid under clause (a) shall be applied against subsequent repayments of
      Loans required to be made pursuant to clause (b) pro rata. Each repayment
      or prepayment of the Principal Amount of any Loans made pursuant to this
      Clause shall be without premium or payment of any other additional amount,
      except as may be required pursuant to Clause 5.3. Any repayment or
      prepayment of the Principal Amount of any Loans shall include accrued
      interest on the date of repayment or prepayment on the Principal Amount
      being prepaid. The Principal Amount of any Loans repaid or prepaid may not
      be re-borrowed.

3.2   INTEREST PAYMENTS

      The Borrower shall make payments of interest in accordance with this
      Clause.

3.2.1 RATE

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<PAGE>

      The Borrower shall pay interest on the Principal Amount of the Loans
      outstanding from time to time prior to and at Maturity at a rate per annum
      equal to the sum of:

      (a) the LIBO Rate for Loans; plus

      (b) the Applicable Margin,

      as each may be in effect from time to time.

3.2.2 POST-MATURITY RATE

      After the Maturity of all or any portion of the Principal Amount of the
      Loans or after any other Obligations shall have become due and not been
      paid, the Borrower shall pay interest (after as well as before judgment)
      on the Principal Amount of each Loan so matured or on any such other
      Obligations at a rate per annum equal to the sum of:

      (a)  the LIBO Rate for such Interest Periods as the Agent may from time to
           time select;

      (b)  the Applicable Margin as in effect from time to time; plus

      (c)  two percent (2%),

3.2.3 PAYMENT DATES

      Interest accrued on each Loan shall be payable, without duplication, on:

      (a)  the last day of each Interest Period with respect to such Loan (and,
           in addition to such day, if such interest Period shall exceed six (6)
           months, on each date which is the last day of each successive
           three-monthly period occurring during such Interest Period commencing
           with the first six (6) month period commencing on the first day of
           such Interest Period);

      (b)  the Maturity of such Loan; and

      (c)  with respect to any portion of any Loan repaid or prepaid pursuant to
           Clause 3.1, 5.1, 5.2, or 5.5, the date of such repayment or
           prepayment, as the case may be.

      Interest accrued on each Loan after the Maturity thereof and interest on
      other overdue amounts, shall be payable upon demand. The amount of
      accruing interest on any Loans shall be calculated during each Interest
      Period applicable thereto by the Agent on the daily outstanding Principal
      Amount of such Loans.

3.2.4 RATE DETERMINATIONS

      All determinations by the Agent of the rate of interest applicable to any
      Loan shall be conclusive absent manifest error.

3.3   FEES

                                      -39-

<PAGE>

      (a)  The Borrower shall pay to the Agent, and the Agent shall pay to the
           Lender Parties, fees (other than the fees referred to in clause (b))
           in the amounts and at the times agreed between the Borrower and the
           Agent or, as the case may be, the Agent and the Lender parties, in
           connection with the execution of this Agreement and the execution of
           the Supplemental Agreement.

      (b)  The Borrower shall pay to the Agent for the account of each Lender a
           commitment fee computed at the rate of 0.50% per annum on the
           undrawn, uncancelled and unreduced amount of each Lender's Commitment
           Amount. Accrued commitment fees shall be payable in arrears at the
           end of each quarter.

      (c)  Each Obligor hereby acknowledges that any portion of any fee once
           paid shall be non-refundable, such portion having already been earned
           by performance.

4.    PROJECT ACCOUNTS

4.1   OPERATING ACCOUNT

      (a)  PAYMENTS INTO OPERATING ACCOUNT

           The Borrower shall, subject to Clause 4.2(c), promptly deposit:

           (i)    to the extent required pursuant to Clause 8.1.7, all proceeds
                  under policies of insurance maintained by the Borrower;

           (ii)   all proceeds of the sale of Project Output;

           (iii)  all proceeds derived from the exercise of any Required Hedging
                  Agreement;

           (iv)   the proceeds of all Loans, Capital Contributions and any
                  Approved Subordinated Indebtedness; and

           (v)    all other amounts received by it in connection with the
                  Project,

           into an account denominated in Dollars (the "OPERATING ACCOUNT")
           established in Jersey by the Borrower in the name of the Borrower
           with the Project Account Bank (Offshore).

      (B)  PAYMENTS FROM THE OPERATING ACCOUNT

           On the terms and subject to the conditions of this Agreement
           (including Clauses 4.4(b) and 4.4(c)), the Borrower may only instruct
           the Project Account Bank (Offshore) to disburse funds from the
           Operating Account for application in the following order of priority:

           (i)    FIRST, for payment (including by transfer to the Project
                  Account (Mali)) of bona fide Project Costs (excluding,
                  however. Project Costs of the nature referred to in clauses
                  (b)(iii) and (b)(iv), but including any amount representing
                  the proceeds of any insurance

                                      -40-

<PAGE>

                 policy which, pursuant to Clause 8.1.7, is permitted to be
                 applied in payment of third party liabilities or in payment of
                 the replacement costs of equipment) then payable by the
                 Borrower and which are not otherwise restricted from being paid
                 pursuant to the terms of this Agreement or any other Loan
                 Document;

          (ii)   SECOND, for deposits to the Debt Service Reserve Account to the
                 extent necessary to ensure that the amount standing to the
                 credit thereof is not less than the Required Debt Service
                 Reserve Balance;

          (iii)  THIRD, for repayment of the Principal Amount of Loans, all
                 interest accrued thereon and other payment Obligations (other
                 than as referred to in clause (b)(iv) of the Borrower then due
                 and owing:

          (iv)   FOURTH, for payments in respect of Required Hedging Agreements
                 entered into directly by the Borrower; and

          (v)    FIFTH, for payment of amounts as and when permitted to be made
                 pursuant to Clause 8.2.7.

4.2  ACCOUNT IN MALI

     (a)  PROJECT ACCOUNT (MALI)

          For the purpose of facilitating the remission of Dollars from the
          Operating Account, the conversion of such Dollars into CFA, the
          payment of Project Costs denominated in CFA and (without prejudice to
          the provisions of Clause 8.1.19) for the purpose of receiving any
          proceeds in CFA from the sale of Project Output or any other amount
          denominated in CFA, the Borrower shall establish an account
          denominated in CFA (the "PROJECT ACCOUNT (MALI)") in Bamako, Mali in
          the name of the Borrower with the Project Account Bank (Mali).

     (b)  PAYING PROJECT COSTS

          The Borrower shall be entitled to instruct the Project Account Bank
          (Offshore) from time to time to remit Dollars contained in the
          Operating Account for conversion into CFA and deposit in the Project
          Account (Mali) in an amount (subject to Clause 4.4(c)) not in excess
          of the Dollar equivalent (calculated, in the case of any
          CFA-denominated Project Costs and any amount in CFA then standing to
          the credit of the Project Account (Mali), at the then prevailing
          market rates as determined by the Project Account Bank (Offshore)) of
          the excess of:

          (i)  any Project Costs scheduled to be paid in Mali during the six (6)
               week period immediately following such remittance pursuant to the
               Cash Flow Schedule; less

          (ii) balances then standing to the credit of the Project Account
               (Mali).

                                      -41-

<PAGE>

     (c)  PAYMENTS INTO PROJECT ACCOUNT (MALI)

          Without prejudice to the provisions of Clause 8.1.19, all amounts
          received by the Borrower which are denominated in CFA shall be
          deposited into the Project Account (Mali).

     (d)  PAYMENTS FROM PROJECT ACCOUNT (MALI)

          On the terms and subject to the conditions of this Agreement
          (including Clauses 4.4(b) and 4.4(e)), the Borrower shall be entitled
          to instruct the Project Account Bank (Mali) to disburse funds from
          the Project Account (Mali) for application in the following order of
          priority:

          (i)  for payment of bona fide Project Costs denominated in CFA then
               payable by the Borrower and which is not otherwise restricted
               from being paid pursuant to the terms of this Agreement or any
               other Loan Document;

          (ii) after the payment of all amounts then due and payable of the
               nature referred to in Clauses 4 1(b)(i)  and  4.1(b)(iv), for
               payment of amounts as and when permitted to be made pursuant to
               Clause 8.2.7.

     (e)  TRANSFER FROM PROJECT ACCOUNT (MALI)

          To the extent that on any date the credit balance of the Project
          Account (Mali) shall be in excess of the aggregate of:

          (i)  the CFA equivalent of U.S.$2,500,000 (calculated at then
               prevailing market rates); and

          (ii) amounts then due to be paid from the Project Account (Mali)
               pursuant to clause (d).

          the Borrower shall effect the prompt transfer of such excess to the
          Operating Account.

4.3  DEBT SERVICE RESERVE ACCOUNT

     (a)  DEBT SERVICE RESERVE ACCOUNT

          The Borrower shall establish a single purpose interest bearing
          account denominated in Dollars (the "DEBT SERVICE RESERVE ACCOUNT")
          in the name of the Borrower in Jersey with the Project Account Bank
          (Offshore).

     (b)  MINIMUM BALANCE

          On all dates commencing with (and including) the Release Date the
          balance standing to the credit of the Debt Service Reserve Account
          shall be at least equal to the sum (such sum, the "REQUIRED DEBT
          SERVICE RESERVE BALANCE") of.

                                      -42-

<PAGE>

          (i)   the aggregate Principal Amount of Loans scheduled to be repaid
                pursuant to Clause  3.1(b)  during the six (6) month period
                commencing on such date (without giving effect to any other
                repayment or prepayment of the Principal Amount of Loans which
                might be made during such period); plus

          (ii)  the aggregate amount of interest scheduled to accrue on the
                Loans during the six (6) month period commencing on such date
                (calculated, with respect to any Loan in the case of any
                portion of such period which shall occur after the termination
                of any Interest Period then applicable to such Loan, on the
                basis of an Interest Period of six (6) months' duration); plus

          (iii) the aggregate amount of premium accruing in connection with the
                Political Risk Insurance during the six (6) month period
                commencing on such date.

     (c)  TRANSFER TO OPERATING ACCOUNT

          If on any day the balance of the Debt Service Reserve Account exceeds
          the Required Debt Service Reserve Balance calculated on such date and
          if no Default shall then have occurred and be continuing, the
          Borrower may instruct the Project Account Bank (Offshore) to transfer
          such excess on such date to the Operating Account. Without prejudice
          to the right of any Lender Party to obtain any repayment or
          prepayment of any Obligation from the Project Accounts, no amounts
          other than amounts referred to in this clause may be disbursed from
          the Debt Service Reserve Account.

4.4  GENERAL PROVISIONS RELATING TO THE PROJECT ACCOUNTS

     (a)  RESTRICTIONS

          The Borrower shall deposit moneys to, and moneys shall be disbursed
          from, the Project Accounts solely for the purposes described in this
          Clause and the other provisions of this Agreement and the other Loan
          Documents. The Borrower shall not deposit into any Project Account
          any moneys other than moneys derived from, or received in connection
          with, the Project.

     (b)  ON DEFAULT

          Without prejudice to the right of any Lender Party to obtain any
          repayment or prepayment of any Obligation from the Project Accounts,
          at any time when any Event of Default or Insolvency Default shall
          have occurred and be continuing, no withdrawal may be made from any
          Project Account without the prior consent of the Required Lenders.

     (c)  PROJECT COSTS

          No amount other than bona fide Project Costs (including any amount in
          respect of insurance proceeds permitted by the terms of Clause
          8.1.7(c)(iv) to be applied in respect of repair, replacement,
          restoration or

                                      -43-

<PAGE>

          reimbursement) payable in the amount and during the period referred
          to in the Cash Flow Schedule may be disbursed on instructions of the
          Borrower or otherwise from any Project Account; PROVIDED, HOWEVER,
          that:

          (i)    subject to the provisions of this Agreement (including the
                 other provisions of this Clause with respect to the operation
                 of the Project Accounts), any Project Costs which are
                 scheduled, pursuant to the Cash Flow Schedule, to be incurred
                 in any quarter may be incurred and paid for in any prior
                 quarter; and

          (ii)   nothing in this clause shall, or shall be deemed to, prevent:

                 (x)   disbursement of amounts from any Project Account in
                       payment of any Obligations (including pursuant to Clause
                       3.1(b)); or

                 (y)   transfer of monies between Project Accounts in accordance
                       with this Agreement and the other Loan Documents.

     (d)  REPAYING OBLIGATIONS

          Any repayment or prepayment of any Obligations to be made from any
          Project Account shall (without prejudice to the right of any Lender
          Party to obtain such repayment or prepayment from any other source,
          including the other Project Accounts) be made in Dollars by
          disbursing from the relevant Project Account to the Facility Agent
          (and, in the case of any disbursement from the Project Account
          (Mali), arranging for the conversion of the relevant disbursement
          from CFA into Dollars) an amount sufficient to provide for such
          repayment or prepayment (or, if less, the amount standing to the
          credit of such Project Account).

     (c)  PAYMENTS FROM PROJECT ACCOUNTS AFTER OCCURRENCE OF DEFAULT

          At any time when any Default shall have occurred and be continuing
          (but subject to the provisions of clause (b) if any Event of Default
          or Insolvency Default shall then have occurred and be continuing and
          subject also to the provisions of clause (c)) the Borrower shall
          instruct the relevant Project Account Bank only to disburse funds
          (including moneys remitted from the Operating Account to the Project
          Account (Mali) pursuant to Clause 4.2(b) and moneys remitted from the
          Project Account (Mali) pursuant to Clause 4.2(d)) from the Operating
          Account or any other Project Account for the purpose of payment of
          costs referred to below in the following order of priority:

          (i)    FIRST, for payment of Required Maintenance Expenditures or
                 Required Completion Expenditures;

          (ii)   SECOND, for repayment of the Principal Amount of Loans, all
                 interest accrued thereon and other payment Obligations (other
                 than as referred to in Clause 4.1(b)(iv)) of the Borrower then
                 due and owing; and

                                      -44-

<PAGE>

          (iii)  THIRD, for payments then due and owing in respect of Required
                 Hedging Agreements entered into directly by the Borrower.

          Any such instruction from the Borrower to the relevant Project
          Account Bank shall be subject to the provisions of Clause 5(a)(iii)
          of the Project Account Agreement (Offshore) and Clause 5(a)(ii) of
          the Project Account Agreement (Mali), as may be relevant.

     (f)  CASH EQUIVALENT INVESTMENTS

          At any time when no Default shall have occurred and be continuing,
          the Borrower may direct the Project Account Bank (Offshore) to invest
          amounts held in any Project Account (Offshore) in Cash Equivalent
          Investments, PROVIDED, HOWEVER, that:

          (i)    such Cash Equivalent Investments are pledged to or otherwise
                 encumbered in favour of the Facility Agent as security for
                 the Obligations pursuant to the Borrower Security Agreement
                 (Offshore) or other documentation satisfactory to the Facility
                 Agent;

          (ii)   the aggregate amount of Cash Equivalent Investments scheduled
                 to mature on or prior to the date of the next succeeding
                 repayment of the Principal Amount of the Loans scheduled to be
                 made pursuant to Clause 3.1(b) plus the aggregate cash
                 balances of the Project Accounts (Offshore) on such repayment
                 date shall be equal to or in excess of the amount of such next
                 succeeding repayment;

          (iii)  upon the occurrence of an Enforcement Event, the Facility Agent
                 shall be entitled to direct the Project Account Bank
                 (Offshore) to liquidate such Cash Equivalent Investments, it
                 being expressly understood and agreed that any breakage or
                 other costs arising from such liquidation shall be for the
                 account of the Borrower; and

          (iv)   upon the maturity of any Cash Equivalent Investments acquired
                 pursuant to this clause the proceeds thereof (and upon receipt
                 of any interest or other payment in respect of any such Cash
                 Equivalent Investment, the amount of such payment) shall
                 immediately be either deposited into the relevant Project
                 Account (Offshore) or, subject to the other provisions of this
                 Clause, invested in other Cash Equivalent Investments.

     (g)  CONTROL OF PROJECT ACCOUNTS

          The Project Accounts shall be operated, as set forth in this Clause,
          by the relevant Project Account Bank acting at the request of the
          Borrower and/or, as the case may be, certain of the Lender Parties as
          set forth in greater detail in this Clause and, in each case,
          pursuant to the terms and conditions of this Agreement and the other
          Loan Documents.

                                      -45-

<PAGE>

     (h)  INTEREST

          Any interest amounts accruing in respect of the balance of any of the
          Project Accounts shall at all times be credited to such Project
          Account and shall be added to the amounts standing to the credit of
          such Project Account and the distribution of any such amounts shall
          be subject to the terms of this Clause 4 and the other terms of this
          Agreement and each other Loan Document.

5.   INCREASED COSTS; TAXES; MARKET DISRUPTIONS; GENERAL PAYMENT PROVISIONS

5.1  DOLLARS UNAVAILABLE

     (a)  If, prior to the date on which the Agent shall make any determination
          of the LIBO Rate for any Interest Period with respect to any Loan, the
          Agent shall have determined or shall have been notified (for any
          reason specified therein) either:

          (i)    Dollar certificates of deposit or Dollar deposits, as the case
                 may be, in the relevant amount and for the relevant Interest
                 Period are not available to the Lenders in the London
                 interbank market; or

          (ii)   by reason of circumstances affecting the Lenders in the London
                 interbank market, adequate means do not exist for ascertaining
                 the interest rate applicable hereunder, then the Agent shall
                 promptly give telephonic notice of such determination
                 confirmed in writing to the Borrower (which determination
                 shall be copied to the Borrower and, in the absence of
                 manifest error, be conclusive and binding on the Borrower;
                 PROVIDED, HOWEVER, that failure to copy such notice to the
                 Borrower shall not affect the ability of the Lenders to take
                 advantage of the remaining provisions of this Clause).

     (b)  As soon as practicable following the giving of any notice described in
          clause (a), the Agent, the affected Lenders and the Borrower shall
          negotiate for a period not exceeding thirty (30) days with a view to
          agreeing an alternative basis (including an alternative to the LIBO
          Rate) for making or maintaining the Loans affected by the
          circumstances described in clause (a). During such period interest
          shall accrue on the Principal Amount of each affected Lender's
          affected Loans at the rate applicable in such Loans immediately prior
          to the giving of such notice. If no such alternative basis is agreed
          within such period, each affected Lender's affected Loans shall bear
          interest at a rate PER ANNUM equal to the sum of:

          (i)    the cost to such Lender of funding such Loans (as determined by
                 such Lender which determination shall, in the absence of
                 manifest error, be conclusive and binding on the Borrower);
                 plus

          (ii)   the Applicable Margin as in effect from time to time.

                                      -46-

<PAGE>

     (c)  As an alternative to clause (b), the Borrower may at any time elect
          that the Principal Amount of and interest on all of the affected
          Lender's then outstanding Loans which are affected by the
          circumstances described in clause (a) be immediately repaid in full
          (subject, however, to Clause 5.3).

5.2  INCREASED COSTS, ETC

     (a)  The Borrower agrees to reimburse each Lender for any increase (other
          than as specifically covered in any other provision of Clause 5) in
          the cost to such Lender of making, continuing or maintaining (or of
          its obligation to make, continue or maintain) its Loans, and for any
          reduction (other than as specifically covered in any other provision
          of Clause 5) in the amount of any sum receivable by such Lender
          hereunder in respect of making, continuing or maintaining any portion
          of any such Loan, in either case from time to time by reason of any
          Regulatory Change. In the event of the incurrence of any such
          increased cost or reduced amount, such Lender shall promptly notify
          the Agent and the Borrower thereof stating in reasonable detail the
          reason therefor, the additional amount required fully to compensate
          such Lender for such increased cost or reduced amount and the
          calculation of such additional amount. Such notice shall, in the
          absence of manifest error, be conclusive and binding on the Borrower.

     (b)  As soon as practicable following the giving of any notice described in
          clause (a), the affected Lender, the Agent and the Borrower shall
          negotiate for a period not exceeding thirty (30) days with a view to
          avoiding or minimizing the circumstances described in clause (a). If
          no steps mutually agreeable to the affected Lender, the Agent and the
          Borrower are decided upon within such thirty (30) day period, the
          Borrower may elect either to prepay the Principal Amount of, and
          interest on, such affected Lender's then affected outstanding Loans
          (subject, however, to Clause 5.3) or pay, within ten (10) days after
          the expiry of such thirty (30) day period, any additional amount
          required fully to compensate such affected Lender for the increased
          cost or reduced amount described in clause (a).

5.3  FUNDING LOSSES

     In the event any Lender shall incur any loss or expense (including any
     loss or expense incurred by reason of the liquidation or reemployment of
     Dollar deposits or other funds acquired by such Lender to make, continue,
     convert, or maintain any portion of the Principal Amount of its Loans) as
     a result of:

     (a)  any payment, prepayment or conversion of the Principal Amount of a
          Loan on a date other than the scheduled last day of the Interest
          Period applicable thereto, whether pursuant to Clause 3.1 or
          otherwise; or

     (b)  any action of the Borrower resulting in any Loans not being made,
          continued or maintained in accordance with the Borrowing Request
          relating thereto or any Continuation Notice, as the case may be,
          given in connection therewith,

                                      -47-

<PAGE>

          then, upon the request of such Lender to the Borrower (with a copy to
          the Agent), the Borrower shall pay to the Agent for the account of
          such Lender such amount as will (in the reasonable determination of
          such Lender) reimburse such Lender for such loss or expense. A
          statement as to any such loss or expense (including calculations
          thereof in reasonable detail) shall be submitted by such Lender to
          the Agent and the Borrower and shall, in the absence of manifest
          error, be conclusive and binding on the Borrower.

5.4  CAPITAL COSTS

     (a)  If any Regulatory Change affects or would affect the amount of capital
          required or expected to be maintained by any Lender or any person
          controlling such Lender, and such Lender determines (in its
          reasonable discretion) within a reasonable period following such
          Regulatory Change that the rate of return on its or such controlling
          person's capital is reduced to a level below that which such Lender
          or such controlling person could have achieved but for the occurrence
          of any such Regulatory Change, then, in any such case upon notice
          from time to time by such Lender to the Borrower, the Borrower may,
          at its option within five (5) days of receipt of such notice, either:

          (i)    pay directly to such Lender additional amounts sufficient to
                 compensate such Lender or such controlling person for such
                 reduction in rate of return; or

          (ii)   prepay the Principal Amount of and interest on such affected
                 Lender's then outstanding Loans (subject, however, to Clause
                 5.3). A statement of such Lender as to any such additional
                 amount or amounts (including calculations thereof in
                 reasonable detail) shall, in the absence of manifest error, be
                 conclusive and binding on the Borrower. In determining such
                 amount, such Lender may use any method of averaging and
                 attribution that it (in its reasonable discretion) shall deem
                 applicable.

     (b)  Notwithstanding clause (a), the Borrower shall not be obligated to pay
          any amount to any Lender in respect of any such reduction in the rate
          of return which arises as a consequence of any Regulatory Change
          implementing:

          (i)    the statement of the Basic Committee on Banking Regulations and
                 Supervisory Practices on International Convergence of Capital
                 Measurement and Capital Standards published in April 1998;
                 and/or

          (ii)   (x) the Council Directive of 17 April 1989, on the own funds of
                 credit institutions (89/299/EEC) (as amended by the Council
                 Directive of 16 March 1992 (92/16/EEC)).  (y) the Council
                 Directive of 18 December 1989, on a solvency ratio for credit
                 institutions (89/647/EEC) (as amended by the Commission
                 Directive of 31 May 1995 (95/15/EC) and the European
                 Parliament and Council Directive of 2 June 1998 (98/33/EC)
                 and/or (z) the Council Directive of 15 March 1993 on the
                 capital adequacy of investment firms and credit institutions
                 (93/6/EEC) (as amended by the

                                      -48-

<PAGE>

                 European Parliament and Council Directive of 2 June 1998
                 (98/31/EC)), as each of the foregoing items in this clause may
                 be amended from time to time, to the extent that the impact of
                 any such Applicable Law can reasonably be calculated at the
                 Effective Date. In addition, no Lender may make any claim for
                 compensation in respect of any such reduction in return to the
                 extent that such claim relates to a period occurring prior to
                 the date which is three (3) months prior to the notification
                 by such Lender of the event leading to such reduction in the
                 rate of return; PROVIDED, HOWEVER, that nothing in this
                 sentence shall restrict the ability of such Lender to make any
                 further claim for compensation in respect of any further event
                 notified to the Borrower at any time on or after such date of
                 notification.

5.5  ILLEGALITY

     (a)  If, as the result of any Regulatory Change, it becomes unlawful for
          such Lender to make any of its Loans, the obligations of such Lender
          to make any portion of the Principal Amount of such Loans shall, upon
          such determination (and telephonic notice thereof confirmed in
          writing to the Agent and the Borrower), forthwith be suspended until
          such Lender shall become aware that the circumstances causing such
          suspension no longer exist and shall have notified the Agent and the
          Borrower to such effect, at which time the obligation of such Lender
          to make its Loans shall be reinstated.

     (b)  If, as the result of any Regulatory Change, it becomes unlawful for
          such Lender to continue its Loans, then, upon notice by such Lender
          to the Agent and the Borrower, such Lender shall take all reasonable
          steps open to it including changing its lending office or
          transferring its Loans to a third party in consultation with the
          Borrower and the Agent for a period of up to thirty (30) days from
          the date of such notice, with a view to agreeing upon a mutually
          acceptable alternative arrangement which will avoid or minimize such
          illegality. If no such arrangements are agreed within such thirty
          (30) day period (or if such period of consultation shall be
          effectively prohibited by such Regulatory Change) the Borrower shall
          prepay, within five days after the expiry of such thirty (30) day
          period (or on such earlier date as may be required by such Regulatory
          Change) the Principal Amount of and interest on such affected
          Lender's then outstanding Loans (subject, however, to Clause 5.3).

5.6  TAXES

     (a)  All payments by each Obligor of principal of, and interest on, the
          Loans and all other amounts payable pursuant to this Agreement or any
          other Loan Document to any Lender Party shall be made free and clear
          of, and without deduction for any, present or future income, excise,
          stamp or other taxes, fees, duties, withholdings or other charges of
          any nature whatsoever imposed by any taxing authority of any
          jurisdiction, in each case other than franchise taxes and taxes
          imposed on or measured by the recipient's net income or receipts
          (such non-excluded items referred to as "TAXES"). In

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<PAGE>

          the event that any withholding or deduction from any payment to be
          made by any Obligor hereunder or under any other Loan Document is
          required in respect of any Taxes pursuant to any Applicable Law, then
          such Obligor will

          (i)    to the extent that any such Taxes are payable by such Obligor,
                 pay directly to the relevant authority the full amount to be so
                 withheld or deducted;

          (ii)   promptly forward to the Agent an official receipt or other
                 documentation satisfactory to the Agent (to the extent the same
                 is available to such Obligor) evidencing such payment to such
                 authority; and

          (iii)  pay to the Agent for the account of the person or persons
                 entitled thereto such additional amount or amounts as is
                 necessary to ensure that the net amount actually received by
                 such person will be equal to the full amount such person would
                 have received had no such withholding or deduction been
                 required.

          Moreover, if any Taxes are directly asserted against any Lender Party
          with respect to any payment received by such Lender Party hereunder
          or under any other Loan Document, such Lender Party may pay such
          Taxes and the relevant Obligor will promptly pay such additional
          amounts (including any penalties, interest or expenses except to the
          extent that the same are incurred as a result of the negligence or
          wilful misconduct of the relevant Lender Party) as is or are
          necessary in order that the net amount received by such Lender Party
          after the payment of such Taxes (including any Taxes on such
          additional amount) shall equal the amount such Lender Party would
          have received had such Taxes not been asserted.

     (b)  If any Obligor fails to pay any Taxes when due to the appropriate
          taxing authority or fails to remit to the Agent, for its own account
          and/or, as the case may be, the account of the relevant Lender
          Parties, the required receipts or other required documentary
          evidence, such Obligor shall indemnify the Agent or the relevant
          Lender Parties, as the case may be, for any incremental Taxes,
          interest or penalties that may become payable by any such Lender
          Party as a result of any such failure (excluding, however, any such
          incremental Taxes, interest or penalties incurred as a result of the
          gross negligence or wilful misconduct of the relevant Lender Party).
          For purposes of this Clause, a distribution hereunder or under any
          other Loan Document by the Agent or any Lender to or for the account
          of any Lender shall be deemed a payment by the Borrower.

     (c)  The Lender Parties agree to cooperate with each Obligor in completing
          and delivering or filing tax-related forms which would reduce or
          eliminate any amount of taxes of the nature referred to in clause (a)
          required to be deducted or withhold on account of any payment made by
          such Obligor under this Agreement or any other Loan Document;
          PROVIDED, HOWEVER, that no Lender Party shall be under any obligation
          to execute and deliver any such form if, in the opinion of such
          Lender Party, completion of any

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<PAGE>

          such form might reasonably be expected to result in an adverse
          consequence with respect to the business or tax position of such
          Lender Party.

5.7  MITIGATION

     (a)  In the event that the Borrower makes payment of any amount pursuant to
          Clause 5.4 or 5.6 or that any Lender Party seeks payment of an amount
          pursuant to Clause 5.4 or 5.6 or because of circumstances resulting
          in the thirty (30) day negotiation period described in any of Clauses
          5.1(b), 5.2(b) or 5.5(b), such affected Lender Party agrees that it
          will take such reasonable steps as may reasonably be open to it to
          mitigate the effects of the circumstances described in the foregoing
          Clauses (including the transfer of such Lender Party's Dollar Lending
          Office to another jurisdiction and the application for a Tax Credit);
          PROVIDED, HOWEVER, that no Lender Party shall be obligated to:

          (i)    take any such steps if, in its opinion, such steps would
                 require it to achieve less than its expected return under this
                 Agreement or would have an adverse effect upon its assets or
                 financial condition:

          (ii)   achieve any particular result in the case of any such steps
                 resulting in less than complete mitigation of the relevant
                 circumstances; or

          (iii)  take any such steps if, in its opinion, it would incur a
                 liability to the Borrower as a result thereof except pursuant
                 to clause (b).

     (b)  If, pursuant to clause (a), any Lender Party effectively obtains a
          refund of tax or credit (a "TAX CREDIT") against a payment made by
          the Borrower pursuant to Clause 5.6 (a "TAX PAYMENT"), and such
          Lender Party is able to identify such Tax Credit as being
          attributable to such Tax Payment, then such Lender Party, forthwith
          after actual receipt of such Tax Credit, shall reimburse the Borrower
          for such amount as shall be reasonably attributable to such Tax
          Payment: PROVIDED, HOWEVER, that no Lender Party shall be required to
          make any such reimbursement which would cause it to lose the benefit
          of such Tax Credit or would otherwise materially adversely affect any
          matter relating to such Lender Party in connection with the
          assessment or payment of any Taxes. Each Lender Party shall have
          absolute discretion as to whether to claim any Tax Credit, and if it
          does so claim, the extent, order and manner in which it does so. No
          Lender Party shall be obliged to disclose information regarding its
          tax affairs or computations to the Borrower.

5.8  PAYMENTS, COMPUTATIONS, ETC

          All payments by any Obligor pursuant to this Agreement or any other
          Loan Document, whether in respect of Principal Amount, interest or
          otherwise, shall (except with respect to any repayment or prepayment
          of any Obligation denominated in another currency) be paid in
          Dollars. All such payments made in Dollars shall be made by such
          Obligor to the Agent for the account of each Lender Party entitled
          thereto, by delivery of Dollars in immediately available funds to an

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<PAGE>

          account of the Agent at the Agent's Dollar Lending Office, which
          account shall be designated from time to time by notice to the
          Borrower from the Agent, for the account of each Lender Party
          entitled thereto (and, if such payment shall be of less than the due
          amount of the relevant payment Obligation then due and owing, for the
          PRO RATA benefit of each Lender Party entitled to share in such
          payment in accordance with its respective portion of the aggregate
          unpaid amount of similar payment Obligations). All such payments
          denominated in Dollars shall be made, without setoff, deduction, or
          counterclaim, not later than 11:00 a.m. New York City time, on the
          date when due. All such payments denominated in any currency other
          than Dollars shall be payable to such account, and by such time, as
          the Agent shall specify from time to time. Any payments received
          hereunder after the time and date specified in this Clause shall be
          deemed to have been received by the Agent on the next following
          Business Day. The Agent shall promptly remit to each Lender Party its
          share (calculated as aforesaid), if any, of such payments, in kind.
          Such remittance shall be to an account designated by such Lender
          Party to the Agent by notice from time to time and maintained at, in
          the case of a Lender, such Lender's Dollar Lending Office, or, in the
          case of any other Lender Party, such location as such Lender Party
          shall designate to the Agent by notice from time to time. All
          interest and fees shall be computed on the basis of the actual number
          of days (including the first day but excluding the last day)
          occurring during the period for which such interest or fee is payable
          over a year comprised of 360 days. Subject to clauses (d) and (e) of
          the definition of "INTEREST PERIOD", whenever any payment to be made
          shall otherwise be due on a day which is not a Business Day, such
          payment shall be made on the next succeeding Business Day and such
          extension of time shall be included in computing interest or fees, if
          any, in connection with such payment.

5.9  REDISTRIBUTION OF PAYMENTS

     (a)  If, at any time, the proportion which any Lender Party (a "RECOVERING
          LENDER Party") has received or recovered (whether voluntary,
          involuntary, by application of set off, or otherwise) in respect of
          its portion of any payment (a "RELEVANT PAYMENT") to be made under
          this Agreement or under any other Loan Document (other than any
          Required Hedging Agreement to which it is party) by any Obligor for
          the account of such Recovering Lender Party and one or more other
          Lender Parties is greater (the amount of such excess being herein
          called an "EXCESS AMOUNT") than the proportion thereof received or
          recovered by the Lender Party or Lender Parties entitled to
          participate in the payment Obligation to which such payment relates
          and which are receiving or recovering the smallest proportion thereof
          (which, for the purposes hereof shall include a nil receipt or
          recovery), (it being understood that all relevant payments are to be
          distributed among the Lenders in accordance with their respective
          Percentages), then:

          (i)    such Recovering Lender Party shall pay to the Agent an amount
                 equal to such excess amount;

          (ii)   there shall thereupon fall due from such Obligor to the
                 Recovering Lender Party an amount equal to the amount paid out
                 by such Recovering Lender Party pursuant to clause (a)(i), the
                 amount so

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<PAGE>

                  due being treated, for the purposes hereof, as if it were an
                  unpaid part of such Recovering Lender Party's portion of
                  such relevant payment; and

           (iii)  the Agent shall treat the amount received by it from such
                  Recovering Lender Party pursuant to clause (a)(i) as if such
                  amount had been received by it from such Obligor in respect of
                  such relevant payment and shall pay the same to the other
                  Lender Parties in accordance with their respective
                  Percentages.

           Within two (2) Business Days after any Lender Party receives or
           recovers any relevant payment otherwise than by payment through the
           Agent, that Lender Party shall notify the Agent of the amount and
           currency so received or recovered, how it was received or recovered
           and whether it represents principal, interest or other sums.
           Furthermore, no Lender Party shall be obliged to share any amount
           which it has received or recovered as a result of taking legal
           proceedings with any other Lender Party which had the opportunity to
           participate in those legal proceedings but did not do so and did not
           take separate legal proceedings to recover the relevant payments.

      (b)  If any sum (a "RELEVANT SUM")  received or recovered by a Recovering
           Lender Party in respect of any amount owing to it by any Obligor
           becomes repayable and is repaid by such Recovering Lender Party,
           then:

           (i)   each Lender Party which has received a share of such relevant
                 sum by reason of the implementation of clause (a) shall, upon
                 request of the Agent, pay to the Agent for the account of the
                 Recovering Lender Party an amount equal to its share of the
                 relevant sum; and

           (ii)  there shall thereupon fall due from the relevant Obligor to
                 each such Lender Party an amount equal to the amount paid out
                 by it pursuant to clause (b)(i), the amount so due being
                 treated, for the purposes hereof, as if it were the sum payable
                 to such Lender Party against which such Lender Party's share of
                 such relevant sum was applied.

      (c)  If any Lender shall commence any action or proceeding in any court
           to enforce its rights hereunder after consultation with the other
           Lenders and, as a result thereof or in connection therewith, shall
           receive any excess amount (as referred to in clause (a)) then such
           Lender shall not be required to share any portion of such excess
           amount with any Lender which has the legal right to, but does not,
           join in such action or proceeding (having had notice of such action
           or proceeding) or commence and diligently prosecute a separate action
           or proceeding to enforce its rights in another court.

5.10  SETOFF

      In addition to and not in limitation of any rights or remedies of
      any Lender Party under Applicable Law on otherwise, each Lender
      Party (or any branch thereof) shall, in the event that the Borrower
      defaults in the payment, repayment or prepayment when due of any
      payment Obligation, have the right to appropriate and apply to the
      payment of such Obligations owing to it (whether or not then due) any

                                      -53-

<PAGE>

      and all balances, credits, deposits, accounts or moneys of each Obligor
      then or thereafter maintained with such Lender Party in whatever currency
      or precious metals (including Gold); PROVIDED, HOWEVER, that any such
      appropriation and application shall be subject to the provisions of
      Clause 5.9.

5.11  APPLICATION OF PROCEEDS

      If at any time any amount received by the Agent is less than the amount
      then due and payable pursuant to this Agreement or any other Loan
      Document (including any proceeds received by the Agent in respect of any
      sale of, collection from, or other realisation upon, all or any part of
      any collateral security subject to any Security Agreement) such amount
      may, in the discretion of the Agent (after consultation with the
      Lenders), be held by the Agent as additional collateral security under
      the relevant Security Agreement for, or then or at any time thereafter be
      applied (after payment of any amounts payable to the Agent pursuant to
      Clauses 11.3 and 11.4 and similar provisions contained in the other Loan
      Documents) in whole or in part by the Agent against, all or any part of
      the Obligations in the following order:

     (a)  FIRST, to amounts outstanding to the Lender Parties (or any of them)
          under any Loan Document (excluding, however, any Required Hedging
          Agreement)  in respect of any amount other than interest on, or the
          Principal Amount of, any Loan;

     (b)  SECOND, to amounts outstanding to the Lender Parties (or any of them)
          under any Loan Document (excluding, however, any Required Hedging
          Agreement) in respect of interest on any Loan; and

     (c)  THIRD, pro rata to amounts outstanding to the Lender Parties (or any
          of them) under any Loan Document in respect of:

          (i)    the Principal Amount of any Loan; and

          (ii)   net payment obligations of the Borrower (or, to the extent that
                 the amount received under the relevant Loan Document relates to
                 any such net payment obligation of RRL, RRL) to any Lender
                 under any Loan Document relating to a Hedging Obligation;

          PROVIDED, HOWEVER, that after the occurrence of any event that
          constitutes or with the lapse of time, would constitute an "INSURED
          EVENT" as defined in the Political Risk Insurance the amount applied
          against the Obligations pursuant to sub-paragraph (a) above shall be
          that remaining after the application of a portion of such funds in
          respect of the provider of Political Risk Insurance's pro-rata share
          of the Lender Parties' and such provider's out-of-pocket expenses or
          recovery paid to third parties in respect of this Loan Agreement and
          the Loan Documents.

          Any surplus of such cash or cash proceeds held by the Agent and
          remaining after payment in full of all the Obligations shall be paid
          over to whomsoever may be lawfully entitled to receive such surplus.

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<PAGE>

5.12   CURRENCY OF PAYMENT

       If:

       (a)  any amount payable by any Obligor under this Agreement or any
            other Loan Document is received by a Lender Party entitled thereto
            in a currency ("PAYMENT Currency") other than the amount agreed to
            be payable in the currency in which the relevant Obligation is
            denominated (the "RELEVANT CURRENCY"), whether as a result of any
            judgement or order or the enforcement thereof, the liquidation of
            such Obligor or otherwise; and

       (b)  the amount produced by converting the Payment Currency so
            received into the Relevant Currency is less than the required amount
            of the Relevant Currency, then the relevant Obligor shall, as an
            independent obligation separate and independent from its other
            obligations contained hereunder and in any other Loan Document,
            indemnify such Lender Party for the deficiency and any loss
            sustained as a result. Such conversion shall be made promptly
            following receipt at such prevailing rate of exchange in such market
            as is reasonably determined by such Lender Party as being most
            appropriate for the conversion. The relevant Obligor shall in
            addition pay the reasonable costs of the conversion. Each Obligor
            waives any right it may have in any jurisdiction to pay any amount
            under this Agreement or any other Loan Document in a currency other
            than the Relevant Currency.

6.     CONDITIONS PRECEDENT TO MAKING LOANS

6.1    INITIAL LOANS

       The obligations of each Lender to make its initial Loan shall be subject
       to the prior or concurrent satisfaction of each of the conditions
       precedent set forth in this Clause. Unless specifically stated to the
       contrary, each document, certificate, and other Instrument delivered
       pursuant to this Clause shall be dated on, or prior to, and shall be in
       full force and effect on, the Borrowing Date of the rate Loans to he
       drawn down hereunder.

6.1.1  RESOLUTIONS, ETC

       The Agent shall have received:

       (a)  from each Obligor, a certificate of its Secretary or similar
            officer as to:

             (i)  resolutions of its Board of Directors, Management Committee or
                  similar body then in full force and effect (and, in the case
                  of the Borrower, of its shareholders) authorising the
                  execution, delivery and performance of this Agreement and each
                  other Operative Document or other document to be executed by
                  it in connection with the transactions contemplated hereby and
                  thereby;

            (ii)  the incumbency and signatures of those of its officers
                  authorised to act with respect to this Agreement and each
                  other Operative Document or other document executed or to be
                  executed by it; and

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<PAGE>

            (iii)  its Organic Documents as then in effect,

            upon which certificates each Lender Party may conclusively rely
            until it shall have received a further certificate of the Secretary
            or similar officer of such Obligor, cancelling or amending such
            prior certificate; PROVIDED, HOWEVER, that any such further
            certificate may not retroactively cancel or amend any matters
            contained in any certificate previously delivered hereunder;

       (b)  from the Independent Engineer, a certificate of its Secretary or
            similar officer as to the incumbency and signature of those of its
            officers authorised to act with respect to the Completion
            Certificates and each other document to be executed by it and each
            other matter contemplated hereby, upon which certificate each Lender
            Party may conclusively rely until it shall have received a further
            certificate of the Secretary or similar officer of the Independent
            Engineer (with prospective effect only) cancelling or amending such
            prior certificate; and

       (c)  Such other documents (certified if requested) as the Agent may
            reasonably request from any Obligor with respect to any Organic
            Document, Contractual Obligation, Operative Document or Approval.

6.1.2  SECURITY AGREEMENTS

       The Agent shall have received:

       (a)  counterparts of each Security Agreement (including the Original
            Subordination Agreements but excluding the AngloGold Security
            Agreements and the Borrower Security Agreement (Fixed Assets) duly
            executed by an Authorised Representative of each Obligor party
            thereto;

       (b)  evidence that all filings, stampings; registrations, recordings,
            notifications and other actions in all relevant jurisdictions
            necessary or, in the opinion of counsel to the Agent, advisable or
            desirable, in order to create in favour of the Lender Parties a
            valid and perfected first-priority lien over all of the collateral
            purported to be covered by each Security Agreement (including the
            Original Subordination Agreements but excluding the AngloGold
            Security Agreements and the Borrower Security Agreement (Fixed
            Assets) have been made or, as the case may be, taken and are in full
            force and effect;

       (c)  (i)  share certificates representing all of the share capital and
            voting rights of the Borrower owned by Morila Holdings (including
            any Directors Qualifying Shares and being, in the aggregate, not
            less than eighty percent (80%) of such share capital and voting
            rights);

            (ii)   share certificates representing all of the issued and paid-in
                   share capital of Morila Holdings; and

            (iii)  with respect to the shares described in each of clauses
                   (c)(i) and (c)(ii), stock powers relating thereto executed
                   in blank and such

                                      -56-

<PAGE>

            other instruments of transfer in connection therewith as the Agent
            shall reasonably require;

       (d)  copies of each Counterparty Notice (as defined in and required by
            each of the Borrower Security Agreement (Offshore Assets) and the
            Randgold Resources Security Agreement), duly executed by an
            Authorised Representative of the relevant Obligor and by an
            authorized signatory of any other person required to execute such
            Counterparty Notice; and

       (e)  copies of any documentation evidencing any Approved Subordinated
            Indebtedness then in effect.

6.1.3  RANDGOLD GUARANTEE AGREEMENT

       The Agent shall have received counterparts of the Randgold Guarantee
       Agreement, duly executed by an Authorised Representative of each of the
       Randgold Completion Guarantors.

6.1.4  PROJECT DOCUMENTS; APPROVALS

       The following conditions shall have been met:

       (a)  all Project Documents executed on or prior to the initial Borrowing
            Date (including the Construction Contract, Mining Contract, Power
            Contract, Refining Agreement and Mali Consent Agreement) shall be
            satisfactory in form and substance to all the Lenders, shall be in
            full force and effect, and copies thereof (certified as being true
            and correct copies of the originals thereof by an Authorised
            Representative of the Borrower) shall have been delivered to the
            Agent;

       (b)  the Agent shall have received such documentation (collectively, the
            "ORIGINAL STEP-IN AGREEMENTS") as it shall reasonably require as
            evidence of the rights of the Lender Parties to assume the rights
            and obligations of the Borrower (or any Affiliate thereof party to
            any Project Document) under any Project Document to which it is a
            party upon the occurrence of an Event of Default or such other
            event as the Agent shall specify; and

       (c)  the Agent shall have received a certificate of an Authorised
            Representative of RRL, to the effect that

            (i)   all Approvals of the nature referred to in the first
                  sentence of Clause 7.17(a) have been obtained, all such
                  Approvals are listed in Item 1 ("APPROVALS") of the
                  Disclosure Schedule have been obtained and each such Approval
                  is in full force and effect as at (x) in the case of each
                  Approval listed in Part A of Item 1 ("CURRENT APPROVALS") of
                  the Disclosure Schedule, the date set forth opposite such
                  Approval in such Part A, and (y) in the case of each Approval
                  listed in Part B of Item 1 ("PENDING APPROVALS") of the
                  Disclosure Schedule, a date occurring prior to the initial
                  Borrowing Date as set forth in such certificate; and

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            (ii)   a true, correct and complete copy of each such Approval is
                   attached to such certificate. Without limiting the generality
                   of the foregoing the Agent shall have received such evidence
                   as it shall require by way of proof that the Borrower is not
                   in default in connection with the payment of taxes, social
                   security and similar payments required or scheduled to be
                   paid in Mali.

6.1.5  REQUIRED HEDGING AGREEMENTS

       The Agent shall have received such evidence as it shall require in
       connection with the implementation by the Borrower of Required Hedging
       Agreements which are required by Clause 8.1.10 to be in effect on the
       initial Borrowing Date.

6.1.6 INSURANCE

       The terms of and policies of insurance required to be maintained pursuant
       to Clause 8.1.7 (including as to amount, risks covered and deductibles)
       shall be reasonably satisfactory to the Agent and the Agent shall have
       received a schedule (as amended from time to time pursuant to Clause
       8.1.7, the "INSURANCE SUMMARY") detailing all policies of insurance
       maintained in connection with the Morila Project as at the initial
       Borrowing Date and the coverage effected thereby. In addition, the Agent
       shall have received copies of all policies and binders or brokers'
       letters of undertaking regarding such policies. The Agent shall also have
       received:

       (a)  such evidence with respect to the adequacy of insurance cover with
            respect to the Morila Project as the Agent, in its sole and absolute
            discretion, may require;

       (b)  endorsements to all insurance policies maintained in connection with
            the Morila Project signed by the issuers of such policies and
            acknowledging the interests of the Lender Parties in such policies
            as referred to in Clause 8.1.7(b);

       (c)  evidence reasonably satisfactory to it that all premiums (or
            deposits in connection therewith) required to be paid in order to
            ensure that the policies referred to in this Clause are in full
            force and effect, have been paid and that all such policies are in
            full force and effect; and

       (d)  counterparts of the Insurance Consultant's Certificate duly executed
            by the Insurance Consultant

6.1.7  PROJECT ACCOUNTS: PRIOR CONTRIBUTIONS

       The Facility Agent shall have received:

       (a)  evidence that the Project Accounts have been established;

       (b)  counterparts of the Project Account Agreement (Offshore) duly
            executed by the Project Account Bank (Offshore) and an Authorised
            Representative of the Borrower;

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       (c)  counterparts of the Project Account Agreement (Mali) duly executed
            by the Project Account Bank (Mali) and an Authorised Representative
            of the Borrower;

       (d)  evidence of the aggregate amounts (the "COMPLETION GUARANTOR PRIOR
            CONTRIBUTION") contributed by the Completion Guarantors to the
            Borrower prior to the initial Borrowing Date by way of Capital
            Contributions and/or Approved Subordinated Indebtedness and/or other
            Indebtedness (which amount shall not be less than U.S.$25,000,000)
            together with a certificate of the chief financial Authorised
            Representative of each Completion Guarantor containing details of
            the portion of such amount which has been utilised prior to the
            initial Borrowing Date by the Borrower in the development and
            construction of the Mine;

       (e)  evidence that the Completion Deposit Account shall have been funded
            by RRL (including from the proceeds of the repayment of Initial
            Repayable Intercompany Indebtedness made from the proceeds of the
            initial Loans) in a principal amount of not less than
            U.S.$5,000,000; and

       (f)  a copy (certified as a true and correct copy of the original thereof
            by an Authorised Representative of RRL) of the Barnex Loan
            Agreement.

6.1.8  PROCESS AGENT ACCEPTANCE

       The Agent shall have received a counterpart of the Process Agent
       Acceptance, duly executed by the Process Agent, together with evidence of
       the appointment of the Process Agent by each Obligor.

6.1.9 OPINIONS OF LEGAL ADVISERS

       The Agent shall have received opinions from:

       (a)  Cabinet Berthe, legal advisers in Mali to the Obligors,
            substantially in the form of Exhibit E-1 attached hereto;

       (b)  Ogier & Le Masurier, legal advisers in Jersey to the Obligors,
            substantially in the form of Exhibit E-2 attached hereto;

       (c)  Bowman Gilfillan, Inc., legal advisers in South Africa to the
            Obligors, substantially in the form of Exhibit E-3 attached hereto;

       (d)  Herbert Smith, special legal advisors in France to the Lender
            Parties, substantially in the form of Exhibit E-4 attached hereto;
            and

       (e)  Mayer, Brown & Platt, legal advisers in England to the Lender
            Parties, substantially in the form of Exhibit E-5 attached hereto.

       Each Obligor hereby instructs its legal advisers referred to in clauses
       (a) to (c) to deliver the opinions referred to in such clauses to the
       Lender Parties.

6.1.10 DEVELOPMENT PLAN; ENVIRONMENTAL IMPACT STUDY; TECHNICAL REVIEW

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       The Lenders shall have received:

       (a)  the initial Cash Flow Schedule, initialled for purposes of
            identification by each of RRL and the Agent together with a copy of
            the remainder of the Development Plan certified by an Authorised
            Representative of RRL as being a true and accurate copy of the
            original thereof;

       (b)  the Environmental Impact Study certified by an Authorised
            Representative of RRL as being a true and accurate copy of the
            original thereof; and

       (c)  the Technical Review certified as a true and correct version thereof
            by the Independent Engineer.

6.1.11 INITIAL COMPLIANCE CERTIFICATE

       The Agent shall have received a Compliance Certificate calculated as of
       the initial Borrowing Date, together with such information concerning the
       calculations and assumptions used by the Borrower in preparing such
       Compliance Certificate as the Agent shall have requested.

6.1.12 INDEPENDENT ENGINEER'S CERTIFICATE

       The Facility Agent shall have received counterparts of the Independent
       Engineer's Certificate duly executed by the Independent Engineer.

6.1.13 CLOSING FEES, EXPENSES, ETC

       The Agent shall have received (including, to the extent necessary, from
       the proceeds of the initial Loans) for its own account, or for the
       account of the relevant Lender Parties, as the case may be, all fees due
       and payable on or prior to the initial Borrowing Date and all fees and
       expenses payable pursuant to Clause 11.3, to the extent then invoiced.

6.1.14 POLITICAL RISK INSURANCE

       (a)  Each Lender shall have been named as a beneficiary (which term shall
            include a policy naming the Agent or the Arrangers as insured and
            the Lenders as co-insured) in respect of a policy of Political Risk
            Insurance complying with the definition of such term, such Political
            Risk Insurance shall be in full force and effect, and the Borrower
            shall have paid to the Agent all premiums due pursuant to such
            Political Risk Insurance with respect to the shorter of:

            (i)    the first twenty-four month period of coverage of such
                   insurance; or

            (ii)   the period from the commencement of coverage of such
                   insurance until 30 June, 2000.

       (b)  The Agent shall have received confirmation from the issuer of the
            Political Risk Insurance that the terms and conditions of this
            Agreement and the other Operative Documents are consistent with, and
            in compliance with, the requirements of the Political Risk Insurance
            with respect to the form,

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            content and substance of the documentation relating to the
            financing of the Morila Project.

6.1.15 BONDHOLDERS' WAIVER

       The Agent shall have received a certificate of an Authorised
       Representative of the Borrower:

       (a)  attaching thereto true and correct copies of the documentation
            relating to the RECI. Convertible Bonds; and

       (b)  confirming the validity of, and attaching a true and correct copy
            of, documents waiving (in connection with each relevant Security
            Agreement) the negative pledge restrictions assumed by RECI and
            certain affiliates in connection with such documentation.

6.2    ALL LOANS

       The obligations of the Lenders to make any Loan (including the initial
       Loans) shall be subject to the prior or concurrent satisfaction of the
       additional conditions precedent set forth in this Clause.

6.2.1  COMPLIANCE WITH WARRANTIES, NO DEFAULT, ETC

       The representations and warranties of each Obligor set forth in Clause 7
       and those of each Obligor, AngloGold and AngloGold (BVI) set forth in
       each other Loan Document to which such Obligor and/or, as the case may
       be, AngloGold and/or AngloGold (BVI) is a party shall be true and correct
       in all material respects as of the date initially made, and both
       immediately before and immediately after the making of the Loans (but, if
       any Default of the nature referred to in Clause 9.1.5 shall have occurred
       with respect to any other indebtedness, without giving effect to the
       application, directly or indirectly, of the proceeds of such Loans to
       such other indebtedness):

       (a)  such representations and warranties shall be true and correct in all
            material respects with the same effect as if then made (unless
            stated to relate solely to an earlier date, in which case such
            representations and warranties shall be true and correct as of such
            earlier date); and

       (b)  no Default shall have then occurred and be continuing.

6.2.2  BORROWING REQUEST

       The Agent shall have received a duly completed Borrowing Request for such
       Loans. The delivery of a Borrowing Request and the acceptance by the
       Borrower of the proceeds of the Loans shall constitute a representation
       and warranty by each Obligor on the relevant Borrowing Date (both
       immediately before and immediately after giving effect to the making of
       the Loans and the application of the proceeds thereof) that the
       statements made in Clause 6.2.1 are true and correct.

6.2.3  SATISFACTORY LEGAL FORM

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       All documents executed or submitted pursuant hereto by or an behalf of
       any person shall be satisfactory in form and substance as to legal
       matters to the Lender Parties and their legal advisers acting reasonably
       and the Agent shall have received all information, and such counterpart
       originals or such certified or other copies of such Instruments related
       to the conditions precedent described in this Clause, as the Agent or its
       legal advisers may reasonably request.

7.     REPRESENTATIONS AND WARRANTIES

       In order to induce the Lender Parties to enter into this Agreement and,
       in the case of the Lenders, to make and continue Loans hereunder.

       (a)  the Borrower represents and warrants into each Lender Party as set
            forth in this Clause; and

       (b)  the Randgold Completion Guarantors make the representations and
            warranties set out in Clauses 7.2 through 7.5 and Clauses 7.7, 7.8,
            7.11 and 7.19 to each Lender Party.

       The representations and warranties set forth in this Clause shall be made
       upon the delivery of each Borrowing Request and each Continuation Notice,
       and shall (except with respect to the representations and warranties
       referred to in Clause 7.3(b) or 7.3(c) and in Clause 7.19) be deemed to
       have been made on each Borrowing Date (both immediately before and
       immediately after the application of the proceeds of the relevant Loans),
       the Mechanical Completion Date, the Economic Completion Date, the Release
       Date and on any date on which any person grants further security to any
       Lender Party pursuant to Clause 8.1.16; PROVIDED, HOWEVER, that no
       Randgold Completion Guarantor will be deemed (but without prejudice to
       any liability arising as a result of any breach of any such
       representation or warranty made by any Randgold Completion Guarantor on
       or prior to the Release Date) to have made any new representation or
       warrant pursuant to the terms of this Clause at any time following the
       Release Date.

7.2    ORGANISATION, POWER, AUTHORITY, ETC

       The Borrower is a company (societe anonyme) validly organised and
       existing under the laws of Mali. Each of RRL and Morila Holdings is a
       company duly incorporated and validly existing under the laws of Jersey.
       Each Obligor is duly qualified to do business and is in good standing
       (where such concept is applicable) as a foreign company in each
       jurisdiction where the nature of its business makes such qualification
       necessary and where the failure to so qualify would have a Materially
       Adverse Effect with respect to such Obligor and has full power and
       authority, and holds all requisite Approvals, to own and hold under lease
       its property, to sue and to be sued in its own name and to conduct its
       business substantially as currently conducted by it. Each Obligor has
       full power and authority to enter into and perform its obligations under
       this Agreement and the other Operative Documents executed or to be
       executed by it and, in the case of the Borrower, to obtain Loans
       hereunder.

7.3    DUE AUTHORISATION: NON-CONTRAVENTION

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<PAGE>

The execution and delivery by each Obligor of this Agreement and each other
Operative Document executed or to be executed by it and the performance by each
Obligor of its obligations hereunder and thereunder, and the receipt of the
Loans hereunder in the case of the Borrower:

       (a)  have been duly authorised by all necessary corporate action on its
            part;

       (b)  do not require any Approval (other than those Approvals referred to
            in Item l ("APPROVALS") of the Disclosure Schedule);

       (c)  do not and will not conflict with, result in any violation of, or
            constitute any default under, any provision of any Requirement of
            Law or Approval binding on it;

       (d)  in the case of any Requirement of Law or Approval relating to the
            Morila Project generally and not applying to the Loan Documents, do
            not and will not conflict with, result in any violation of or
            constitute any default under such Requirement of Law or Approval
            which would be likely to have a Material Adverse Effect with respect
            to such Obligor; and

       (e)  will not result in or require the creation or imposition of any lien
            on any of its properties pursuant to the provisions of any
            Contractual Obligation (other than pursuant to this Agreement and
            each Security Agreement to which such Obligor is a party).

7.4    VALIDITY, ETC

       (a)  This Agreement constitutes, and each other Operative Document
            executed or to be executed by each Obligor constitutes, or on the
            due execution by each party thereto and delivery thereof will
            constitute, the legal, valid, and binding obligation of such Obligor
            enforceable in accordance with its terms (subject to bankruptcy and
            insolvency laws and other similar laws of applicability to creditors
            generally and to general equitable principles).

       (b)  Upon taking of the various actions described in Clause 6.1.2 (and,
            in the case of the AngloGold Security Agreements, the various
            actions described in the First Schedule to the Supplemental
            Agreement), each Security Agreement will create in favour of the
            Agent (for the rateable benefit of the Lender Parties), a valid and
            perfected first-priority lien on all of the assets, properties,
            rights and revenues referred to in each such Security Agreement as
            security for the relevant obligations expressed to be covered
            thereby, subject to no liens, except:

            (i)    for mandatory provisions of Applicable Law; and

            (ii)   as specifically permitted by this Agreement or such Security
                   Agreement.

7.5    LEGAL STATUS

       No Obligor nor any of their respective properties or revenues enjoys any
       right of immunity from suit, set-off, attachment prior to judgment or in
       aid of execution, or

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       execution on a judgment in respect of their respective obligations under
       any of the Loan Documents to which it is a party.

7.6    FINANCIAL INFORMATION

       All balance sheets and all statements of operations, shareholders' equity
       and cash flow and all other financial information relating to each
       Obligor which have been furnished by or on behalf of such Obligor to the
       Agent for the purposes of or in connection with this Agreement or any
       transaction contemplated hereby. including:

       (a)  the consolidated and individual balance sheet of RRL at 31 March,
            1999, and the related consolidated statements of operations,
            shareholders' equity and cash flow of RRL, as audited by
            Pricewaterhouse Coopers; and

       (b)  the balance sheet of the Borrower at 30 September, 1999, and a
            statement of Capital Expenditures in respect of the Morila Project
            as at 30 September, 1999, in each case certified by the chief
            financial Authorised Representative of the Borrower;

       have been prepared in accordance with GAAP consistently applied
       throughout the periods involved (except as disclosed therein) and present
       fairly the financial position of the relevant Obligor as at the dates
       thereof and the results of its operations for the periods then ended. No
       Obligor has on the date hereof any material Contingent Liability or
       liability for taxes, long-term leases or unusual forward or long-term
       commitments which are not reflected in its financial statements described
       in this Clause or in the notes thereto.

7.7    ABSENCE OF DEFAULT

       No Obligor is in default in the payment of (or in the performance of any
       material obligation applicable to) any indebtedness in excess of
       U.S.$1,000,000, no Default is outstanding or would result from the making
       of any Loan and no Obligor is in default under any material provision of
       any Project Document to which it is party, any Requirement of Law or the
       terms or conditions upon which any Approval has been granted.

7.8    LITIGATION, ETC

       There is no pending or, to the knowledge of any Obligor, threatened
       litigation, arbitration, employment dispute or governmental investigation
       or proceeding against any Obligor or any or their respective affiliates
       or to which any of any such entity's business, operations, properties,
       assets (including the Mine), revenues or prospects is subject which could
       reasonably be expected to have a Materially Adverse Effect with respect
       to such Obligor. All pending or threatened litigation, arbitration,
       employment disputes and governmental investigations and proceedings
       against any Obligor or to which any of any such entity's business.
       operations, properties. assets (including the Mine), revenues or
       prospects is subject as of the date of the delivery of the initial
       Borrowing Request are disclosed in Item 2 ("LITIGATION") of the
       Disclosure Schedule. In the case of any litigation so disclosed, there
       has been no development in such litigation since the Effective Date

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       which could reasonably be expected to have a Materially Adverse Effect
       with respect to any Obligor.

7.9    MATERIALLY ADVERSE EFFECT

       Since 31 March, 1999 and since the date of the most recent financial
       statements relating to each Obligor delivered pursuant to Clause
       8.1.1(a), there have been no occurrences which, individually or in the
       aggregate, have or may reasonably be expected to have a Materially
       Adverse Effect with respect to any Obligor.

7.10   BURDENSOME AGREEMENTS

       No Obligor is a party or subject to any Contractual Obligation or Organic
       Document which has or may reasonably be expected to have a Materially
       Adverse Effect with respect to such Obligor.

7.11   TAXES AND OTHER PAYMENTS

       Each Obligor has:

       (a)  filed all tax returns (including all property tax returns and other
            similar tax returns applicable to the Mine) and reports required by
            Applicable Law to have been filed by it, and

       (b)  paid all taxes and governmental charges thereby shown to be owing
            and all claims for sums due for labour, material, supplies, personal
            property and services of every kind and character provided with
            respect to, or used in connection with its business (including the
            Mine) and no claim for the same exists except as permitted
            hereunder, except any such taxes, charges or amounts:

            (i)    not in excess of U.S.$1,000,000;

            (ii)   which has remained unpaid for a period of less than one
                   hundred and twenty (120) days from date on which payment was
                   originally due (in respect of which the relevant Obligor will
                   pay prior to the end of such period); or

            (iii)  which are being diligently contested in good faith by
                   appropriate proceedings and for which adequate reserves in
                   accordance with GAAP shall have been set aside on its books.
                   Summary details of taxes required to be paid in connection
                   with the development of the Morila Project are set forth in
                   Item 10 ("TAXES") of the Disclosure Schedule.

7.12   MINING RIGHTS, PROJECT ASSETS, INSURANCE

       The Borrower has acquired all Project Assets and all Mining Rights, and
       has obtained such other surface and other rights as are necessary on the
       date the representation contained in this Clause is made or repeated from
       time to time for access rights, water rights, plant sites, tailings
       disposal, waste dumps, ore dumps, abandoned heaps or ancillary facilities
       which are required in connection with the

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<PAGE>

       development of the Project substantially in accordance with the
       Development Plan. All such Project Assets, Mining Rights and other rights
       are sufficient in scope and substance for the development of the Project
       as contemplated by the Development Plan and no part of the purchase price
       payable in connection with the acquisition of such Mining Rights and
       other rights (other than any royalty payments, if any, payable pursuant
       to royalty agreements set forth in Item 9 ("ROYALTY AGREEMENTS") of the
       Disclosure Schedule) remains unpaid. The Borrower has made (or has caused
       to be made) full disclosure of all relevant issues and facts to the
       issuer of each insurance policy maintained in connection with the Morila
       Project such that no such issuer is entitled to vitiate, cancel or
       otherwise refuse or decline to honour the terms of, or any pay claims in
       respect of, any such insurance policy.

7.13   OWNERSHIP AND USE OF PROPERTIES; LIENS

       (a)  The Borrower has good title to all of the Project Assets it owns or
            purports to own, free and clear of all liens or claims (including
            infringement claims with respect to patents, trademarks, copyrights
            and the like) except as permitted pursuant to Clause 8.2.3 or as
            disclosed in Item 3 ("ASSETS; PROPERTIES") of the DIsclosure
            Schedule.

       (b)  The Borrower does not own any assets or properties other than those
            derived from or used in connection with the Project and those
            incidental to the operation of the Mine.

       (c)  The Borrower has complied in all material respects with all material
            Contractual Obligations relating to any material Project Asset
            leased, operated, licensed or used by it and all Instruments
            pursuant to which it is entitled to lease, operate, license or use
            any such Project Assets are in full force and effect.

7.14   SUBSIDIARIES

       The Borrower has no subsidiaries. Each Relevant Group Company as at the
       date of the Supplemental Agreement (other than AngloGold and AngloGold
       (BVI) is set forth in Item 4 ("RELEVANT GROUP COMPANIES") of the
       Disclosure Schedule.

7.15   INTELLECTUAL PROPERTY

       The Borrower owns, licenses or otherwise possesses all such patents,
       patent rights, trademarks, trademark rights, trade names, trade name
       rights, service marks, service mark rights and copyrights as it considers
       necessary for the conduct of its business as now conducted without,
       individually or in the aggregate, any infringement upon rights of other
       persons which could reasonably be expected to have a Materially Adverse
       Effect with respect to the Borrower.

7.16   TECHNOLOGY

       The Borrower owns or has the right to use all technologies and processes
       required by it to consummate the Project and operate the Mine (including
       the achievement of Mechanical Completion and Economic Completion by the
       respective dates

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<PAGE>

       contemplated in this Agreement) as contemplated by the Development Plan
       and in accordance with good industry practice, except where any such
       non-ownership or lack or right to use any such technology or process
       would not be reasonably likely to have a Materially Adverse Effect with
       respect to the Borrower. There are no material licence agreements
       granting any other person rights in any patented process or the right to
       use technical or secret know-how that are required for the consummation
       of the Project or the operation of the Mine.

7.17   APPROVALS; PROJECT DOCUMENTS.

       (a)  All Instruments have been entered into and all Approvals have been
            obtained (other than those identified in Part B ("PENDING
            APPROVALS") of Item 1 of the Disclosure Schedule as being scheduled
            to be obtained after the date the representation referred to in this
            clause is made or repeated from time to time) which are required to:

            (i)    consummate the Project and facilitate the operation of the
                   Mine (including the achievement of Mechanical Completion,
                   Economic Completion and the Release Date by December 31,
                   2001) in accordance with the Development Plan; and

            (ii)   enable each Obligor to enter into, and perform its
                   obligations under, each Operative Document to which it is a
                   party. All Approvals necessary to obtain in connection with
                   the consummation of the Project, the operation of the Mine in
                   accordance with the Development Plan and the execution and
                   implementation of the Operative Documents are listed in Item
                   1 ("APPROVALS") of the Disclosure Schedule.

       (b)  Each of the Project Documents is:

            (i)    in full force and effect;

            (ii)   enforceable against each Obligor party thereto (and by such
                   Obligor against all other parties thereto) in accordance with
                   its terms (subject to bankruptcy and insolvency laws and
                   other similar laws of applicability to creditors generally
                   and to general equitable principles); and

            (iii)  in the form previously or concurrently delivered to the
                   Facility Agent pursuant to this Agreement. All performance
                   required under each Project Document of each Obligor (and, to
                   the best of the knowledge of each Obligor, of each other
                   party) required at the date of the making of this
                   representation from time to time has occurred (except:

                   (A)  performance required by any relevant Project Document to
                        be performed at a later date; and

                   (B)  performance of any Obligation contained in any such
                        Project Document which is not material to the Project or
                        to the

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                        performance of such Project Document taken as a whole),
                        and no default (however denominated) in the performance
                        of the obligations of any Obligor, (or, to the best of
                        the knowledge of each Obligor, of any other party) under
                        any Project Document (except any such default in the
                        performance of any such obligation which is not material
                        to the Project or to the performance of such Project
                        Document taken as a whole) has occurred and is
                        continuing.

7.18   ADEQUACY OF INFORMATION

       The factual statements contained in each of the Development Plan, the
       Environmental Impact Assessment and the Insurance Summary, based upon the
       assumptions stated therein, are true and correct in all material respects
       and do not omit to state any information or fact the omission of which
       might render any conclusion or statement contained in any such document
       misleading in any material respect. The Development Plan contains summary
       descriptions of the Project Assets and the Project and the operation of
       the Mine as proposed to be conducted throughout the Project Period. The
       Environmental Impact Assessment, the Development Plan and the Insurance
       Summary contain summary descriptions of the environmental, technical and
       insurance aspects of the Project Assets and the Project and the operation
       of the Mine as now conducted and as proposed to be conducted throughout
       the Project Period. The financial projections, estimates and other
       expressions of view as to future circumstances contained in the
       Feasibility Study are fair and reasonable and, to the best of each
       Obligor's knowledge, have been arrived at after reasonable enquiry and
       have been made in good faith by the persons responsible therefor.

7.19   ENVIRONMENTAL WARRANTIES

       (a)  Except as set forth in Part A ("ENVIRONMENTAL MATTERS-PROJECT") of
            Item 6 of the Disclosure Schedule:

            (i)    all facilities and property (including underlying
                   groundwater) owned, operated, leased or utilised in
                   connection with the Project have been, and continue to be,
                   owned, operated, leased or utilised by such person in
                   material compliance with the standards set out in, referred
                   to or utilised by the Environmental Impact Study and with the
                   standards for material compliance with environmental and
                   related matters stipulated by the World Bank and as in effect
                   on the date of the Supplemental Agreement (the "ENVIRONMENTAL
                   REVIEW STANDARDS") and in material compliance with material
                   Environmental Laws;

            (ii)   there have been no past, and there are no pending or
                   threatened:

                   (x)  claims, complaints, notices or requests for information
                        received by any person in connection with the Project
                        with respect to any alleged violation of Environmental
                        Review Standards or any Environmental Law which have not
                        been cured or satisfied; or

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<PAGE>

                   (y)  complaints, notices or inquiries in connection with the
                        Project regarding potential liability under any
                        Environmental Review Standard or Environmental Law which
                        complaints, notices or inquiries have resulted in, or
                        would be reasonably likely to result in, any action
                        being taken by any Governmental Agency or any other
                        person;

            (iii)  all Environmental Review Standards and Approvals relating to
                   environmental matters which are necessary for the Project
                   have been issued and are being materially complied with; and

            (iv)   no conditions exist at, on or under any property now or
                   previously owned, leased, operated, licensed or used by the
                   Borrower or, so far as the Borrower is aware having made
                   enquiry, any other Project Party in connection with the
                   Project which, with the passage of time, or the giving of
                   notice or both, would give rise to liability under any
                   Environmental Review Standard or Environmental Law that,
                   individually or in the aggregate, has, or may reasonably be
                   expected to have, a Materially Adverse Effect with respect to
                   the Borrower.

       (b)  Without prejudice to clause (a), except as disclosed in Part B
            ("ENVIRONMENTAL MATTERS - GROUP") of Item 6 of the Disclosure
            Schedule:

            (i)    each Relevant Group Company has complied with all applicable
                   Environmental Laws, except where the failure to be in
                   compliance therewith (x) would not reasonably be expected to
                   have a Materially Adverse Effect with respect to any Obligor
                   or (y) would not reasonably be expected to result in any
                   action being taken by any Governmental Agency or any other
                   person charged under law with a responsibility to enforce any
                   Environmental Law;

            (ii)   no Relevant Group Company manages any Hazardous Materials at
                   any of its facilities or assets in violation of any
                   Environmental Laws, except where any such violation would not
                   reasonably be expected to have a Materially Adverse Effect
                   with respect to any Obligor, and

            (iii)  there are no events, conditions or circumstances occurring at
                   or relating to any facilities or assets of any Relevant Group
                   Company involving any environmental pollution or
                   contamination that have, or would reasonably be expected to
                   have, a Materially Adverse Effect with respect to any
                   Obligor.

7.20   PARI PASSU

       The payment Obligations of each Obligor under each Loan Document to which
       it is a party rank at least PARI PASSU in right of payment with all of
       such Obligor's other unsecured indebtedness, other than any such
       indebtedness which is preferred by mandatory provisions of Applicable
       Law.

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7.21   ROYALTIES, ETC

       Other than as disclosed in Item 9 ("ROYALTY AGREEMENTS") of the
       Disclosure Schedule, neither the Mine nor the Borrower's interest therein
       is subject to any royalty, net smelter return obligation, net profit
       payment or similar arrangement.

8.     COVENANTS

8.1    CERTAIN AFFIRMATIVE COVENANTS

       Each Obligor agrees with each Lender, Party that, until all Commitments
       have terminated and all Obligations have been paid and performed in full,
       it will perform its respective obligations set forth in this Clause;
       PROVIDED, HOWEVER, that (except in the case of Clauses 8.1.4, 8.1.18 and
       8.1.20) no Randgold Completion Guarantor will be under any further
       obligation under this Clause 8.1 (but without prejudice to any liability
       arising as a result of any breach on or prior to the Release Date of any
       undertaking of any Randgold Completion Guarantor contained in this Clause
       8.1) at any time following the Release Date.

8.1.1  FINANCIAL INFORMATION, ETC

       The Borrower (and/or where stated below, the Randgold Completion
       Guarantors) will furnish, or will cause to be furnished, to the Agent
       (and, in the case of clause (c), the Independent Engineer) copies (with
       sufficient copies for each other Lender Party) of the following financial
       statements, reports and information:

       (a)  promptly when available, and in any event within one hundred and
            eighty (180) days after the close of each Fiscal Year of each
            Randgold Completion Guarantor, the consolidated balance sheet of
            such Randgold Completion Guarantor and its subsidiaries at the close
            of such Fiscal Year and the related consolidated statements of
            operations, shareholders' equity and cash flow of such Randgold
            Completion Guarantor and its subsidiaries, in each case with
            comparable information at the close of and for the prior Fiscal
            Year, and reported on without Impermissible Qualification by
            Pricewaterhouse Coopers or independent certified public or chartered
            accountants of recognised international standing, together with a
            certificate from such accountants to the effect that, in making the
            examination necessary for the signing of such annual report by such
            accountants, they have not become aware of any Default that has
            occurred and is continuing, or, if they have become so aware,
            describing such Default;

       (b)  promptly when available, and in any event within forty five (45)
            days after the close of each of the first three Fiscal Quarters of
            each Fiscal Year of each Obligor:

            (i)    in the case of the Borrower, its balance sheet at the close
                   of such Fiscal Quarter, and its related statements of
                   operations, shareholders' equity and cash flow; and

            (ii)   in the case of each Randgold Completion Guarantor, its
                   consolidated balance sheet at the close of such Fiscal
                   Quarter, and

                                      -70-

<PAGE>

                   its related consolidated statements of operations,
                   shareholders' equity and cash flow,

            in each such case in respect of such related statements, for such
            Fiscal Quarter and for the period commencing at the close of the
            previous Fiscal Year and ending with the close of such Fiscal
            Quarter (with comparable information at the close of and for the
            corresponding Fiscal Quarter of the prior Fiscal Year and for the
            corresponding period during such prior Fiscal Year) and certified by
            an accounting or financial Authorised Representative of the relevant
            Obligor:

       (c)  within thirty (30) Business Days after March 31, June 30, September
            30 and December 31 of each calendar year and on the Mechanical
            Completion Date, the Economic Completion Date and the Release Date,
            a Compliance Certificate calculated as of such March 31, June 30,
            September 30 or December 31 or as of the Mechanical Completion Date,
            the Economic Completion Date or the Release Date, as the case may
            be, indicating, INTER ALIA, compliance with each of the ratios set
            forth in Clause 9.1.19 on each Calculation Date coinciding with or
            scheduled to occur thereafter, together with such information
            concerning the calculations and assumptions used by the Borrower in
            preparing such Compliance Certificate as the Agent may request;

       (d)  promptly upon receipt thereof, copies of all detailed financial and
            management reports submitted to each Obligor by a certified public
            accountant in connection with each annual or interim audit made by
            such certified public accountant of the books of such Obligor;

       (e)  annually, on or before each anniversary of the initial Borrowing
            Date, a memorandum prepared by the Borrower summarising the then
            outstanding insurance coverage with respect to the Mine together
            with a certificate or certificates of insurance prepared by the
            Insurance Consultant and in form and substance satisfactory to the
            Agent confirming that:

            (i)    all such insurance coverage is in full force and effect and
                   all premiums payable in connection therewith have been paid;

            (ii)   in the opinion of the Insurance Consultant, such insurance is
                   sufficient for the purposes of the Mine and is responsive to
                   the requirements of Clause 8.1.7;

            (iii)  the Agent is named as the first loss payee under all policies
                   of property insurance and as an additional insured under all
                   policies of liability insurance; and

            (iv)   the insurers under such insurance policies have undertaken in
                   writing not to amend or terminate such policies without at
                   least thirty (30) days' prior written notice thereof to the
                   Agent and have entered into such undertakings as are required
                   pursuant to Clause 8.1.7; it being agreed that such
                   certificate shall be conclusive as against the Borrower both
                   as to the amount of insurance required

                                      -71-

<PAGE>

                   and the perils against which coverage is required and the
                   Borrower shall immediately insure in accordance with such
                   certificate;

       (f)  as promptly as practicable after the occurrence of the relevant
            event details as to any:

            (i)    material disputes with such of its insurance carriers as are
                   providing insurance coverage with respect to the Mine;

            (ii)   failure to pay any insurance premium as and when required
                   that might result in the cancellation of any policy
                   implemented in connection with, or relating to, the Mine;

            (iii)  material reduction in the amount of, or any other material
                   change in, insurance or reinsurance coverage maintained in
                   connection with the Mine;

            (iv)   failure to comply with its obligations under Clause 8.1.7, in
                   each case stating the reasons therefor, together with any
                   other information concerning the insurance and reinsurance
                   coverage required to be maintained by it as the Agent shall
                   have reasonably requested;

            (v)    occurrence of any actual or potential casualty or loss which
                   is covered by the terms of any policy of insurance maintained
                   in connection with the Mine;

            (vi)   notices received from any insurance carriers with respect to
                   the cancellation of or proposed cancellation of any policy of
                   insurance maintained in connection with the Mine (and, in the
                   case of the notification of any such details, stating the
                   reasons therefore, together with any other information
                   concerning the insurance coverage required to be maintained
                   pursuant to this Agreement as the Agent shall have reasonably
                   requested); and

            (vii)  occurrence of any event which, to any Obligor's knowledge, is
                   of the nature referred to in the Political Risk Insurance as
                   an event which is insured thereby;

       (g)  without prejudice to the provisions of Clause 8.1.18, 8.2.14,
            8.2.15, 9.1.7 or 9.1.8, the Borrower will furnish promptly upon the
            effectiveness of occurrence thereof, as the case may be, copies of
            any Instrument, correspondence or other item of documentation
            amending, supplementing or otherwise modifying the material
            provisions of any Project Document and a detailed report of any
            agreed material departure from the performance by any party of any
            of its material obligations under any Project Document;

       (h)  promptly upon receiving knowledge of the same, notice of the
            occurrence of any default or event of default (howsoever denominated
            but without prejudice to the provisions of Clause 9.1.7 or 9.1.8) by
            any party relating to a material provision of any of the Project
            Documents;

                                      -72-

<PAGE>

       (i)  without limiting any other provision of Clause 8.1, as soon as
            possible and in any event within three (3) Business Days after the
            occurrence of any Default, the Borrower will furnish a statement of
            the chief financial Authorised Representative of the Borrower
            setting forth details of such Default and the action which has been
            taken, and which it is proposed be taken, with respect thereto;

       (j)  as soon as possible and in any event within five (5) Business Days
            after:

            (i)    the occurrence of any adverse development with respect to any
                   litigation, arbitration, employment dispute, or governmental
                   investigation or proceeding described in Clause 7.8 which has
                   a reasonable likelihood of having a Materially Adverse.
                   Effect with respect to any Obligor; or

            (ii)   the commencement of any litigation, arbitration, employment
                   dispute or governmental investigation or proceeding of the
                   type described in Clause 7.8, the relevant Obligor will
                   furnish to the Agent notice thereof and such details in
                   connection therewith as the Agent may reasonably request;

       (k)  Without limiting any other provision of Clause 8.1, notice of the
            occurrence as soon as possible (and in any event within three (3)
            Business Days) after any Obligor knows or has reason to know of any
            circumstance which has a reasonable likelihood of having a
            Materially Adverse Effect with respect to such Obligor;

       (l)  not more than ten (10) Business Days after the close of each
            calendar month, the Borrower shall deliver a Monthly Mine Report as
            at the close of such calendar month in form and substance
            satisfactory to the Agent and the Required Lenders;

       (m)  not more than ten (10) Business Days after the end of each calendar
            month the Borrower shall deliver:

            (i)    a statement showing in detail all credits to, debits from,
                   and balances standing to the credit of the Project Accounts
                   for such calendar month; and

            (ii)   a certificate, duly executed by the chief financial or
                   accounting Authorised Representative of the Borrower,
                   indicating the amounts, and the relevant payee, of all
                   Project Costs made for such calendar month, such payments to
                   be consistent with the Cash Flow Schedule (except to the
                   extent permitted by Clause 4.4(c));

       (n)  promptly after the end of each calendar year, the Borrower shall
            deliver a review of the operations of the Morila Project during such
            calendar year (such review to include any necessary updates to the
            Cash Flow Model, calculations indicating compliance with the
            provisions of Clause 9.1.19 up until the Final Maturity Date and a
            statement of Proven and Probable

                                      -73-

<PAGE>

            Reserves as at the end of such calendar year, in each case in form
            and substance satisfactory to the Independent Engineer);

       (o)  each Obligor will furnish copies of each filing and report or
            document made to or filed with, or received from, any Governmental
            Agency, and of each communication from such Obligor to its
            shareholders or creditors generally, in each case promptly upon the
            making, filing or receipt thereof which, in any such case, relate to
            or describe any material matter in connection with the business,
            operations, assets, financial condition or prospects of the relevant
            Obligor;

       (p)  the Borrower will, immediately upon becoming aware of any fact or
            circumstance giving rise to (or likely to give rise to) any cost
            overrun which might oblige any Completion Guarantor to make a
            contribution pursuant to Clause 3.2 of either Guarantee Agreement to
            which such Completion Guarantor is a party, give notice of such fact
            or circumstance. Such notice shall include information in reasonable
            detail as to the amount of such cost overrun, the circumstances
            giving rise thereto and any further possible cost overruns as may
            then be likely to occur;

       (q)  the Borrower will furnish copies of all material Instruments entered
            into by any Obligor in connection with the Project or the operation
            of the Mine in each case promptly upon having entered into the same
            (and of all material Instruments entered into by any other persons
            in connection with the Project promptly upon receipt of the same by
            the Borrower (and, in connection with any such Instrument, the
            Borrower undertakes to attempt to acquire the same as quickly as is
            reasonably possible after it becomes aware of such Instrument)) and
            the Borrower will immediately give notice of its intention to enter
            into any such Instrument or the intention of any other person to
            enter into any such Instrument (promptly upon the Borrower becoming
            aware of such intention);

       (r)  The Borrower will, promptly upon receipt thereof furnish copies of
            each Annual Operating Budget and Capital Budget (in each case as
            defined in the Operating Agreement) delivered to it pursuant to the
            Operating Agreement; and

       (s)  each Obligor will furnish such other information with respect to its
            financial condition, business, property, assets, revenues and
            operations as the Agent or any Lender (acting through the Agent) may
            from time to time reasonably request.

8.1.2  COMPLIANCE WITH LAWS

       Each Obligor will comply in all material respects with all Applicable
       Laws.

8.1.3  APPROVALS

       (a)  Each Obligor will obtain, maintain in full force and effect, and
            comply in all respects with, all Approvals (including those
            identified in Item 1

                                      -74-

<PAGE>

            ("APPROVALS") of the Disclosure Schedule) as may be required or
            advisable from time to time for such Obligor to:

            (i)    execute, deliver, perform and preserve its rights under any
                   of the Operative Documents executed or to be executed by it;

            (ii)   grant and perfect the liens granted or purported to be
                   granted and perfected by it pursuant to any Security
                   Agreement to which it is a party; and

            (iii)  in the case of the Borrower, own, lease, use or license the
                   Project Assets in which it holds any interest and operate the
                   Mine in accordance with sound mining and business practice;

       (b)  Without limiting clause (a), the Borrower will obtain all Approvals
            identified in Part B of Item 1 ("PENDING APPROVALS") of the
            Disclosure Schedule by the date set forth in the Disclosure Schedule
            opposite such Approval and, within five (5) Business Days of
            obtaining any such Approval deliver to the Agent certified copies of
            such Approval.

8.1.4  MAINTENANCE OF CORPORATE EXISTENCE

       Each Obligor will do and will cause to be done at all times all things
       necessary to maintain and preserve its corporate existence.

8.1.5  FOREIGN QUALIFICATION

       Each Obligor will do and cause to be done at all times all things
       necessary to be duly qualified to do business and be in good standing
       (where such concept is relevant) as a foreign corporation, in each
       jurisdiction where the nature of its business makes such qualification
       necessary.

8.1.6  PAYMENT OF TAXES, ETC

       Each Obligor will file all tax returns (including all property tax
       returns and other similar tax returns applicable to the Mine) and reports
       required by Applicable Law to have been filed by it. Each Obligor will
       pay and discharge, as the same may become due and payable, all taxes,
       assessments, fees and other governmental charges or levies against it or
       on any of its property, as well as claims of any kind or character
       (including claims for sums due for labour, material, supplies, personal
       property and services); PROVIDED, HOWEVER, that the foregoing shall not
       require any Obligor to pay or discharge any such tax, assessment, fee,
       charge, levy or claim:

       (a)  in respect of which the relevant invoice or demand for payment was
            issued not more than one hundred and twenty (120) days prior to the
            payment thereof (and in respect of which the relevant Obligor has,
            upon request, demonstrated to the Agent that it will pay prior to
            the end of such period); or

       (b)  so long as it shall be diligently contesting the validity or amount
            thereof in good faith by appropriate proceedings and shall have set
            aside on its books adequate reserves in accordance with GAAP with
            respect thereto.

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<PAGE>

8.1.7  INSURANCE

       (a)  The Borrower will maintain (or will cause to be maintained) with
            reputable insurance companies:

            (i)    insurance as required under this Agreement, as required
                   pursuant to Applicable Law and otherwise as contemplated by
                   the Insurance Summary; and

            (ii)   such other insurance (including business interruption and
                   delay in start up insurance) with respect to the properties
                   and business of the Borrower and the Morila Project against
                   such casualties and contingencies and of such types and in
                   such amounts as is customary in the case of similar
                   businesses to the Morila Project similarly situated and
                   financed on a limited recourse basis and the Borrower will,
                   upon request of the Agent, furnish to the Agent at reasonable
                   intervals (but not, as long as no Event of Default shall then
                   have occurred and be continuing, more than twice in any year)
                   a certificate setting forth the nature and extent of all
                   insurance maintained by or on behalf of the Borrower in
                   accordance with this Clause and confirming its adequacy and
                   sufficiency. The Agent may (if so required by the Lenders)
                   solicit the services of the Insurance Consultant to assess
                   the adequacy and sufficiency of the insurance coverage
                   required to be maintained hereunder and to evaluate the
                   contents of each certificate furnished pursuant to the
                   immediately preceding sentence. The Borrower will provide the
                   Agent with thirty (30) days prior written notice of any
                   proposed change of any insurance company providing insurance
                   coverage of the nature referred to in this Clause, and any
                   such change shall be consistent with the provisions of this
                   Agreement. The Borrower will from time to time provide the
                   Agent with such amendments to the Insurance Summary so as to
                   ensure that the same is complete and accurate at all times,
                   together with copies of all insurance policies as in effect
                   from time to time; PROVIDED, HOWEVER, that any such amendment
                   to the Insurance Summary shall be without prejudice to the
                   other requirements of this Clause and this Agreement with
                   respect to the required insurance coverage in connection with
                   the Morila Project; and PROVIDED, FURTHER, HOWEVER, that any
                   such amendment to the Insurance Summary shall require the
                   consent of the Agent (and, in the case of any such amendment
                   relating to the amount of any insurance coverage, any
                   deductible relating thereto and any exclusion to such
                   coverage, each of the Lenders). Without prejudice to the
                   foregoing, the Borrower shall ensure that all premiums
                   required to be paid in order to ensure that the policies
                   referred to in this clause are in full force and effect shall
                   be paid as and when the same shall become due and payable and
                   shall otherwise comply with each other term and condition of
                   such policies so as to ensure that such policies are, and
                   shall continue, in full force and effect.

                                      -76-

<PAGE>

       (b)  All of the insurance policies relating to the Morila Project (and,
            to the extent required by the Agent as set forth in clause (d), all
            policies of reinsurance issued in connection therewith) will, in
            each case, in accordance with standard practice in the mining
            industry having regard, INTER ALIA, to the limited recourse nature
            of the facility granted pursuant to this Agreement and to
            prevailing market practice in connection with comparable facilities
            for projects similar to the Morila Project:

            (i)    specify the Lender Parties as additional insureds under all
                   policies of liability insurance and as additional insureds
                   and the Agent as first loss payee under all policies of
                   property, business interruption and marine insurance, and
                   contain such endorsements in favour of the Agent as the Agent
                   shall reasonably require;

            (ii)   not be cancellable (or non-renewable or subject to a decrease
                   in the scope or amount of coverage (including by way of
                   increase in any deductible)) as against the Agent (including
                   for failure to pay premiums) or subject to material
                   alteration of any kind without (x) in the case of any such
                   action, thirty (30) days written notice of such action having
                   been given by the Borrower or the issuer of the relevant
                   policy to the Agent, and (y) in the case of any such material
                   alteration, the prior written consent of the Agent;

            (iii)  in the case of insurance covering loss or damage to any of
                   the Project Assets, contain a "LENDER LOSS PAYABLE" provision
                   for the benefit of the Agent on behalf of itself and the
                   Lenders (including that the policy shall not be invalidated
                   as against the Agent by reason of any action or failure to
                   act of the Borrower or any other person), provide for
                   (including containment of a "NON-VITIATION" provision) waiver
                   of any right of set-off, recoupment, subrogation,
                   counterclaim or any other deduction, by attachment or
                   otherwise, with respect to any liability of the beneficiary
                   of such policy, and shall provide that all amounts payable by
                   reason of loss or damage to any of the Project Assets shall
                   be payable to the Agent for replacement;

            (iv)   provide for payments of claims thereunder in Dollars (except
                   as set forth in the Insurance Summary); and

            (v)    otherwise (including with respect to the identity of the
                   brokers, insurers, re-insurers and/or indemnities involved in
                   connection with the solicitation, placement and issue of such
                   insurance policies) be in form and substance reasonably
                   satisfactory to the Agent.

            In connection with the foregoing, the Borrower and, to the extent
            that it is party to any such insurance policy, each Randgold
            Completion Guarantor shall (y) execute and deliver notices to the
            brokers, underwriters and insurance companies through or with whom
            any policy of insurance maintained in connection with the Morila
            Project have been effected in such form as the Agent may from time
            to time reasonably request, and (z) procure that any insurer
            effecting any reinsurance of any policy of

                                      -77-

<PAGE>

            insurance maintained in connection with the Morila Project execute
            and deliver such notices to the issuer of any such policy of
            reinsurance as the Agent may from time to time reasonably request.

            The Borrower shall not at any time do or omit to do anything whereby
            any insurance required to be effected under the Insurance Summary or
            pursuant to this Clause would, or would be likely to, be rendered
            void or voidable or suspended, impaired or defeated in whole or in
            part.

            The Borrower will make (or will cause to be made) full disclosure of
            all relevant issues and facts to the issuer of each insurance policy
            maintained in connection with the Morila Project such that no such
            issuer will be entitled to vitiate, cancel or otherwise refuse or
            decline to honour the terms of, or pay claims in respect of, any
            such insurance policy.

       (c)  The Borrower will cause proceeds, if any, of all insurances
            (excluding, for the avoidance of doubt, any Political Risk
            Insurance) maintained with respect to the Morila Project and the
            Mine to be applied as follows:

            (i)    all amounts received in respect of:

                   (x)  the partial or total nationalization, expropriation,
                        compulsory purchase or requisition of the Mine or the
                        Project Assets, or any interest therein;

                   (y)  any release, inhibition, modification, suspension or
                        extinguishment of any Mining Rights, or the imposition
                        of any restriction affecting the Mine or the Project
                        Assets or the grant of any Mining Right; and

                   (z)  the suspension or material modification of any Approval
                        required or advisable in connection with the Morila
                        Project or the operation of the Mine,

                   shall, in each such case, be deposited into the Operating
                   Account and applied as set forth in Clause 3.1(c);

            (ii)   all amounts received in respect of any liability insurance
                   may be paid directly to the person entitled thereto and after
                   an Enforcement Event all such amounts shall (except to the
                   extent that such amounts are, pursuant to the provisions of
                   the relevant policy of insurance, required to be paid to the
                   third party suffering the loss to which such amount relates)
                   be deposited into the Operating Account (it being understood
                   that, without prejudice to clause (b)(iv) or any other
                   provision of this Agreement, all proceeds denominated in CFA
                   shall be deposited into the Project Account (Mali));

            (iii)  all amounts received in respect of any business interruption
                   insurance or delay in start-up insurance shall be deposited
                   into the Operating Account; and

            (iv)   prior to an Enforcement Event, all proceeds from casualty or
                   property insurance received for any single repair,
                   replacement or

                                      -78-

<PAGE>

                     restoration costing less than U.S.$1,000,000 (or the
                     equivalent thereof in any other currency) shall be promptly
                     deposited into the Operating Account and may be applied to
                     the repair, replacement or restoration of the assets in
                     respect of which the relevant proceeds were received or for
                     reimbursement of the person which effected such repair,
                     replacement or restoration and after an Enforcement Event
                     all such proceeds shall be applied as the Lenders shall
                     determine. All such proceeds received for any such single
                     repair, etc. costing an amount which is equal to or in
                     excess of U.S.$1,000,000 (or the equivalent thereof in any
                     other currency) shall, with the consent of the Required
                     Lenders, be applied to the prompt payment of the cost of
                     the repair, replacement or restoration of such damaged or
                     destroyed asset. In the event that the consent of the
                     Required Lenders shall not be granted pursuant to the
                     provisions of the immediately preceding sentence, then all
                     such proceeds shall be applied to make a mandatory
                     prepayment of the Principal Amount of the Loans pursuant to
                     Clause 3.1(c).

         (d)  If the Agent shall so require, at the cost and expense of the
              Borrower, the Borrower will procure that:

              (i)    any policy of insurance issued in connection with the
                     Morila Project is re-insured and kept re-insured with one
                     or more reputable international re-insurance companies or
                     underwriters and through such brokers as the Agent shall,
                     acting in its reasonable discretion, approve and to the
                     reasonable satisfaction of the Agent as to the form and
                     content thereof;

              (ii)   any claim upon such policies of re-insurance shall be paid
                     without deduction or set-off and any such claim under a
                     policy of re-insurance with respect to a claim under the
                     policies of insurance relating to the Morila Project shall
                     be paid in accordance with clause (c); and

              (iii)  all such instruments of re-insurance shall be deposited
                     with brokers approved by the Agent and that copies thereof,
                     together with such undertakings as the Agent may reasonably
                     require, are furnished to the Agent.

         (e)  For the avoidance of doubt neither any Lender Party nor the
              Insurance Consultant shall be under any obligation to the
              underwriters, insurance companies, or brokers by or through whom
              any policy of insurance referred to in this Clause shall be
              effected.

8.1.8    BOOKS AND RECORDS

         Each Obligor will keep financial records and statements reflecting all
         of its business affairs and transactions in accordance with GAAP. On
         not less than three (3) days prior written notice where no Default has
         occurred and on not less than twenty four (24) hours prior notice where
         a Default has occurred, in each case during normal business hours each
         Obligor will permit the Independent Engineer,

                                      -79-

<PAGE>

         the Insurance Consultant, the Lender Parties or any of their respective
         representatives to inspect any and all of its properties and operations
         (including, in the case of the Borrower, the Mine), to visit all of its
         offices or any other location where relevant personnel or records are
         located, to discuss its financial matters with its officers, its banks
         and its independent chartered accountants and certified public
         accountants, as the case may be, (and hereby authorises such
         independent chartered accountants or certified public accountants, as
         the case may be, to discuss its financial matters with any of the
         foregoing persons or its representatives whether or not any
         representative of the relevant Obligor is present), in each case
         subject to such safety and organisational requirements as the Borrower
         may reasonably impose, and to examine (and photocopy extracts from) any
         of its books or other corporate records or any Instrument, document or
         correspondence relating to any of the Project Documents. Without
         limiting the generality of the foregoing, each Obligor shall provide
         all relevant and necessary assistance to the Independent Engineer and
         the Insurance Consultant in connection with the performance of their
         respective duties contemplated hereby (including the preparation of
         each Semi-Annual Mine Report and each other report prepared by the
         Independent Engineer and the Insurance Consultant). The Borrower shall
         pay any reasonable fees of such chartered accountant or certified
         public accountant and the Independent Engineer and the Insurance
         Consultant and out-of-pocket expenses of the Lender Parties incurred in
         connection with the exercise of their rights pursuant to this Clause.
         It is expressly understood that none of the Independent Engineer, the
         Insurance Consultant or any Lender Party assumes any obligation to any
         Obligor or any other party in respect of the operation, development,
         exploration and production of the Mine in a manner so as to ensure
         compliance with the projections set forth in the Development Plan, the
         Cash Flow Schedule or otherwise.

8.1.9    MORILA PROJECT COMPLETION AND MANAGEMENT

         Each Obligor will ensure that the Morila Project is consummated in
         accordance with the Development Plan, Applicable Laws, the Project
         Documents and sound mining and business practice, and will ensure that
         the Mine is operated, maintained and developed and that Project Output
         is produced and processed, all substantially in accordance with the
         Development Plan, Applicable Laws and sound mining and business
         practice (including, so as to ensure that the Mechanical Completion
         Date, the Economic Completion Date and the Release Date occur on or
         prior to 31 December, 2001).

8.1.10   REQUIRED HEDGING AGREEMENTS

         At all times on and after the Effective Date, the Borrower shall
         provide evidence to the Agent to the effect that it has directly
         entered into (or shall have been assigned the benefit thereof from RRL,
         Morila Holdings or AngloGold or any subsidiary of AngloGold), and the
         Agent (for the rateable benefit of the Lender Parties) shall have been
         granted a first priority perfected lien in respect of the Borrower's
         rights under, Committed Hedging Agreements reasonably acceptable to the
         Agent or put options from the Borrower or other similar uncommitted
         transactions with respect to the sale of Gold (together with such
         Committed Hedging Agreements, collectively, the "REQUIRED HEDGING
         AGREEMENTS") which are in effect with counterparties (the "REQUIRED
         HEDGING COUNTERPARTIES") satisfactory to the Agent such that the
         proceeds thereof (both as to the amount and to the timing) are

                                      -80-

<PAGE>

         sufficient to ensure that, as at all Calculation Dates. scheduled to
         occur after such time, no Default would have occurred pursuant to the
         provisions of Clauses 9.1.19(a), 9.1.19(b), or 9.1.19(c). Furthermore,
         each Obligor shall ensure that all hedging undertaken in connection
         with the Morila Project complies with, and is consistent with, the
         terms and conditions of the Hedging Policy. RRL shall ensure that any
         other hedging undertaken by it shall be made in the ordinary course of
         its business. In addition to any obligation contained in the
         immediately preceding sentence, each Obligor shall ensure that the
         hedging transactions implemented pursuant to each of:

         (a)  the ISDA Master Agreement, dated as of September 1, 1999, between
              RRL and Standard Bank London Limited;

         (b)  the ISDA Master Agreement, dated March 9, 2000, between RRL and
              N M Rothschild & Sons Limited; and

         (c)  the ISDA Master Agreement, dated February 18, 2000, between RRL
              and Societe Generale,

         (as the same may, in a manner which is consistent with the Hedging
         Policy, be amended, modified, supplemented or replaced from time to
         time in order to replace RRL with Morila Holdings as the hedging
         counterparty or to replace any provider of hedging with an affiliate
         thereof) shall, in each such case, at all times remain in full force
         and effect without amendment, modification or restructuring.

8.1.11   USE OF PROCEEDS

         The Borrower shall apply the proceeds of the Loans in accordance with
         the second recital, and otherwise strictly in accordance with this
         Agreement.

8.1.12   PROVISION OF STAFF

         Each of the Obligors shall ensure (to the satisfaction of the Agent)
         that there are sufficient competent technical and management employees
         engaged in connection with the Mine and the Morila Project with a view
         to enabling (a) the occurrence of the Mechanical Completion Date, the
         Economic Completion Date and the Release Date on or prior to 31
         December, 2001, and (b) the operation, development and maintenance of
         the Mine substantially in accordance with the Development Plan.

8.1.13   ENVIRONMENTAL COVENANTS

         (a)  The Borrower will, and will use all reasonable efforts to ensure
              that each other Project Party will:

             (i)     use and operate the Mine, the Project Assets and all of
                     the facilities and properties related thereto in material
                     compliance with, keep all Approvals relating to
                     environmental matters in effect and remain in material
                     compliance with, and handle all Hazardous Materials in
                     material compliance with the Environmental Review Standards
                     and with material applicable Environmental Laws;

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<PAGE>

              (ii)   immediately notify the Agent and provide copies upon
                     receipt of all material written claims, complaints or
                     notices relating to the condition of the facilities and
                     properties related to the Mine and the Project Assets or
                     material compliance with the Environmental Review Standards
                     or Environmental Laws relating to the Morila Project, and
                     shall use reasonable efforts to cure any non-compliance
                     which is the subject matter of any action and proceeding
                     relating to such Environmental Review Standards or
                     Environmental Laws, unless the Borrower intends to contest
                     such action or proceeding and, in connection with such
                     contest, the Borrower has immediately notified the Agent of
                     its intention to do so and the Borrower believes in good
                     faith that there is a reasonable prospect of succeeding
                     with such action or proceeding;

              (iii)  provide such information and certifications which the Agent
                     may reasonably request from time to time to evidence
                     compliance with this clause.

         (b)  Each Randgold Completion Guarantor will use reasonable efforts to
              seek to (and will use reasonable efforts to seek to (except in the
              case of clause (b)(i)) ensure that each of its subsidiaries will
              seek to):

              (i)    ensure that the Borrower complies with its obligations set
                     forth in clause (a);

              (ii)   except where failure to comply with the provisions of this
                     clause would not be reasonably likely to result in a
                     Materially Adverse Effect, use and operate all of its
                     facilities and properties in compliance with material
                     Environmental Laws and remain in compliance therewith, and
                     handle all Hazardous Materials in material compliance with
                     all applicable Environmental Laws; and

              (iii)  provide such information and certifications which the Agent
                     may reasonably request from time to time to evidence
                     compliance with this clause.

8.1.14   MAINTENANCE OF PROJECT ASSETS

         The Borrower will maintain, preserve, protect and keep:

         (a)  all of its ownership, lease, use, licence and other interests in
              the Project Assets (including all Mining Rights) as are necessary
              or advisable for it to be able to operate the Mine substantially
              in accordance with sound mining and business practice and in a
              manner such that the requirements of, and projections contained
              in, the Development Plan can be achieved; and

         (b)  all of the Project Assets owned by it in good repair, working
              order, and condition, and make necessary and proper repairs,
              renewals, and replacements so that the business carried on in
              connection therewith may be properly conducted at all times,
              unless the continued maintenance of any of such Project Assets is
              no longer necessary or economically desirable for the

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              operation of the Mine, such operation to be substantially in
              accordance with sound mining and business practice.

8.1.15   PARI PASSU

         Each Obligor will ensure that its payment Obligations under this
         Agreement and each other Loan Document to which it is a party rank at
         least PARI PASSU in right of payment with all of such Obligor's present
         and future other unsecured indebtedness, other than any such
         indebtedness which is preferred by mandatory provisions of Applicable
         Law.

8.1.16   AFTER-ACQUIRED COLLATERAL

         Upon the acquisition or production of any Project Assets (including the
         entering into of any Project Document) of a type over which any lien
         has been granted pursuant to any Security Agreement but in respect of
         which no lien has effectively been granted pursuant to any such
         Security Agreement and which constitute assets having an aggregate fair
         market value of U.S.$100,000 (or the equivalent thereof in any other
         currency), the relevant Obligor shall, to the extent permitted by
         Applicable Law:

         (a)  enter into Instruments similar to the relevant Security
              Agreement;

         (b)  simultaneously therewith, effect all relevant notarisations and
              registrations or obtain the acknowledgement and agreement of all
              relevant counterparties, as the case may be; and

         (c)  take all other actions necessary or advisable in order to:

              (i)    create in favour of the Lender Parties a valid and
                     perfected first priority lien (except for (x) liens
                     resulting from mandatory provisions of Applicable Law and
                     (y) liens specifically permitted to be incurred by this
                     Agreement or any Security Agreement) over all of such newly
                     acquired Project Assets; and

              (ii)   evidence the creation of such lien (including opinions
                     of legal advisers).

         Without prejudice to the generality of the foregoing, the Borrower will
         ensure that, promptly upon the effectiveness of any Project Document of
         the nature described in clause (c) of the definition thereof, the
         Lender Parties shall be granted a valid and perfected first priority
         lien (except as aforesaid) over the Borrower's rights thereunder as
         security for the Obligations.

8.1.17   ACCURACY OF INFORMATION

         All factual information hereafter furnished by or on behalf of any
         Obligor in writing to any Lender Party for the purposes of or in
         connection with this Agreement or any transaction contemplated hereby
         will be true and accurate in all material respects on the date as of
         which such information is dated or certified and such information shall
         not be incomplete by omitting to state any material fact

                                      -83-

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         known to the relevant Obligor necessary to make such information not
         misleading in any material respect.

8.1.18   PROJECT DOCUMENTS

         Each Obligor undertakes to ensure that, except to the extent expressly
         permitted pursuant to this Agreement or any other Loan Document:

         (a)  each Obligor and, to the extent reasonably within any Obligor's
              control any other relevant Project Party, observes their
              respective obligations under all Project Documents in all material
              respects;

         (b)  no Obligor abandons, settles, compromises or discontinues or
              becomes non-suited in respect of proceedings against any party in
              connection with a Project Document;

         (c)  each Obligor takes the action that a prudent, diligent and
              reasonable person would take to cause each party to a Project
              Document to observe its obligations in connection with that
              Project Document, and if that party defaults in the performance of
              those obligations to take the action that a prudent, diligent and
              reasonable person would take to enforce its resulting rights
              thereunder, unless the Agent, acting in its reasonable discretion,
              agrees otherwise; and

         (d)  Each Obligor exercises any discretionary or similar power which
              might be granted to it pursuant to any Project Document in a
              manner which is consistent with the obligations of such Obligor
              contained in the Loan Documents to which it is a party (including
              those obligations set forth in Clause 8.1.19).

8.1.19   SALE OF PRODUCTION

         Subject to the terms of any relevant Committed Hedging Agreements in
         force from time to time and subject to the provisions of the proviso to
         Clause 8.1.10, the Borrower will ensure that all Project Output is sold
         on arm's length terms for a purchase price denominated in Dollars, and
         the Borrower will ensure that the proceeds of any purchase price of all
         Project Output are, subject to the terms of this Agreement, promptly
         deposited directly into the Operating Account.

8.1.20   POLITICAL RISK INSURANCE

         (a)  The Borrower will, on demand, reimburse each Lender in respect of
              premiums and any other amounts (including any costs and expenses
              of the provider of any Political Risk Insurance) payable in
              connection with any policy of Political Risk Insurance implemented
              pursuant to this Agreement (including any such premium or other
              amounts payable on or after the date of prepayment of the Loans or
              on or after the date of termination of this Agreement).

         (b)  Each Obligor hereby acknowledges and agrees that each Lender may
              furnish copies of all Instruments (including the Operative
              Documents),

                                      -84-

<PAGE>

              documents, notices and other information furnished to and received
              by such Lender pursuant to this Agreement or any other Loan
              Document to the provider of the Political Risk Insurance taken out
              by such Lender against receipt from such provider of a
              confidentiality undertaking reasonably acceptable to the Borrower.

         (c)  Each Obligor will (and each Randgold Completion Guarantor will
              ensure that the Borrower and each of its affiliates will) render
              all necessary assistance to each Lender in connection with the
              maintenance of any Political Risk Insurance (and full coverage
              thereunder) and the collection of any claim thereunder.

         (d)  Each Obligor shall (and each Randgold Completion Guarantor will
              ensure that the Borrower and each of its affiliates shall) act in
              a manner so as to ensure that an exclusion from liability in
              respect of any claim of any Lender under any policy of Political
              Risk Insurance does not arise as a result of any action or any
              inaction of any Obligor or any affiliate of either thereof.
              Without limiting the generality of the foregoing, no Obligor will
              (and each Randgold Completion Guarantor will ensure that neither
              the Borrower nor any of its affiliates will):

              (i)    provoke or instigate any loss covered by such policy;

              (ii)   without the prior written consent of the relevant Lender,
                     accept compensation from Mali or any Governmental Agency
                     thereof in respect of any loss covered by such policy; or

              (iii)  in the case of the Borrower only, employ its assets for any
                     purpose not associated with the Morila Project.

         (e)  Each Obligor will ensure at all times that neither Mali nor any
              Governmental Agency thereof has any ownership or other interest in
              any Project Assets (excluding, however, any royalty payment to
              Mali disclosed in Item 9 ("ROYALTY AGREEMENTS") of the Disclosure
              Schedule and the ownership by the Government of Mali of twenty
              (20%) of the issued share capital of the Borrower).

8.2      CERTAIN NEGATIVE COVENANTS

         Each Obligor agrees with each Lender Party that, until all Commitments
         have terminated and all Obligations have been paid and performed in
         full, each Obligor will perform its respective obligations set forth in
         this Clause; PROVIDED, HOWEVER, that (except in the case of Clause
         8.2.12, Clause 8.2.13, Clause 8.2.14 (excluding the provisions of the
         second and third lines thereof appearing in parentheses) and Clause
         8.2.15) no Randgold Completion Guarantor will be under any further
         obligation under this Clause 8.2 (without prejudice to any liability
         arising as a result of any breach on or prior to the Release Date of
         any undertaking of any Randgold Completion Guarantor contained in this
         Clause) at any time following the Release Date.

8.2.1    BUSINESS ACTIVITIES; PLACE OF BUSINESS; ORGANIC DOCUMENTS; FISCAL YEAR

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<PAGE>

         (a)  The Borrower will not (except as expressly permitted pursuant to
              any Loan Document):

              (i)    engage in any business activity other than the consummation
                     of the Morila Project and the operation of the Mine and any
                     activity incidental thereto;

              (ii)   maintain any place of business in the United Kingdom or
                     elsewhere (other than the location of the Mine or Bamako,
                     Mali) without first taking (to the satisfaction of the
                     Agent) all actions necessary to protect the lien granted
                     pursuant to the relevant Security Agreements;

              (iii)  except as may be required by Applicable Law in connection
                     with any increase in the capital of the Borrower, amend its
                     Organic Documents or change its corporate name; or

              (iv)   change its Fiscal Year.

         (b)  No Randgold Completion Guarantor will engage in any business
              activity other than:

              (i)    in the case of RRL, as a holding company for the ownership,
                     directly or indirectly, of all or a portion of the issued
                     and outstanding share capital of the Borrower and other
                     subsidiaries engaged in exploration, development, mining
                     and related activities in connection with the mining of
                     gold; and

              (ii)   in the case of Morila Holdings, as a holding company for
                     the ownership, directly, of the issued and outstanding
                     share capital of the Borrower.

8.2.2    INDEBTEDNESS

         No Obligor will create, incur, assume, or suffer to exist or otherwise
         become or be liable in respect of any indebtedness other than:

         (a)  indebtedness in respect of the Loans and other Obligations;

         (b)  in the case of each Obligor indebtedness in respect of the
              Required Hedging Agreements in accordance with Clause 8.1.10, or,
              without prejudice to the proviso to this clause, other Hedging
              Obligations incurred in the ordinary course of business; PROVIDED,
              HOWEVER, that each Obligor shall only incur Hedging Obligations
              with Lenders as counterparties, pursuant to documentation and on
              terms and conditions satisfactory to the Agent and pursuant to the
              terms and conditions which are consistent with the Hedging Policy
              (the "HEDGING POLICY");

         (c)  indebtedness in respect of the other Operative Documents;

         (d)  in the case of the Borrower, and at any date:

                                      -86-

<PAGE>

              (i)    unsecured indebtedness outstanding at such date and
                     incurred in the ordinary course of business in connection
                     with Project Costs (by way of open accounts extended by
                     suppliers on normal trade terms in connection with
                     purchases of goods and services (and excluding, for the
                     avoidance of doubt, financial indebtedness); and

              (ii)   indebtedness not in excess of U.S.$2,000,000 (or the
                     equivalent thereof in any other currency) in respect of the
                     Borrower at any one time outstanding incurred to suppliers
                     of equipment and other personal property constituting
                     Project Capital Costs (other than pursuant to the
                     Construction Contract, the Mining Contract or the Power
                     Contract) in respect of the deferred purchase price of such
                     equipment or incurred by way of Capital Leases;

         (e)  in the case of each of the Borrower and (at any time on or prior
              to the AngloGold Acquisition Date) RRL, Approved Subordinated
              Indebtedness;

         (f)  in the case of RRL, indebtedness in an aggregate principal amount
              not in excess of the CFA equivalent of U.S $6,250,000 incurred by
              way of overdraft facilities extended to RRL by Banque de
              Developpement du Mali;

         (g)  in the case of RRL, indebtedness incurred in connection with its
              guarantee or other financial or other support of the IFC Syama
              Project Financing in each case as in effect on the Effective Date;

         (h)  indebtedness in respect of taxes, assessments or governmental
              charges, and indebtedness in respect of claims for employment,
              materials or supplies to the extent that payment thereof shall not
              at the time be required to be made in accordance with the
              provisions of Clause 8.1.6;

         (i)  indebtedness in respect of judgments or awards, the enforcement of
              which has not been stayed (by reason of a pending appeal or
              otherwise), for a period of more than ten (10) days, which do not,
              in the aggregate, exceed U.S.$1,000,000 (or the equivalent thereof
              in any other currency); and

         (j)  in the case of the Borrower, indebtedness in an aggregate
              principal amount not in excess of U.S.$1,600,000 outstanding to
              the Government of Mali.

8.2.3    LIENS

         No Obligor will create, incur, assume or suffer to exist any lien upon
         any of its properties, revenues or assets, whether now owned or
         hereafter acquired, except:

         (a)  liens in favour of the Agent (for the rateable benefit of the
              Lender Parties) or in favour of the Lender Parties granted
              pursuant to any Loan Document;

         (b)  liens for taxes, assessments or other governmental charges or
              levies not at the time delinquent or thereafter payable without
              penalty or being contested in good faith by appropriate
              proceedings and for which adequate reserves in accordance with
              GAAP shall have been set aside on its books;

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<PAGE>

         (c)  in the case of the Borrower, liens of carriers, warehousemen,
              mechanics, materialmen, suppliers and landlords incurred in the
              ordinary course of business for sums not overdue or being
              contested in good faith by appropriate proceedings and for which
              adequate reserves in accordance with GAAP shall have been set
              aside on its books;

         (d)  in the case of the Borrower, liens incurred in the ordinary course
              of business in connection with unemployment insurance or other
              forms of governmental insurance or benefits, or to secure
              performance of tenders, statutory obligations, leases and
              contracts (other than for financial indebtedness) entered into in
              the ordinary course of business or to secure obligations on surety
              or appeal bonds;

         (e)  judgment liens in existence less than ten (10) days after the
              entry thereof or with respect to which execution has been stayed
              or the payment of which is covered in full (subject to a customary
              deductible) by insurance maintained with responsible insurance
              companies; and

         (f)  in the case of the Borrower, liens securing indebtedness permitted
              to be incurred and outstanding pursuant to Clause 8.2.2(d)(ii);
              PROVIDED, HOWEVER, that any such lien shall attach only to the
              asset in respect of which such indebtedness is incurred.

         For the purposes of this Clause the obligations secured by any lien
         created or incurred in the ordinary course of business (other than any
         liens of the nature referred to in clause (a) or (b)) may not exceed
         U.S.$500,000 in the aggregate at any one time outstanding.

8.2.4    [INTENTIONALLY LEFT BLANK].

8.2.5    CAPITAL EXPENDITURES

         The Borrower will not make or commit to make any costs in respect of
         Capital Expenditures other than such costs which are identified in the
         Cash Flow Schedule and shall not make or commit to make any such costs
         if, at the time, or as a consequence of, incurring any such item of
         expenditure any Default shall have occurred and be continuing;
         PROVIDED, HOWEVER, that, if any such Default shall have occurred and be
         continuing, the Borrower may make Capital Expenditures constituting
         Required Completion Expenditures and Required Maintenance Expenditures.

8.2.6    INVESTMENTS

         The Borrower will not acquire all or substantially all of the assets of
         any other person and will not make, incur, assume or suffer to exist
         any Investment in any other person, except Cash Equivalent Investments
         permitted pursuant to Clause 4 to be made with balances standing to the
         credit of any Project Account.

8.2.7    RESTRICTED PAYMENTS, ETC

         The Borrower will not:

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<PAGE>

         (a)  declare, pay or make any distribution (in cash, property or
              obligations) on any shares of any class of capital stock (now or
              hereafter outstanding) of the Borrower or on any ownership
              interest of the Borrower or on any warrants, options or other
              rights with respect to any shares of any class of capital stock
              of, or other ownership interest (now or hereafter outstanding) in,
              the Borrower or apply any of its funds, property or assets to the
              purchase, redemption or other retirement of any shares of any
              class of capital stock of, or other ownership interest (now or
              hereafter outstanding) in, the Borrower, or warrants, options or
              other rights with respect to any shares of any class of capital
              stock of, or other ownership interest (now or hereafter
              outstanding) in, the Borrower;

         (b)  repay, redeem, purchase or otherwise defease or discharge any
              indebtedness owing to, or make any other payment to, any affiliate
              (including all Approved Subordinated Indebtedness);

         (c)  make any deposit for any of the foregoing purposes or otherwise
              discharge any indebtedness incurred by any affiliate; or

         (d)  pay any management or similar fee to any Randgold Completion
              Guarantor, AngloGold or any of their respective affiliates;

         PROVIDED, HOWEVER, that (A) the Borrower may make any payment or take
         any other action for any of the foregoing purposes if each of the
         following conditions are satisfied:

              (i)    no Default shall have occurred and be continuing or would
                     result from any such payment or other action; PROVIDED,
                     HOWEVER, that for purposes of this clause (i) only, a
                     Default shall be deemed to have occurred pursuant to Clause
                     9.1.19(b) or 9.1.19(c) if the Loan Life Ratio or Project
                     Life Ratio (calculated as set forth therein) shall be less
                     than or equal to one hundred and fifty percent (150%) or
                     one hundred and eighty percent (180%), respectively;

              (ii)   (w) any such payment or other action may be made or taken
                     only during each consecutive ten (10) Business Day period
                     following each Cash Sweep Calculation Date;

                     (x)   after giving effect to all payments required to be
                           made on or prior to such Cash Sweep Calculation Date
                           (including any such payments required to be made on
                           such Cash Sweep Calculation Date pursuant to Clause
                           3.1(d)), there are sufficient funds standing to the
                           credit of the Operating Account to permit such
                           payment to be made in accordance with the provisions
                           of Clause 4.1(b);

                     (y)   the aggregate of all such payments made during any
                           period referred to in clause (ii)(y) shall not exceed
                           the excess of (A) Excess Cash Flow for the Cash Sweep
                           Calculation Period in connection with the relevant
                           Cash Sweep Calculation Date, less (B) an amount which
                           the Required Lenders and the Borrower shall agree is,
                           after taking into account the likely Actual Cash

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<PAGE>

                           Flow for any period following such Cash Sweep
                           Calculation Date, reasonably likely to be required to
                           fund Project Costs during such period; and

                     (z)   prior to any such payment being made each of the
                           Lenders shall have received a completed Excess Cash
                           Flow Calculation Certificate in respect of the Cash
                           Sweep Calculation Period most recently ended and
                           indicating to the reasonable satisfaction of the
                           Lenders, that the amount of Excess Cash Flow for such
                           Cash Sweep Calculation Period is sufficient to enable
                           such payment to be made in compliance with the
                           foregoing provisions of this Clause;

              (iii)  in the case of any repayment, etc. of Approved Subordinated
                     Indebtedness pursuant to clause (b), such repayment etc.
                     shall be permitted to be made pursuant to the Subordination
                     Agreement; and

              (iv)   the Release Date shall have occurred; and

         (B) the Borrower may, during the period commencing on the Supplemental
         Agreement Effective Date and ending on the date which is five (5)
         Business Days thereafter, make a repayment of Approved Subordinated
         Indebtedness to RRL and AngloGold (BVI) in an aggregate principal
         amount of not in excess of the sum of (i) U.S.$12,000,000 and (ii) the
         Supplemental Agreement Drawdown;

         and PROVIDED, FURTHER, HOWEVER, that notwithstanding the provisions of
         this Clause, and at any time when no Default shall then have occurred
         and be continuing, the Borrower may (but excluding, however, any
         reimbursement of any amount contributed by any Completion Guarantor to
         the Borrower pursuant to Clause 3.1(c) of the Randgold Guarantee
         Agreement or Clause 3.2 of either Guarantee Agreement) reimburse each
         Completion Guarantor in respect of any Project Costs actually paid for
         by such Completion Guarantor at any time after the initial Borrowing
         Date (and, in connection therewith and for all purposes of this
         Agreement (including Clause 4) such reimbursement shall constitute a
         Project Cost payable by the Borrower as if the relevant Project Cost
         paid by the relevant Completion Guarantor had been paid by the
         Borrower). The Borrower will ensure that any payment made by it to the
         Operator or any other person by way of management or similar fee shall
         not exceed the amounts set forth in the Operating Agreement and shall
         be paid pursuant to the terms and conditions of the Operating Agreement
         and the Borrower agrees that no such payment to the Operator or any
         other such person shall be made at any time when an Enforcement Event
         has occurred and is continuing.

8.2.8    TAKE OR PAY CONTRACTS

         Except as set forth in Item 8 ("TAKE OR PAY CONTRACTS") of the
         Disclosure Schedule, no Obligor will enter into or be a party to any
         arrangement for the purchase of materials, supplies, other property or
         services if such arrangement by its express terms requires that payment
         be made by such Obligor regardless of whether or not such materials,
         supplies, other property or services are delivered or furnished to it.
         For the avoidance of doubt, nothing in this Clause shall prohibit the
         Borrower from entering into any Required Hedging Agreement.

                                      -90-

<PAGE>

8.2.9    MERGERS, ETC

         No Obligor will enter into any amalgamation, demerger, merger or
         reconstruction.

8.2.10   ASSET DISPOSITIONS, ETC

         No Obligor will sell, transfer, lease or otherwise dispose of any of,
         or grant options, warrants or other rights with respect to, any of its
         assets (including accounts receivable) to any person, unless:

         (a)  such disposition is of Project Output made in the ordinary course
              of business under the terms of the Refining Agreement or otherwise
              pursuant to arrangements with refineries which are satisfactory to
              the Lender Parties acting in their reasonable discretion;

         (b)  such disposition is of obsolete assets which are no longer used or
              required by the relevant Obligor or of assets which are to be
              replaced; or

         (c)  the net book value of all assets disposed of by all Obligors and
              the Borrower (excluding, however, assets disposed of pursuant to
              clause (a) or (b)) in the same Fiscal Year does not exceed
              U.S.$5,000,000 and U.S.$1,000,000 (or the equivalent thereof in
              any other currency), respectively, in the aggregate and fair value
              in cash or other assets is received therefor.

         All cash proceeds received by the Borrower in connection with any
         transaction permitted to be entered into pursuant to this Clause shall
         be deposited into the Operating Account.

8.2.11   TRANSACTIONS WITH AFFILIATES

         No Obligor will enter into, or cause, suffer or permit to exist:

         (a)  any arrangement or contract pursuant to which any indebtedness is
              extended by such Obligor to any of its affiliates as obligor;

         (b)  any arrangement or contract with any of its affiliates of a nature
              customarily entered into by persons which are affiliates of each
              other (including management or similar contracts or arrangements
              relating to the allocation of revenues, taxes and expenses or
              otherwise) requiring any payments to be made by any Obligor to any
              affiliate unless such arrangement is fair and equitable to such
              Obligor; or

         (c)  any other transaction, arrangement or contract with any of its
              other affiliates which would not be entered into by a prudent
              person in the position of such Obligor with, or which is on terms
              which are less favourable to such Obligor than are obtainable
              from, any person which is not one of its affiliates;

         PROVIDED, HOWEVER, that nothing in this Clause shall prevent, or be
         deemed to prevent:

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<PAGE>

              (i)    the payment of management fees by the Borrower to the
                     Operator to the extent that such management fees are
                     permitted to be paid pursuant to Clause 8.2.7;

              (ii)   the incurrence and repayment by the Borrower of Approved
                     Subordinated Indebtedness permitted to be incurred and/or
                     repaid pursuant to the terms of this Agreement; or

              (iii)  the reimbursement by the Borrower to any Completion
                     Guarantor of any Project Costs permitted to be made
                     pursuant to the second proviso to Clause 8.2.7.

8.2.12   RESTRICTIVE AGREEMENTS, ETC

         No Obligor will enter into any agreement (excluding this Agreement and
         the Loan Documents) prohibiting the creation or assumption of any lien
         upon its properties, revenues or assets, whether now owned or hereafter
         acquired, or the ability of any Obligor to amend or otherwise modify
         this Agreement or any other Operative Document.

8.2.13   INCONSISTENT AGREEMENTS

         No Obligor will enter into any agreement containing any provision which
         would be violated or breached by the making of the Loans hereunder or
         by the performance by such Obligor of its obligations hereunder or
         under any Loan Document.

8.2.14   PROJECT DOCUMENTS

         Without prejudice to Clause 8.2.15, no Obligor will (and each Randgold
         Completion Guarantor will ensure that none of its affiliates will):

         (a)  amend, modify or waive any material provision of any Project
              Document to which it is a party; or

         (b)  terminate (other than in accordance with its terms (excluding,
              however, as a result of the breach of any obligation by any party
              thereto)) or replace, any Project Document to which it is a party.

         For the avoidance of doubt those provisions of the Operating Agreement
         relating to the calculation and payment of amounts thereunder by the
         Borrower to the Operator shall each be deemed to be material provisions
         of the Operating Agreement.

8.2.15   ACTIONS AND PERFORMANCE UNDER PROJECT DOCUMENTS

         No Obligor will take or refrain from taking any action under any of the
         Project Documents which would have a material adverse effect on:

         (a)  the ability of the Borrower to consummate the Morila Project and
              operate the Mine in accordance with the Development Plan and
              achieve the Mechanical Completion Date, the Economic Completion
              Date and the Release Date by no later than 31 December, 2001;

                                      -92-

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         (b)  any collateral subject to any Security Agreement and the
              perfection and priority of the liens granted or purported to be
              granted therein; or

         (c)  the ability of such Obligor to pay and perform its Obligations.

         Each Obligor will perform each of its material obligations contained
         in each Project Document to which it is a party in the manner
         contemplated by such Project Document.

8.2.16   BANK ACCOUNTS

         The Borrower shall not open any bank account or maintain any similar
         deposit arrangement or maintain any balance in any bank account or in
         respect of such arrangement other than the Project Accounts except with
         the prior written consent of the Agent (such consent not to be
         unreasonably withheld but to be deemed to have been reasonably withheld
         if any such account shall not be subject to a first priority perfected
         lien in favour of the Lender Parties).

8.2.17   ROYALTY AGREEMENTS

         The Borrower will not enter into any agreement relating to the granting
         of royalties or net profits interests in connection with the Morila
         Project other than as set forth in the royalty agreements listed in
         Item 9 ("ROYALTY AGREEMENTS") of the Disclosure Schedule.

9.       EVENTS OF DEFAULT

9.1      EVENTS OF DEFAULT

         The term "EVENT OF DEFAULT" shall mean any of the events set forth in
         this Clause.

9.1.1    NON-PAYMENT OF OBLIGATIONS

         (a)  The Borrower:

              (i)    shall default in the payment, repayment or prepayment when
                     due of any Principal Amount of or interest on any Loan
                     (and, in the case of any default in respect of interest,
                     such default shall continue unremedied for a period of
                     three (3) Business Days); or

              (ii)   shall default in the payment when due of any other
                     Obligation (and such default shall continue unremedied for
                     a period of five (5) Business Days); or

         (b)  AngloGold or AngloGold (BVI) shall default in the payment when due
              of any Obligation and such default shall continue unremedied for a
              period of five (5) Business Days.

9.1.2    NON-PERFORMANCE OF CERTAIN COVENANTS

         Any Obligor and/or, as the case may be, AngloGold and/or AngloGold
         (BVI) shall default in the due performance and observance of any of its
         obligations under:

                                      -93-

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         (a)  Clause 8.1.4, 8.1.11, 8.1.15 or 8.2; or

         (b)  Clauses 2 to 7 of any Subordination Agreement; or

         (c)  Clause 2 or 3 of either Guarantee Agreement.

9.1.3    NON-PERFORMANCE OF OTHER OBLIGATIONS

         Any Obligor and/or, as the case may be, AngloGold and/or AngloGold
         (BVI) shall default in the due performance or observance of any term,
         condition, covenant or agreement contained herein or in any other Loan
         Document executed by it (other than a default referred to in Clause
         9.1.1 or 9.1.2), and, if capable of cure or remedy, such default shall
         continue unremedied for a period of thirty (30) days.

9.1.4    BREACH OF REPRESENTATION OR WARRANTY

         Any representation or warranty of any Obligor and/or, as the case may
         be, AngloGold and/or AngloGold (BVI) made hereunder or under any other
         Loan Document executed by it or in any other document delivered by or
         on behalf of such Obligor and/or, as the case may be, AngloGold and/or
         AngloGold (BVI) to any Lender Party for the purposes of or in
         connection with this Agreement or any such Loan Document is or shall be
         incorrect in any material respect when made.

9.1.5    DEFAULT ON OTHER INDEBTEDNESS

         (a)  A default shall occur in the payment when due (subject to any
              applicable grace period), whether by acceleration or otherwise, of
              any indebtedness (other than indebtedness described in Clause
              9.1.1) of:

              (i)    AngloGold, having a principal amount, individually or in
                     the aggregate, in excess of U.S.$25,000,000 (or the
                     equivalent thereof in any other currency); or

              (ii)   any Randgold Completion Guarantor or AngloGold (BVI),
                     having a principal amount, individually or in the
                     aggregate, in excess of U.S.$5,000,000 (or the equivalent
                     thereof in any other currency); or

              (iii)  the Borrower having a principal amount, individually or in
                     the aggregate, in excess of U.S.$3,000,000 (or the
                     equivalent thereof in any other currency); or

         (b)  a default shall occur in the performance or observance of any
              obligation or condition with respect to such indebtedness if:

              (i)    (x) the effect of such default is to permit (after the
                     passage of time, the giving of notice, the making of any
                     required determination or any combination of the foregoing)
                     the acceleration of the maturity of any such indebtedness
                     and (y) in the reasonable opinion of the Required Lenders
                     such default is not capable of being cured within the
                     applicable period for cure set forth in the relevant
                     documentation relating to such indebtedness; or

                                      -94-

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              (ii)   such default shall continue unremedied for any applicable
                     period of time sufficient to permit the holder or holders
                     of such indebtedness, or any trustee or agent for such
                     holders, to cause such indebtedness to become due and
                     payable prior to its expressed maturity.

9.1.6    BANKRUPTCY, INSOLVENCY, ETC

         (a)  Any Relevant Group Company 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 with its creditors; or

         (b)  Any Relevant Group Company or any other person, takes any action,
              or other steps are taken or legal proceedings are started, for the
              winding-up, dissolution or reorganisation of such Relevant Group
              Company or for the appointment of an examiner, receiver,
              liquidator, administrator, administrative receiver, manager or
              similar officer for it or of any or all of its assets; or

         (c)  any action or proceeding similar to those described in clause (a)
              or (b) shall occur with respect to, or be initiated by or against,
              any Relevant Group Company in any jurisdiction.

9.1.7    REQUIRED HEDGING AGREEMENTS

         Any default shall occur under any Required Hedging Agreement, any
         Required Hedging Agreement shall terminate (other than in accordance
         with its terms) or cease in whole or in part to be the legal, valid and
         binding obligation of any party thereto or any Required Hedging
         Agreement is not in compliance with the Hedging Policy; PROVIDED,
         HOWEVER, that (with respect to any such default, termination, cessation
         or non-compliance arising as a result of any action taken by, or event
         occurring with respect to, any party to such Required Hedging Agreement
         other than an Obligor) in the event that the Borrower shall have made
         arrangements within five (5) Business Days after such default,
         termination, cessation or non-compliance satisfactory to the Required
         Lenders with respect to the replacement of any such Required Hedging
         Agreement in accordance with Clause 8.1.10 and on substantially similar
         economic terms and benefits (or on such other terms or benefits as may
         be satisfactory to the Required Lenders) then no Event of Default
         shall be deemed to have occurred pursuant to this Clause.

9.1.8    PROJECT DOCUMENTS, ETC

         (a)  Any of the Material Project Documents shall terminate (other than
              in accordance with its terms in circumstances where no default in
              the performance by the Borrower or any affiliate thereof of its
              obligations has occurred and is continuing) or for any reason
              cease to be in full force and effect, except for:

              (i)    any expiration at the end of the term thereof;

                                      -95-

<PAGE>

              (ii)   any termination or replacement consented to by the Required
                     Lenders pursuant to Clause 8.2.14(b); or

              (iii)  if replacement thereof is effected as provided in Clause
                     9.1.14; or

         (b)  a default (after giving effect to any applicable grace period)
              under any of the Project Documents (excluding, however, to the
              extent referred to in Clause 9.1.7 any Required Hedging Agreement
              which is a Project Document or, to the extent referred to in
              Clause 9.1.14, the Construction Contract, the Mining Contract, the
              Power Contract or the Refining Agreement) shall occur, and such
              default is, in the reasonable opinion of the Required Lenders,
              likely to have a Materially Adverse Effect with respect to the
              Borrower (and/or, at any time on or prior to the Release Date, any
              Completion Guarantor) and the Borrower fails to obtain a
              satisfactory alternative agreement or alternative arrangements to
              satisfactorily mitigate the effect of such termination or default
              within thirty (30) days of such termination or default.

9.1.9    IMPAIRMENT OF LOAN DOCUMENTS

         This Agreement or any other Loan Document shall terminate (other than
         in accordance with its terms) or cease in whole or in any material part
         to be the legal, valid, binding and enforceable obligation of any
         Obligor party thereto, AngloGold or AngloGold (BVI); any Obligor,
         AngloGold or AngloGold (BVI) or any other party shall, directly or
         indirectly, contest in any manner such effectiveness, validity, binding
         nature or enforceability; or any lien securing any Obligation shall, in
         whole or in part, cease to be a perfected lien which, except as
         referred to in Clause 7.4(b), ranks first in priority.

9.1.10   ABANDONMENT; MINING RIGHTS.

         (a)  The Borrower shall abandon all or any significant portion of its
              interest in the Mine or the Project Assets other than as
              specifically permitted by this Agreement and each other Loan
              Document or other than as is not required in connection with the
              Morila Project.

         (b)  Any person other than the Borrower shall acquire Mining Rights in
              respect of the Morila Project.

9.1.11   JUDGMENTS

         Any judgment or order for the payment of money in excess of
         U.S.$1,000,000 (or the equivalent thereof in any other currency), shall
         be rendered against any Obligor or AngloGold (BVI), or any judgment or
         order for the payment of money in excess of U.S.$25,000,000 (or the
         equivalent thereof in any other currency) shall be rendered against
         AngloGold, and either:

         (a)  enforcement proceedings shall have been commenced by any creditor
              upon such judgment or order; or

                                      -96-

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         (b)  there shall be any period of ten (10) consecutive days during
              which a stay of enforcement of such judgment or order, by reason
              of a pending appeal or otherwise, shall not be in effect.

9.1.12   POLITICAL RISK, EXPROPRIATION, ETC.

         (a)  Either:

              (i)    any Political Risk Insurance previously obtained by any
                     Lender shall cease to be in full force and effect (other
                     than as a result of any act or omission of such Lender); or

              (ii)   as a result of any act or omission by any Obligor,
                     AngloGold or AngloGold (BVI) or any affiliate of any
                     thereof, the political risk insurer thereunder shall not be
                     liable to pay a claim thereunder which it would otherwise
                     have been liable to pay;

         (b)  any risk or event covered by any Political Risk Insurance then in
              effect shall occur; or

         (c)  any Governmental Agency or other person purporting to be, or
              acting as, any Governmental Agency condemns, nationalises, seizes
              or otherwise expropriates all or any substantial part of the
              property or other assets of the Borrower or of its share capital
              or other ownership interests, or assumes custody or control of
              such property or other assets or of the business or operations of
              the Borrower or implements any regulation or law with respect to
              the remission of funds offshore, taxation or any other matter if
              such action (together with, if applicable, any prior similar
              action) would prevent the Borrower from carrying on its
              obligations under the Operative Documents, and such condemnation,
              nationalisation, seizure, expropriation, assumption, action or
              implementation is not withdrawn, rescinded, reversed, or in the
              case of any such action with respect to property or assets, the
              same are not replaced with equivalent property or assets within
              thirty (30) days.

9.1.13   CHANGE IN CONTROL

         (a)  Any Change in Control shall occur; or

         (b)  the ordinary shares of RRL shall cease to be listed on the
              International Stock Exchange of London or the ordinary shares of
              AngloGold shall cease to be listed on the Johannesburg Stock
              Exchange.

9.1.14   DEFAULT, ETC. BY CONTRACTORS

         Either Construction Contractor, the Mining Contractor, any Power
         Contractor, the Refiner or the Operator shall default in a manner
         likely to have a Materially Adverse Effect in the performance of any of
         its material obligations under the Construction Contract, the Mining
         Contract, the Power Contract, the Refining Agreement or the Operating
         Agreement, respectively, and such person shall not have remedied such
         default within the time prescribed under the relevant contract,

                                      -97-

<PAGE>

         or the Borrower shall terminate the services of either Construction
         Contractor, the Mining Contractor, any Power Contractor, the Refiner or
         the Operator; PROVIDED, HOWEVER, that in the event that either
         Construction Contractor, the Mining Contractor, any Power Contractor or
         the Refiner shall be so unable to perform such obligations (but not,
         for the avoidance of doubt, in the event that the Borrower shall have
         so terminated the services of such person) then no Event of Default
         shall be deemed to have occurred pursuant to this Clause if the
         Borrower shall have appointed a substitute Construction Contractor,
         Mining Contractor, Power Contractor or Refiner, as the case may be, of
         international repute and of at least equivalent credit standing or the
         Borrower shall be developing the Mine on an interim basis in a manner
         which will enable the Mine to be developed and constructed as
         contemplated by the Development Plan and shall have made provision for
         the appointment of a substitute Construction Contractor, Mining
         Contractor, Power Contractor or Refiner, as the case may be, acceptable
         to the Required Lenders in their reasonable discretion within thirty
         (30) days of the occurrence of such inability to perform or
         termination.

9.1.15   FAILURE TO REACH CERTAIN MILESTONES

         The Release Date, the Economic Completion Date or the Mechanical
         Completion Date shall not have occurred on or prior to 31 December,
         2001.

9.1.16   APPROVALS

         Any Approval which is material to the Morila Project or the Mine or
         otherwise material to the conduct of the business of the Borrower or
         the performance of any Obligor's obligations under any Operative
         Agreement executed by it shall be denied or withdrawn or shall cease to
         remain in full force and effect or shall otherwise be materially
         impaired.

9.1.17   MATERIALLY ADVERSE EFFECT

         Any event shall occur or condition shall exist which constitutes a
         Materially Adverse Effect with respect to any Obligor, AngloGold or
         AngloGold (BVI).

9.1.18   DEVIATION FROM DEVELOPMENT PLAN

         Without prejudice to the provisions of Clause 8.1.9, the Borrower shall
         fail to develop the Morila Project in the manner contemplated by the
         Development Plan and such failure shall have a Materially Adverse
         Effect with respect to the Borrower.

9.1.19   FINANCIAL CONDITION

         Any of the following shall occur:

         (a)  the Loan Cover Ratio (calculated on the date of preparation of
              each Compliance Certificate with respect to any of the consecutive
              six (6) month period commencing on all Calculation Dates scheduled
              to occur on or after such date of preparation), shall be less than
              one hundred and thirty percent (130%);

                                      -98-

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         (b)  the Loan Life Ratio (calculated on the date of preparation of each
              Compliance Certificate with respect to any of the Calculation
              Dates scheduled to coincide with or occur thereafter), shall be
              less than or equal to one hundred and twenty five percent (125%);

         (c)  the Project Life Ratio (calculated on the date of preparation of
              each Compliance Certificate with respect to any of the Calculation
              Dates scheduled to coincide with or occur thereafter), shall be
              less than or equal to one hundred and forty percent (140%); and

         (d)  the Proven and Probable Reserves shall be, at any date, less than,
              or shall be scheduled at any date prior to the Final Maturity Date
              to be less than, thirty percent (30%) of the Proven and Probable
              Reserves as at the Effective Date.

9.2      ACTION IF BANKRUPTCY

         If any Event of Default described in Clause 9.1.6 shall occur, the
         Commitments (if not theretofore terminated) shall automatically
         terminate and the outstanding Principal Amount of all outstanding Loans
         and all other Obligations (excluding, however, unless express
         instructions to the contrary are received from the relevant Lender,
         Obligations in respect of any Required Hedging Agreement to which any
         Lender is a party) shall automatically be and become immediately due
         and payable, without notice or demand.

9.3      ACTION IF OTHER EVENT OF DEFAULT

         If any Event of Default (other than any Event of Default described in
         Clause 9.1.6) shall occur for any reason, whether voluntary or
         involuntary, and be continuing, the Agent may, upon the direction of
         the Required Lenders (but not otherwise), shall, upon notice or demand
         to the Borrower, declare all or any portion of the outstanding
         Principal Amount of the Loans to be due and payable and any or all
         other Obligations (excluding, however, unless express instructions to
         the contrary are received from the relevant Lender, Obligations in
         respect of any Required Hedging Agreement to which any Lender is a
         party) to be due and payable and/or the Commitments (if not theretofore
         terminated) to be terminated, whereupon the full unpaid Principal
         Amount of such Loans and any and all other Obligations which shall be
         so declared due and payable shall be and become immediately due and
         payable, without further notice, demand, or presentment, and/or, as the
         case may be, the Commitments shall terminate.

9.4      EVENT OF DEFAULT AFTER RELEASE DATE

         No Event of Default shall have, or shall be deemed to have, occurred in
         the event that any of the events referred to in Clause 9.1.5, 9.1.6,
         9.1.11, 9.1.13(b), or 9.1.17 shall have occurred with respect to any
         Completion Guarantor at any time on or after the Release Date.

10.      THE AGENT, THE ARRANGERS AND THE CO-ARRANGERS

10.1     APPOINTMENT

                                      -99-

<PAGE>

         Each of the Lenders hereby:

         (a)  appoints the Agent as its agent in connection herewith and as
              security trustee to hold the benefit of the security granted
              pursuant to those Security Agreements where it is designated as
              security trustee;

         (b)  authorises the Agent to exercise such rights, powers and
              discretions as are specifically delegated to the Agent by the
              terms hereof and the other Loan Documents together with all such
              rights, powers and discretions as are reasonably incidental
              thereto;

         (c)  agrees that, as agent for itself and the other Lender Parties (or,
              as the case may be, as security trustee), the Agent shall hold the
              benefit of the security granted pursuant to the Security
              Agreements for itself and the Lender Parties subject to and in
              accordance with the provisions hereof and of the Security
              Agreements, which provisions are hereby agreed to and approved by
              each party to this Agreement; and

         (d)  irrevocably and unconditionally authorises and requests the Agent
              to enter into the Security Agreements as agent on its behalf (or,
              as the case may be, as security trustee to hold the benefit of the
              security granted pursuant to the relevant Security Agreements).

10.2     RELIANCE, ETC

         The Agent may:

         (a)  assume that:

              (i)    any representation made by any Obligor, AngloGold or
                     AngloGold(BVI) in connection herewith or any other
                     Loan Document is true;

              (ii)   no Default has occurred; and

              (iii)  none of any Obligor, AngloGold or AngloGold (BVI) is in
                     breach of or in default of its obligations hereunder or
                     under any other Loan Document to which it is a party unless
                     the Agent has actual knowledge or actual notice to the
                     contrary;

         (b)  assume that the Dollar Lending Office of each Lender is that
              specified on the signature pages attached hereto (and, in the case
              of a Transferee Lender, at the end of the Transfer Certificate to
              which it is a party as Transferee Lender) until it has received
              from any Lender a notice designating some other office of such
              Lender to replace its Dollar Lending Office and may act upon any
              such notice until the same is superseded by a further such notice;

         (c)  engage and pay for the advice or services of any lawyers,
              accountants, surveyors or other experts whose advice or services
              may seem necessary, expedient or desirable to it and rely upon any
              advice so obtained;

                                     -100-

<PAGE>

         (d)  rely as to any matters of fact which might reasonably be expected
              to be within the knowledge of any Obligor, AngloGold or AngloGold
              (BVI), upon a certificate signed by or on behalf of such Obligor,
              AngloGold or AngloGold (BVI);

         (e)  rely upon any communication or document believed by it to be
              genuine;

         (f)  refrain from exercising any right, power or discretion vested in
              it as an agent hereunder or under any other Loan Document unless
              and until instructed by the Required Lenders as to whether or not
              such right, power or discretion is to be exercised and, if it is
              to be exercised, as to the manner in which it should be exercised;

         (g)  refrain from acting in accordance with any instructions of
              Required Lenders to begin any legal action or proceeding arising
              out of or in connection with this Agreement or any other Loan
              Document until it shall have received such security and/or further
              indemnities as it may require (whether by way of payment in
              advance or otherwise) for all costs, claims, expenses (including
              legal fees and expenses on a full indemnity basis) and liabilities
              which it will or may expend or incur in complying with such
              instructions; and

         (h)  hold or place any Loan Document and any document coming into its
              possession or control pursuant thereto in safe custody with any
              bank or other person whose business includes the safe custody of
              documents or with a lawyer or firm of lawyers in any part of the
              world, without responsibility to any Lender Party for any loss
              incurred by reason of any action or inaction on the part of any
              such person or for the supervision of any such person and may pay
              all sums required to be paid on account of or in respect of the
              foregoing.

10.3     ACTIONS

         The Agent shall:

         (a)  promptly inform each Lender of the contents of any notice or
              document received by it in its capacity as agent for the Lenders
              hereunder from any Obligor, AngloGold or AngloGold (BVI) hereunder
              or under any other Loan Document;

         (b)  promptly notify each Lender of the occurrence of any Default of
              which the Agent has actual knowledge or actual notice;

         (c)  save as otherwise provided herein, act as agent hereunder or under
              any other Loan Document to which it is a party in accordance with
              any instructions given to it by the Required Lenders, which
              instructions shall be binding on all of the Lender Parties;

         (d)  if so instructed by the Required Lenders, refrain from exercising
              any right, power or discretion vested in it as agent hereunder or
              under any other Loan Document to which it is a party.

                                     -101-

<PAGE>

10.4     LIMITATION ON ACTIONS

Notwithstanding anything to the contrary expressed or implied herein or in any
other Loan Document, the Agent shall not:

         (a)  be bound to enquire as to:

              (i)    whether or not any representation made by any Obligor,
                     AngloGold or AngloGold (BVI) in connection herewith or any
                     other Loan Document is true;

              (ii)   the occurrence or otherwise of any Default;

              (iii)  the performance by any Obligor, AngloGold or AngloGold
                     (BVI) of its obligations hereunder or under any other Loan
                     Document; or

              (iv)   any breach of, or default by any Obligor, AngloGold or
                     AngloGold (BVI) of, its obligations hereunder or under any
                     other Loan Document;

         (b)  be bound to account to any Lender Party for any sum or the profit
              element of any sum received by it for its own account;

         (c)  be bound to disclose to any other person any information relating
              to any Obligor, AngloGold or AngloGold (BVI) or any affiliate of
              any thereof if such disclosure would or might in its opinion
              constitute a breach of any law or regulation or be otherwise
              actionable at the suit of any person; or

         (d)  be under any fiduciary duty towards any Lender Party or under any
              obligations other than those for which express provision is made
              herein or in the other Loan Documents.

10.5     INDEMNIFICATION BY LENDERS

         Each Lender shall, from time to time on demand by the Agent, indemnify
         the Agent in the proportion of such Lender's Percentage at the time of
         such demand, against any and all reasonable costs, claims, expenses
         (including legal fees) and liabilities which the Agent may incur,
         otherwise than by reason of its own gross negligence or wilful
         misconduct, in acting in its capacity as Agent hereunder or under the
         other Loan Documents.

10.6     EXCULPATION

         (a)  Neither the Agent, the Arrangers nor the Co-Arrangers accept any
              responsibility for the accuracy and/or completeness of any
              information supplied by any Obligor, AngloGold or AngloGold (BVI)
              in connection herewith or with any other Loan Document or for the
              legality, validity, effectiveness, adequacy or enforceability of
              this Agreement or any other Loan Document and neither the Agent,
              the Arrangers nor the Co-Arrangers shall be under any liability as
              a result of taking or omitting to take any action in relation to
              this Agreement or any other Loan Document (including any such
              action taken or omitted to be taken prior to the Effective Date in

                                     -102-

<PAGE>

              connection with the arrangement and implementation of the
              financing facilities contemplated by this Agreement and the other
              Loan Documents), save in the case of negligence or wilful
              misconduct.

         (b)  In the event that the named insured on the policy of Political
              Risk Insurance maintained in connection with this Agreement shall
              be the Agent or the Arrangers neither the Agent nor the Arrangers
              shall be under any liability whatsoever for any invalidation,
              cancellation or avoidance of any cover provided by such policy or
              any direct or indirect loss suffered by any Lender due to such
              invalidity, cancellation or avoidance, except in respect of the
              Agent's or, as the case may be, the relevant Arranger's,
              negligence or wilful misconduct.

10.7     WAIVER

         Each of the Lender Parties agrees that it will not assert or seek to
         assert against any director, officer or employee of the Agent, either
         Arranger or any Co-Arranger any claim it might have against the Agent,
         an Arranger or a Co-Arranger in respect of the matters referred to in
         Clause 10.6.

10.8     BANKING ACTIVITIES

         Each of the Agent, the Arrangers and the Co-Arrangers may accept
         deposits from, lend money to and generally engage in any kind of
         banking or other business with, any Obligor, AngloGold, AngloGold (BVI)
         or any affiliate of any thereof.

10.9     RESIGNATION AND REPLACEMENT

         (a)  The Agent may resign as such at any time upon at least thirty (30)
              days prior notice to the Borrower and all the Lenders; provided,
              however, that no such resignation shall be effective unless a
              successor to it as the Agent is appointed in accordance with this
              Clause. Following delivery of any such notice of resignation, the
              Required Lenders may, with the prior written consent of the
              Borrower (such consent not to be unreasonably withheld or delayed;
              provided, however, that nothing herein shall oblige the Borrower
              to give any such consent in the event that the Borrower's rights
              hereunder would be materially and adversely affected by the
              replacement of the Agent as hereinafter set forth), at any time
              upon fifteen (15) days notice to the Agent and the Borrower,
              appoint another Lender as the successor Agent which shall
              thereupon become the Agent hereunder. If no successor Agent shall
              have been so appointed by the Required Lenders, and shall have
              accepted such appointment, within thirty (30) days after the
              retiring Agent's giving notice of resignation, then the retiring
              Agent may, on behalf of the Lender Parties, appoint (with the
              prior written consent of the Borrower (such consent not to be
              unreasonably withheld or delayed)) a successor Agent, which shall
              be one of the Lenders or another reputable and experienced banking
              or financial institution.

         (b)  If the Agent shall default in, or commit any act of negligence or
              wilful misconduct in connection with, the performance of any of
              its material duties under this Agreement or any other Loan
              Document then the

                                     -103-

<PAGE>

              Required Lenders may, with the prior written consent of the
              Borrower (such consent not to be unreasonably withheld or delayed
              as set forth in clause (a)), at any time upon fifteen (15) days
              notice to the Agent and the Borrower, appoint another Lender as a
              replacement Agent which shall thereupon become the Agent
              hereunder.

10.10    DISCHARGE

         If a successor to the Agent is appointed under the provisions of
         Clause 10.9, then:

         (a)  the retiring Agent shall be discharged from any further
              obligations hereunder and under the other Loan Documents but shall
              remain entitled to the benefit of the provisions of this Clause;
              and

         (b)  its successor and each of the other parties hereto shall have the
              same rights and obligations amongst themselves as they would have
              had if such successor had been an original party hereto.

10.11    CREDIT DECISIONS

         It is understood and agreed by each Lender Party that it has itself
         been, and will continue to be, solely responsible for making its own
         independent appraisal of and investigations into the financial
         condition, creditworthiness, condition, affairs, status and nature of
         each Obligor, AngloGold and AngloGold (BVI) and, accordingly, each
         Lender Party warrants to each of the Agent, the Arrangers and the
         Co-Arrangers that it has not relied and will not hereafter rely on the
         Agent, the Arrangers or the Co-Arrangers:

         (a)  to check or enquire on its behalf into the adequacy, accuracy or
              completeness of either information provided by or on behalf of any
              Obligor, AngloGold or AngloGold (BVI) in connection with this
              Agreement or any other Loan Document or the transactions herein or
              therein contemplated (whether or not such information has been or
              is hereafter circulated to such Lender Party by the Agent, an
              Arranger or a Co-Arranger); or

         (b)  to assess or keep under review on its behalf the financial
              condition, creditworthiness, condition, affairs, status or nature
              of any Obligor, AngloGold or AngloGold (BVI).

10.12    ROTHSCHILD AS THE AGENT

         In acting as the Agent, Rothschild shall be treated as a separate
         entity from any other division of Rothschild (or similar units of
         Rothschild in any subsequent reorganisation) or its affiliates and,
         without limiting the generality of the foregoing, in the event that any
         of Rothschild's divisions (or similar units) or affiliates should act
         for any Group Member in an advisory capacity in relation to any other
         matter, any information given by any Group Member to such divisions (or
         similar units) or affiliates for the purposes of obtaining advice shall
         be treated as confidential and shall not be available to the other
         Lender Parties without the consent of the Completion Guarantors; and
         notwithstanding anything to the contrary expressed or

                                     -104-

<PAGE>

         implied herein and without limiting the generality of the foregoing,
         Rothschild shall not as between itself and the other Lender Parties be
         bound to disclose to any Lender Party or other person any information
         supplied by any Group Member to Rothschild in its capacity as the Agent
         hereunder which is identified by such Group Member at the time of
         supply as being unpublished price sensitive information relating to a
         proposed transaction by a Group Member to Rothschild and supplied
         solely for the purpose of evaluating in consultation with Rothschild in
         its capacity as advisor whether such transaction might require a waiver
         or amendment to any of the provisions contained herein or in any other
         Loan Document.

10.13    ROTHSCHILD AND SBL AS ARRANGERS

         In acting as an Arranger, each of Rothschild and SBL shall be treated
         as a separate entity from any other division of Rothschild or SBL
         respectively (or similar units of Rothschild or SBL in any subsequent
         reorganisation) or their respective affiliates and, without limiting
         the generality of the foregoing, in the event that any of Rothschild's
         or SBL's divisions (or similar units) or affiliates should act for any
         Group Member in an advisory capacity in relation to any other matter,
         any information given by any Group Member to such divisions (or similar
         units) or affiliates for the purposes of obtaining advice shall be
         treated as confidential and shall not be available to the other Lender
         Parties without the consent of the Completion Guarantors; and
         notwithstanding anything to the contrary expressed or implied herein
         and without limiting the generality of the foregoing, neither
         Rothschild nor SBL shall as between itself and the other Lender Parties
         be bound to disclose to any Lender Party or other person any
         information supplied by any Group Member to Rothschild or SBL,
         respectively, in their respective capacities as an Arranger hereunder
         if such information is identified by such Group Member at the time of
         supply to Rothschild or SBL as being unpublished price sensitive
         information relating to a proposed transaction by a Group Member and
         supplied solely for the purpose of evaluating in consultation with
         either Rothschild or SBL in its capacity as advisor whether such
         transaction might require a waiver or amendment to any of the
         provisions contained herein or in any other Loan Document.

10.14    INTERPRETATION

         As used in this Clause, "actual knowledge" and "actual notice" of the
         Agent, the Arrangers and the Co-Arrangers means actual knowledge or
         notice of those officers of the Agent, or, as the case may be, an
         Arranger or a Co-Arranger, from time to time responsible for the
         performance by the Agent, or, as the case may be, an Arranger or a
         Co-Arranger, of its obligations under the Loan Documents.

10.15    AGENT TO CONDUCT PROCEEDINGS

         The Agent shall have the sole conduct of any action or proceedings to
         be taken upon the happening of an Event of Default and in the
         enforcement of any security granted by the Security Agreements and no
         Lender shall (unless the Agent otherwise requests) take any action by
         itself or in conjunction with any other Lender or any other person to
         enforce the terms of any of the Loan Documents or to terminate the
         same. If any Lender notifies the Agent that it wishes to take action

                                     -105-

<PAGE>

         as aforesaid, the Agent shall refer the same to the Lenders for
         decision in accordance with Clause 10.17. Notwithstanding anything to
         the contrary hereunder, the Agent shall not:

         (a)  formally initiate any legal action or proceedings hereunder
              against any Obligor, AngloGold or AngloGold (BVI) on behalf of any
              Lender without the prior written consent of such Lender; or

         (b)  exercise on behalf of any of the Lenders any of their rights or
              remedies hereunder or under the Security Agreements unless it has
              been instructed to do so in writing by such Lenders.

10.16    DECISIONS BY THE LENDERS

         In any case where the materiality of any matter, event or consequence
         is in question, the Agent shall be entitled (but not bound) to
         determine the same without reference to the Lenders. Any
         acknowledgement given by the Agent to any Obligor, AngloGold or
         AngloGold (BVI) that any matter, event or consequence is not material
         shall be binding on the Lenders.

         The Agent shall, unless it considers the matter in question not to be
         material, be bound (and shall in any event be entitled) to notify to
         the Lenders any question relating to the exercise by the Agent of any
         discretion, or to the giving or withholding by it of any approval or
         waiver, or of any matter dependent on its opinion, for any purposes
         under the Loan Documents.

10.17    MANNER OF REFERENCE TO LENDERS

         Whenever the Agent refers any question to the Lenders for any of the
         purposes of this Clause it shall:

         (a)  do so in writing;

         (b)  state a time (being reasonable in all the circumstances) within
              which each Lender is to give directions as aforesaid; and

         (c)  inform the Borrower of the question referred, and the Borrower may
              submit oral or written statements to all the Lenders in respect
              thereof.

         If not all the Lenders reply to the Agent within the required time as
         aforesaid (or such longer time as the Agent may allow) then the
         percentage referred to in the definition of Required Lenders shall be
         deemed to refer to the percentage of the aggregate shares of the
         Lenders who have so replied.

11.      MISCELLANEOUS

11.1     WAIVERS, AMENDMENTS, ETC

         The provisions of this Agreement and of each other Loan Document
         (except to the extent otherwise set forth in such Loan Document) may
         from time to time be amended, modified or waived, if such amendment,
         modification or waiver is in writing and consented to by each Obligor
         and/or, as the case may be, AngloGold

                                     -106-

<PAGE>

         and/or AngloGold (BVI), which, in each such case, is party to this
         Agreement or such other Loan Document, the Agent and the Required
         Lenders; provided, however, that no such amendment, modification or
         waiver which would:

         (a)  modify any requirement hereunder that any particular action be
              taken or a determination be made by, or with the consent of or in
              consultation with, all the Lenders or by the Required Lenders
              shall be effective unless consented to by each Lender;

         (b)  modify this Clause, modify Clause 8.2.7 change the definition of
              the term "REQUIRED LENDERS", change the Total Commitment Amount or
              the Percentage or Funding Percentage of any Lender or otherwise
              subject any Lender to any additional obligation shall be made
              without the consent of each Lender;

         (c)  extend the due date for, or reduce the amount of, any payment or
              prepayment of principal of or interest on any Loan or any other
              amount payable hereunder or under any other Loan Document in
              respect thereof shall be made without the consent of each Lender;

         (d)  affect the interests, rights or obligations of the Agent, either
              Arranger or any Co-Arranger in their respective capacities as such
              shall be made without the consent of the Agent or, as the case may
              be, such Arranger or Co-Arranger;

         (e)  other than as specifically permitted by this Agreement or the
              relevant Security Agreement, authorise or effect the release of
              any material portion of the collateral which is the subject of any
              lien granted or purported to be granted in favour of the Agent
              (for the rateable benefit of the Lender Parties) or in favour of
              the Lender Parties pursuant to any relevant Security Agreement
              shall be made without the consent of each Lender;

         (f)  materially reduce the obligations of any Completion Guarantor
              under the Guarantee Agreement to which such Completion Guarantor
              is a party shall be made without the consent of each Lender;

         (g)  modify any term of this Agreement or any other Loan Document
              expressly relating to the priority of payment of, or the granting
              of any security in respect of, any obligations of the Borrower,
              any Obligor, AngloGold, AngloGold (BVI) or any other subsidiary of
              AngloGold under any Required Hedging Agreement to which any Lender
              is a party shall be made without the consent of such Lender; or

         (h)  pursuant to the Political Risk Insurance require the consent of
              the provider thereof, shall be made without the consent of such
              provider.

         No failure or delay on the part of any Lender Party in exercising any
         power or right under this Agreement or any other Loan Document shall
         operate as a waiver thereof, nor shall any single or partial exercise
         of any such power or right preclude any other or further exercise
         thereof or the exercise of any other power or right. No notice to or
         demand on any Obligor in any case shall entitle it or any other

                                     -107-

<PAGE>

         Obligor to any notice or demand in similar or other circumstances. No
         waiver or approval by any Lender Party under this Agreement or any
         other Loan Document shall, except as may be otherwise stated in such
         waiver or approval, be applicable to subsequent transactions. No waiver
         or approval hereunder shall require any similar or dissimilar waiver or
         approval thereafter to be granted hereunder.

11.2     NOTICES

         All notices and other communications provided to any party hereto under
         this Agreement or any other Loan Document shall be in writing and shall
         be sent by hand delivery, courier delivery, telex (if the receiving
         party shall have telex facilities) or facsimile and addressed or
         delivered to it at its address set forth below its signature hereto and
         designated as its "ADDRESS FOR NOTICES" or at such other address as may
         be designated by such party in the relevant Loan Document or in a
         notice to the other parties. Any notice:

         (a)  if sent by hand delivery or courier delivery, shall be deemed
              received when delivered in legible form; and

         (b)  if transmitted by telex or facsimile, shall be deemed given when
              transmitted (answerback received at both the beginning and end of
              the relevant transmission in the case of telexes and transmission
              confirmed by the sending facsimile machine in the case of
              facsimiles).

11.3     COSTS AND EXPENSES

         (a)  The Borrower agrees to pay on demand:

              (i)    all reasonable legal fees and related expenses of the Agent
                     and the Arrangers incurred in connection with the
                     negotiation, preparation, execution and delivery of this
                     Agreement and each other Loan Document, including schedules
                     and exhibits, whether or not the transactions contemplated
                     hereby are consummated;

              (ii)   all reasonable out-of-pocket expenses of the Agent and the
                     Arrangers incurred in connection with any amendments,
                     waivers, consents, supplements or other modifications to
                     this Agreement or any other Loan Document as may from time
                     to time hereafter be required; and

              (iii)  any stamp or other taxes incurred in connection with the
                     preparation and review of the form of any Instrument
                     relevant to this Agreement or any other Loan Document, the
                     consideration of legal questions relevant hereto and
                     thereto and the filing, recording, refiling or re-recording
                     of any Loan Document and all amendments or supplements to
                     any thereof and any and all other documents or Instruments
                     of further assurance required to be filed or recorded or
                     refiled or re-recorded by the terms hereof or of any other
                     Loan Document.

                                     -108-

<PAGE>

         (b)  The Borrower agrees, subject to any cap or condition agreed
              between the Borrower; the Agent and the relevant adviser (where
              applicable) to pay on demand all reasonable costs and expenses of
              any Lender Party's officers or agents in connection with its
              annual on-site inspections of the Mine and all fees and expenses
              of the Independent Engineer for the preparation of each
              Semi-Annual Mine Report and each other reports required of it, the
              fees and expenses of the independent chartered accountants and
              certified public accountants in connection with the performance of
              their duties described in Clause 8.1.8, the certification of each
              Compliance Certificate, the Mechanical Completion Certificate and
              the Economic Completion Certificate and any other matter relating
              to the Morila Project and the Mine, and all reasonable fees and
              expenses of the Insurance Consultant and the Project Account Banks
              in connection with the performance of their respective duties
              referred to herein; provided, however, that, except at any time
              when any Default shall have however occurred and be continuing the
              Borrower's obligation to pay the fees and expenses of the
              Independent Engineer in respect of any on-site inspection of the
              Mine shall be limited to two (2) such inspections per period of
              twelve (12) months prior to the Economic Completion Date and one
              (1) such inspection per period of twelve (12) months thereafter.

         (c)  The Borrower agrees to reimburse each Lender Party on demand for
              all out-of-pocket expenses (including fees and expenses of legal
              advisers to such Lender Party) incurred by such Lender Party in
              connection with:

              (i)    the negotiation of any restructuring or "work-out", whether
                     or not consummated, of any Obligations; and

              (ii)   the enforcement of any Obligations.

         (d)  All fees and expenses of any legal adviser to any Lender Party
              payable by the Borrower hereunder shall be paid on a full
              indemnity basis inclusive of United Kingdom Value Added Tax or any
              other similar tax payable in connection therewith. Each Lender
              Party agrees to use reasonable efforts to recover any such tax and
              to reimburse the Borrower in the amount of any such recovery (to
              the extent previously paid by the Borrower); provided, however,
              that no Lender Party shall be under any obligation to attempt or
              effect any such recovery if, in the opinion of such Lender Party
              the act of arranging or effecting such recovery might reasonably
              be expected to result in an adverse consequence with respect to
              the business or tax position of such Lender Party.

11.4     INDEMNIFICATION

         In consideration of the execution and delivery of this Agreement by
         each Lender Party and the extension of the Commitments, the Obligors
         hereby jointly and severally indemnify, exonerate and hold each Lender
         Party and each of its officers, directors, shareholders, employees and
         agents (the "INDEMNIFIED PARTIES") free and harmless from and against
         any and all actions, causes of action, suits, losses, costs,
         liabilities and damages and expenses in connection therewith (including
         reasonable fees and expenses of legal advisers on a full indemnity
         basis and

                                     -109-

<PAGE>

         inclusive of United Kingdom Value Added Tax or any similar tax payable
         in connection therewith and including any amount paid by any Lender to
         the Agent, either Arranger or any Co-Arranger pursuant to Clause 10.5)
         (the "INDEMNIFIED LIABILITIES"), incurred by the Indemnified Parties or
         any of them as a result of, or arising out of, or relating to:

         (a)  any transaction financed or to be financed in whole or in part,
              directly or indirectly, with the proceeds of any Loan;

         (b)  entering into and performance of this Agreement and any other Loan
              Document by any of the Indemnified Parties (including any action
              brought by or on behalf of the Borrower, any other Obligor,
              AngloGold, AngloGold (BVI) or any other person as the result of
              any determination by any Lender pursuant to Clause 6 not to fund
              any Loan);

         (c)  any investigation, litigation or proceeding related to any
              environmental cleanup, audit, compliance or other matter relating
              to the protection of the environment or the release by any
              Obligor, AngloGold, AngloGold (BVI) or the Operator of any
              Hazardous Material; or

         (d)  the presence on or under, or the escape, seepage, leakage,
              spillage, discharge, emission, discharging or releases or
              threatened releases from, any real property owned or operated by
              any Obligor, AngloGold, AngloGold (BVI) or the Operator of any
              Hazardous Material (including any losses, liabilities, damages,
              injuries, costs, expenses or claims asserted or arising under any
              Environmental Law, regardless of whether caused by, or within the
              control of, such Obligor;

         except for any such Indemnified Liabilities arising for the account of
         a particular Indemnified Party by reason of the relevant Indemnified
         Party's negligence or wilful misconduct, and if and to the extent that
         the foregoing undertaking may be unenforceable for any reason, each
         Obligor hereby jointly and severally agrees to make the maximum
         contribution to the payment and satisfaction of each of the Indemnified
         Liabilities which is permissible under Applicable Law; provided,
         however, that no Randgold Completion Guarantor shall be under any
         liability pursuant to clause (a) or (b) after the Release Date except
         with respect to any Indemnified Liability arising, in whole or in part,
         as a result of any event or failure to act which occurred on or prior
         to the Release Date.

         Each Lender Party agrees to use reasonable efforts to recover any such
         United Kingdom Value Added Tax or any similar tax payable in connection
         with the Indemnified Liabilities and to reimburse the Borrower in the
         amount of any such recovery (to the extent previously paid by the
         Borrower); provided, however, that no Lender Party shall be under any
         obligation to attempt or effect any such recovery if, in the opinion of
         such Lender Party the act of arranging or effecting such recovery might
         reasonably be expected to result in an adverse consequence with respect
         to the business or tax position of such Lender Party.

11.5     SURVIVAL

                                     -110-

<PAGE>

         The obligations of the Borrower under Clauses 3.3, 5.2, 5.3, 5.4, 5.6,
         11.3 and 11.4 and of each Randgold Completion Guarantor under Clauses
         5.6 and 11.4 and the obligations of the Lenders under Clause 10.5,
         shall, in each case, survive any termination of this Agreement. The
         representations and warranties made by each Obligor in this Agreement
         and in each other Loan Document to which it is a party shall survive
         the execution and delivery of this Agreement and each such other Loan
         Document.

11.6     SEVERABILITY

         Any provision of this Agreement or any other Loan Document which is
         prohibited or unenforceable in any jurisdiction shall, as to such
         jurisdiction, be ineffective to the extent of such prohibition or
         unenforceability without invalidating the remaining provisions of this
         Agreement or such other Loan Document or affecting the validity or
         enforceability of such provision in any other jurisdiction.

11.7     HEADINGS

         The various headings of this Agreement and of each other Loan Document
         are inserted for convenience only and shall not affect the meaning or
         interpretation of this Agreement or such other Loan Document or any
         provisions hereof or thereof.

11.8     COUNTERPARTS, EFFECTIVENESS, ETC

         This Agreement may be executed by the parties hereto in several
         counterparts, each of which shall, when executed, be deemed to be an
         original and all of which shall constitute together but one and the
         same agreement. This Agreement shall become effective on the date (the
         "EFFECTIVE DATE") when counterparts hereof executed on behalf of each
         Obligor, each Arranger, each Co-Arranger, and each Lender (or notice
         thereof satisfactory to the Agent) shall have been received by the
         Agent.

11.9     GOVERNING LAW; ENTIRE AGREEMENT

         (a)  This Agreement and (except as set forth to the contrary therein)
              each other Loan Document and all matters and disputes relating
              hereto and thereto shall be governed by, and construed in
              accordance with, English law.

         (b)  This Agreement and the other Loan Documents constitute the entire
              understanding among the parties hereto with respect to the subject
              matter hereof and thereof and supersede any prior agreements,
              written or oral, with respect thereto.

11.10    ASSIGNMENTS AND TRANSFERS BY THE OBLIGORS

         No Obligor shall be entitled to assign or transfer all or any of its
         rights, benefits and obligations hereunder or under any other Loan
         Document except with the consent of the Lenders.

11.11    ASSIGNMENTS AND TRANSFERS BY THE LENDERS; ADDITIONAL LENDER

                                     -111-

<PAGE>

         Any Lender may at any time assign all or any of its rights and benefits
         hereunder to another bank or financial institution in accordance with
         this Clause.

11.11.1  ASSIGNMENTS

         Any Lender may, with the prior consent of the Borrower (such consent
         not to be unreasonably withheld), at any time assign and transfer, all
         or, subject to Clause 11.11.3, a portion of its rights and benefits
         hereunder to another bank or financial institution or, in connection
         with any payment made to such Lender pursuant to any Political Risk
         Insurance, to the issuer of the relevant policy. If any Lender chooses
         to effect an assignment pursuant to this Clause, such assignment and
         transfer shall not be effective unless and until the assignee Lender
         has agreed with the Agent and the other Lenders that the assignee
         Lender shall be under the same obligations toward each of them as it
         would have been under if it had been a party hereto as a Lender and the
         Agent and the other Lenders shall not otherwise be obligated to
         recognise such assignee Lender as having the rights against each of
         them which it would have had if it had been such a party hereto. Any
         assignment or transfer pursuant to this Clause 11.11.1 shall be
         effective only after delivery to and acceptance by, the Agent of an
         instrument, in form and substance satisfactory to it (acting
         reasonably), executed by the assignor Lender and the assignee Lender
         stating the portion of the Commitment Amount assigned to the assignee
         Lender and the assignee Lender's administrative details.

11.11.2  TRANSFERS

         As an alternative to Clause 11.11.1, if any Lender (a "TRANSFEROR
         LENDER") wishes to transfer all or, subject to Clause 11.11.3, a
         portion of its rights, benefits and obligations (such transfer to be of
         an equal portion of such rights, benefits and obligations) hereunder
         and under each other Loan Document to another bank or financial
         institution or, in connection with any payment made to such Lender
         pursuant to any Political Risk Insurance, to the issuer of the relevant
         policy (a "TRANSFEREE LENDER"), then such transfer may, with the prior
         consent of the Borrower (such consent not to be unreasonably withheld),
         be effected by the delivery to the Agent of a duly completed and
         executed Transfer Certificate, whereupon:

         (a)  to the extent that in such Transfer Certificate the Transferor
              Lender party thereto seeks to transfer its rights and obligations
              hereunder and under each other Loan Document, each Obligor and
              such Transferor Lender shall be released from further obligations
              towards one another hereunder and their respective rights against
              one another shall be cancelled (such rights and obligations being
              referred to in this Clause as "discharged rights and
              obligations");

         (b)  each Obligor and the Transferee Lender party thereto shall assume
              obligations towards one another and acquire rights against one
              another which differ from such discharged rights and obligations
              only insofar as such Obligor and such Transferee Lender have
              assumed and acquired the same in place of such Transferor Lender;
              and

                                     -112-

<PAGE>

         (c)  the Agent, such Transferee 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 such
              Transferee Lender been an original party to this Agreement as a
              Lender with the rights and obligations acquired or assumed by it
              as a result of such transfer.

11.11.3  MINIMUM AMOUNT

         Any assignment or transfer pursuant to Clause 11.11.1 or 11.11.2 of a
         portion of a Lender's rights and/or benefits shall be in an integral
         multiple of U.S.$1,000,000; provided, however, that in the event of any
         such assignment or transfer to the issuer of any policy of Political
         Risk Insurance the amount so assigned or transferred, as the case may
         be, may be in such other amount as such Lender may have received
         pursuant to such policy.

11.11.4  SECURITY AGREEMENTS

         Within ten (10) Business Days after an assignment or transfer pursuant
         to this Clause 11.11 and upon the written request (given through the
         Agent), and at the cost and expense, of the relevant assignee Lender or
         Transferee Lender, as the case may be, each Obligor shall enter into
         such documentation as the assignee Lender shall reasonably request so
         as to ensure that the liens created by the Security Agreements secures
         the Obligations of the Borrower to such assignee Lender or Transferee
         Lender, as the case may be.

11.11.5  CONSENT

         Any assignment or transfer pursuant to Clause 11.11 may be effected
         only with the prior written consent of the Agent, such consent not to
         be unreasonably withheld or delayed.

11.11.6  RELIANCE ON INSTRUMENTS

         The Agent shall be fully entitled to rely on any written instrument
         delivered to it in accordance with Clause 11.11.1 or on any Transfer
         Certificate which is correct and regular on its face as regards its
         contents and purportedly executed on behalf of the relevant parties
         thereto and shall have no liability or responsibility to any party as a
         consequence of placing reliance upon and acting in accordance with any
         such written instrument or Transfer Certificate.

11.11.7  SUB-PARTICIPATIONS

         Nothing in this Clause 11 shall, or shall be deemed to, prevent any
         Lender from selling any participation or similar interest in its
         Commitment or Loans and the Obligors hereby acknowledge and agree that
         in connection with any such sale, the seller of any such participation
         shall be entitled to claim under the provisions of Clause 5.2, 5.3,
         5.4, 5.5, 5.6, 5.8, 5.9, 5.11(b), 11.3 and 11.4 hereof on behalf of the
         purchaser of any such participation as if such purchaser was named as a
         Lender in such provisions (but in no event shall such seller be
         entitled to claim any amount on behalf of any such purchaser under any
         such provision which is in excess of the amount which such seller would
         then be entitled to claim under such provision in

                                     -113-

<PAGE>

         respect of the portion of its Commitments or Loans so participated);
         provided, however, that:

         (a)  for the avoidance of doubt, the sale by any Lender of any such
              participation or similar interest shall not relieve such Lender of
              any of its obligations hereunder, and

         (b)  the Obligors shall be required to deal only with the Lenders and
              not with any purchaser of a participation from any Lender.

11.11.8  FEE

         On the date upon which an assignment or transfer takes effect pursuant
         to Clause 11.11, the assignee Lender or Transferee Lender, as the case
         may be, in respect of such assignment or transfer shall pay to the
         Agent for its own account a fee of U.S.$3,000 (or, if such assignee
         Lender or Transferee Lender, as the case may be, is already a Lender
         under this Agreement, U.S.$1,000).

11.11.9  PROVISION OF INFORMATION

         In connection with any assignment, transfer or sale of a participation
         or similar interest by any Lender as contemplated by this Clause such
         Lender may, subject to the provisions of Clauses 11.17 and 11.18,
         supply to the relevant assignee Lender, Transferee Lender or purchaser
         such information in its possession with respect to such Lender's Loans
         and Commitment, the Morila Project and the Operative Documents as such
         Lender shall deem appropriate.

11.12    OTHER TRANSACTIONS

         Without prejudice to the provisions of Clause 10.8, nothing contained
         herein shall preclude any Lender Party from engaging in any
         transaction, in addition to those contemplated by this Agreement or any
         other Loan Document, with any Obligor, AngloGold, AngloGold (BVI) or
         any of their respective affiliates in which such Obligor, AngloGold,
         AngloGold (BVI) or such affiliate is not restricted hereby from
         engaging with any other person.

11.13    FORUM SELECTION AND CONSENT TO JURISDICTION

         (a)  The parties hereto hereby irrevocably agree that the courts of
              England shall have non-exclusive jurisdiction to hear and
              determine any suit, action or proceeding, and to settle any
              disputes, which may arise out of or in connection with this
              Agreement and each other Loan Document and, for such purposes,
              irrevocably submits to the non-exclusive jurisdiction of such
              courts.

         (b)  Each Obligor irrevocably waives any objection which it might now
              or hereafter have to the courts referred to in clause (a) being
              nominated as the forum to hear and determine any suit, action or
              proceeding, and to settle any disputes, which may arise out of or
              in connection with this Agreement or any other Loan Document and
              agrees not to claim that any such court is not a convenient or
              appropriate forum.

                                     -114-

<PAGE>

         (c)  Each Obligor agrees that the process by which any suit, action or
              proceeding is begun may be served on it by being delivered in
              connection with any suit, action or proceeding in England, to it
              at c/o Fleetside Legal Representative Services Limited, 9
              Cheapside, London EC2V 6AD (the "PROCESS AGENT").

         (d)  The submission to the jurisdiction of the courts referred to in
              clause (a) shall not (and shall not be construed so as to) limit
              the right of the Lender Parties or any of them to take proceedings
              against any Obligor in any other court of competent jurisdiction
              nor shall the taking of proceedings in any one or more
              jurisdictions preclude the taking of proceedings in any other
              jurisdiction, whether concurrently or not.

11.14    WAIVER OF IMMUNITY

         To the extent that any Obligor may be entitled in any jurisdiction to
         claim for itself or its assets, immunity from suit, execution,
         attachment or other legal process whatsoever, it hereby irrevocably
         agrees not to claim and hereby irrevocably waives such immunity to the
         fullest extent permitted by the laws of such jurisdiction.

11.15    ENGLISH LANGUAGE

         This Agreement and the other Loan Documents have been negotiated in
         English and, other than the Mali Security Agreements, executed in the
         English language. All certificates, reports, notices and other
         documents and communications given or delivered pursuant to this
         Agreement and the other Loan Documents shall be in the English language
         or, if not in the English language, shall be accompanied by a certified
         English translation thereof. In the case of any document originally
         issued in a language other than English, the English language version
         of any such document shall, absent manifest error, control the meaning
         and interpretation of the matters set forth therein.

11.16    ENTIRE AGREEMENT

         This Agreement and the other Loan Documents constitute the entire
         agreement and understanding of the parties and supersedes any previous
         agreement between the parties relating to the subject matter of this
         Agreement. Each of the parties acknowledges and agrees that in entering
         into this Agreement and the other Loan Documents it does not rely on,
         and shall have no remedy in respect of, any statement, representation,
         warranty or understanding (whether negligently or innocently made) of
         any person (whether party to this Agreement or not) other than as
         expressly set out in this Agreement as a warranty. The only remedy
         available to any party hereto for breach of the warranties shall be for
         breach of contract under the terms of this Agreement or the relevant
         Loan Document. Nothing in this Clause shall, however, operate to limit
         or exclude any liability for fraud.

11.17    CONFIDENTIALITY OBLIGATIONS

         Subject to Clause 11.18, at all times during the continuance of this
         Agreement and after the termination hereof (however caused) the Lender
         Parties shall and shall

                                     -115-

<PAGE>

         procure that their respective officers, employees, agents and advisers
         shall keep secret and confidential and not without prior written
         consent of the Borrower disclose to any third party or make use of for
         their own purposes (otherwise than in the context of an addition to the
         general experience, knowledge or expertise of the Lender Parties) any
         of the confidential information, reports or documents supplied by or on
         behalf of the Borrower or the other Obligors hereunder or in the course
         of the negotiations leading to this Agreement or any of the
         calculations made or conclusions or determinations reached in
         accordance therewith.

11.18    PERMITTED DISCLOSURE

         Any Lender Party shall be entitled to disclose any such confidential
         information, report, documentation, calculations, conclusion or
         determination to any other of the Lender Parties or to their respective
         professional advisers (including the Independent Engineer and the
         Insurance Consultant) or to the extent permitted by Applicable Law
         (after reasonable prior notice to the Borrower):

         (a)  in any proceedings arising out of or in connection with this
              Agreement to the extent reasonably considered by any Lender Party
              to be desirable to protect its interests;

         (b)  to any prospective assignee or sub-participant subject to
              obtaining an undertaking from such prospective assignee or
              sub-participant in the terms of this Clause;

         (c)  if required to do so by an order of any court of competent
              jurisdiction;

         (d)  in pursuance of any procedure for discovery of documents in any
              proceedings before any such court;

         (e)  pursuant to any law or regulation having the force of law or with
              which the relevant Lender Party is accustomed to comply; or

         (f)  pursuant to a requirement of any authority with whose
              requirements, of the nature and to the extent in question, the
              relevant Lender Party is accustomed to comply;

         and any of the Lender Parties shall be entitled so to disclose or use
         any such matter if the information contained therein shall have
         emanated bona fide from some person other than any Obligor or any agent
         of any of them, and such Lender Party would but for the preceding
         provisions of this Clause be free so to disclose or use the same.

                                     -116-

<PAGE>

                                   SCHEDULE 1

                              DISCLOSURE SCHEDULE

     ITEM 1 APPROVALS

     PART A CURRENT APPROVALS

<TABLE>
<CAPTION>
           AGENCY                                     PERMIT, APPROVAL OR NOTIFICATION                    DATE

<S>  <C>                                         <C>                                                <C>
1.   National Directorate of civil               No. 0468/DNAC/BV/DBA/12-Establishment of             15 June, 1998
     aeronautics                                 a private airport at Morila

2.   Ministry of Mines and Energy                No. 99/0251/MME-SG Extraction of river sand          27 August, 1999

3.   Ministry of Mines and Energy                No. 99/2000/MME-SG Extraction of Stone-Sanso        8 September, 1999

4.   Ministry of Mines and Energy                No 99/1626/MME-SG Extraction of Stone-Menie          12 August, 1999

5.   Ministry of Mines and Energy                Morila Establishment Convention                       28 April, 1992

6.   Presidency of Transitional                  Ordinance No. 92-27/P-CTSP Approval of                 12 May, 1992
     Committee                                   Morila Establishment Convention

7.   Office of the President of                  Decree No. 92-146/PM-RM Approval of                    14 May, 1992
     Government                                  Morila Establishment Convention

8.   Ministry of Mines and Energy                Order No. 92-2505/MME-CAB Exploration                  3 June, 1992
                                                 Permit for Morila

9.   Ministry of Mines and Energy                Order No. 95-2249/MMEH-SG 1st                        13 October, 1995
                                                 Renewal of Exploration Permit for Morila

10.  Ministry of Mines and Energy                Order No. 97-189/MMEH-SG Transfer of                 18 February, 1997
                                                 Exploration Permit for Morila

11. Ministry of Mines and Energy                 Order No. 99-636/MME-SG 2nd Renewal                    13 April, 1999
                                                 of Exploration Permit for Morila

12. Ministry of Mines and Energy                 Formal notification of the Government's                 9 June, 1999
                                                 participation in Morila S.A.

13. Office of the Prime Minister                 Decree No. 99-217/PM-RM Exploitation                    4 August, 1999
                                                 Permit for Morila

14. Office of the Prime Minister                 Decree No. 99-361/PM-RM Transfer of                  17 November, 1999
                                                 Exploitation Permit from RRL to Morila
</TABLE>

                                     -117-

<PAGE>

PART B PENDING APPROVALS

<TABLE>
<CAPTION>
                                                      PERMIT, APPROVAL
               AGENCY                                 OR NOTIFICATION                                    DATE

<S>                                               <C>                                               <C>
1.  Ministry of Mines and Energy                  Adoption of Amendment to Establishment            Prior to initial Loans
                                                  Convention

2.  Office of the Prime Minister                  Decree approving the Amendment to                 Prior to initial Loans
                                                  Establishment Convention

3.  Directorate of Water Affairs                  Approval to Abstract Water for                    Prior to initial Loans
                                                  Mining purposes from Bagoe River

4.  Ministry of Mines and Energy                  Protocol Agreement with the Agent                 Prior to initial Loans
    Ministry of Finance
</TABLE>

ITEM 2 [INTENTIONALLY LEFT BLANK]

ITEM 3 ASSETS; PROPERTIES

The Borrower has entered into a deferred terms agreement with Rolls Royce Power
Ventures for the acquisition of power generation equipment as part of the Power
Contract. The agreement is an instalment sale agreement and the Borrower only
obtains title to the power generation equipment on payment of the final payment.
The Borrower will, however, capitalise the instalment sale agreement in its
books and account for future payments as debt.

                                     -118-

<PAGE>

ITEM 4 RELEVANT GROUP COMPANIES

<TABLE>
<CAPTION>
                                                                               PERCENTAGE
                                                 JURISDICTION OF               OWNERSHIP
               COMPANY                           INCORPORATION                   BY RRL
<S>                                              <C>                              <C>
Randgold Resources Limited                           Jersey                        N/A

Randgold Resources (Burkina Faso) Limited            Jersey                       100%

Randgold Resources (Cote d'Ivoire) Limited           Jersey                       100%

Randgold Resources Cote d'Ivoire SARL            Cote d'Ivoire                    100%

Randgold Resources (Mali) Limited                    Jersey                       100%

Randgold Resources Mali SARL                          Mali                        100%

Randgold Resources (Senegal) Limited                 Jersey                       100%

Randgold Resources (Somisy) Limited                  Jersey                       100%

Mining Investments Jersey Limited                    Jersey                       100%

Morila Limited                                       Jersey                       100%

Societe des Mines de Morila S.A.                      Mali                         40%

Societe des Mines de Syama S.A.                       Mali                         75%

Societe des Mines de Loulo S.A.                       Mali                         51%
</TABLE>

ITEM 5 [INTENTIONALLY LEFT BLANK]

ITEM 6 ENVIRONMENTAL MATTERS

PART A PROJECT

None

PART B GROUP

None

                                     -119-

<PAGE>

ITEM 7 [INTENTIONALLY LEFT BLANK]

ITEM 8 TAKE OR PAY CONTRACTS

Payment for the provision of power to the Borrower from Rolls Royce Power
Ventures pursuant to the Power Contract.

ITEM 9 ROYALTY AGREEMENTS

The only royalty arrangement in respect of the Morila Project is the 6% of net
revenue from gold payable to the government of Mali and is set out in Article
22.2(m) and (n) of the Establishment Convention as follows:

         (g)     Ad Valorem tax at a rate of 3% of the value ex field. By value
                 ex field should be understood the value of products sold to
                 the refinery less all refining costs or any other process or
                 means of treatment necessary for the transformation of mineral
                 substances into a commercial final product, commissions on
                 marketing of the products, costs for transport, weighing,
                 analysis, where applicable, which have not already been
                 deducted by the purchaser;

         (h)     Tax on services rendered at a rate of 3% of the value ex field
                 as defined in Article 22.2(m) of the Establishment Convention
                 above.

ITEM 10 TAXES

Summary details of taxes required to be paid in connection with the development
of the Morila Project extracted from the Establishment Convention are as
follows:

Up to the end of the third year of production the Borrower, RRL and/or their
affiliates and sub-contractors, depending on the circumstances, shall be exempt
from all tax, duties, contributions or any other direct or indirect taxes that
they may have to pay, with the exception of:

         (i)     surface fee of CFA 50,000/km(2) per year;

         (j)     the Employers Standard Contribution (CFE) at the rate in force
                 on the date of signature of the present Convention (the basis
                 being equal to the total gross sum of wages, salaries and pay
                 of employees, including expatriate employees);

         (k)     the social welfare levies and contributions due for employees,
                 including expatriate employees, as provided for in the current
                 legislation;

         (l)     General Tax on Revenue due by employees;

         (m)     duties on vehicles except for on-site vehicles and other
                 vehicles directly related to exploration operations;

                                     -120-

<PAGE>

         (n)     stamp duties on intended imports with regard to vehicles as
                 well as tax on related insurance contracts, with the exception
                 of on-site vehicles and/or other vehicles directly related to
                 exploration operations;

         (o)     Ad Valorem tax at the rate of 3% of the value ex field. By
                 value ex field should be understood to be the value of
                 Products sold to the refinery less all refining costs or any
                 other process or means of treatment necessary for the
                 transformation of mineral substances into a commercial final
                 product, commissions on marketing of the products, costs for
                 transport, weighing, analysis, where applicable, which have
                 not already been deducted by the purchaser;

         (p)     Tax on services rendered at a rate of 3% of the value ex field
                 as defined in (g) above.

The last two are classified as royalty payments (see Item 9 above).

                                     -121-

<PAGE>

                                   SCHEDULE 2

                               CASH FLOW SCHEDULE

                                     -122-

<PAGE>

MORILA GOLD PROJECT
DATA AUDITED BY SRK APRIL 2001

<TABLE>
<CAPTION>

                                                                            2000
------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SUMMARY                                                           2000       Qtr1       Qtr2       Qtr3       Qtr4

<S>                                                       <C>             <C>        <C>        <C>        <C>       <C>
                                                                             Y
ORE TONNES MINED                                          tonnes '000's     665        696        860        597        730
ORE GRADE                                                      g/t          8.97       8.87       6.63       5.90       6.87

RECOVERY EFFICIENCY                                             %          96.26%     87.43%     91.32%     91.13%     91.05%

Gold Production                                                 oz        166,166    144,599    154,059    147,539    145,980

Gold Price - Spot                                             US$/oz        250        250        250        250        250
Gold Price - Hedged                                            ozs           0         275        275        275        275

Mining Costs                                                   US$m         3.50       5.42       7.70       5.35       8.35
Plant Costs                                                    US$m         1.98       3.20       2.76       2.62       2.67
General & Administration (incl Fees)                           US$m         5.53       6.44       6.47       6.47       6.48
Power plant costs                                              US$m         0.00       0.88       0.88       0.88       0.88
OPERATING COSTS                                                US$m        11.01      15.94      17.82      15.31      18.39

SENSITIVITY ADJUSTMENT                                         100%         100%       100%       100%       100%       100%
TOTAL OPERATING COSTS                                          US$m        11.01      15.94      17.82      15.31      18.39

CAPITAL EXPENDITURE                                            US$m        102.98      3.52       3.52       3.52       3.52
WORKING CAPITAL IN CONSTRUCTION PERIOD                         US$m        20.00       0.00       0.00       0.00       0.00

TOTAL REVENUE                                                  US$m        41.54      37.71      40.08      38.45      38.06

ROYALTY PAID                                                   US$m         0.00       2.26       2.40       2.30       2.28
TAX PAYABLE                                                    US$m         0.00       0.00       0.00       0.00       0.00

FINANCE & LEGAL COSTS                                          US$m         2.00       0.00       0.00       0.00       0.00
POLITICAL RISK INSURANCE                                       1.30%        1.11       0.28       0.29       0.26       0.25

PROJECT CASHFLOW BEFORE FINANCING (INTEREST ETC)               US$m       (95.55)     15.72      16.05      17.05      13.62

FINANCIAL SUMMARY                                                           2000

Debt Contribution                                              US$m        85.00       0.00       5.00       0.00       0.00
Equity Contribution / Shareholder loans                        US$m        33.00      (3.00)      0.00       0.00       0.00
Net Cash Flow                                                  US$m        22.45      12.72      21.05      17.05      13.62

NPV OF CASH FLOW, LOAN LIFE                                   9.00%        265.11     275.41     268.68     253.49     241.96
NPV OF CASH FLOW, PROJECT LIFE                                9.00%        307.28     331.67     325.26     310.38     299.17
Loan Outstanding Start of Period                               US$m        85.00      85.00      90.00      81.00      75.81
Loan Outstanding End of Period                                 US$m        85.00      85.00      81.00      81.00      66.81
LOAN LIFE RATIO                                               **1.5         3.12       3.24       3.11       3.28       3.35
PROJECT LIFE RATIO                                            **1.8         3.62       3.90       3.74       3.98       4.10
Scheduled Repayments                                           US$m         0.00                  9.00                  9.00
Interest Payments                                             8.00%         5.10       1.70       1.71       1.62       1.43
Total Debt Service                                             US$m         5.10       1.70      10.71       1.62      10.43
Net Cash Flow less Debt Service                                US$m        17.35      11.02      10.34      15.43       3.20

6 Months Debt Service Reserve Account Contribution             US$m         n/a       11.02       1.03      (0.30)     (0.23)
6 Months Debt Service Reserve Account Opening Balance          US$m         n/a        n/a       11.02      12.05      11.75
6 Months Debt Service Reserve Account Closing Balance          US$m         n/a       11.02      12.05      11.75      11.52

NET CASH FLOW AFTER FINANCE                                    US$m        17.35       0.00       9.31      15.72       3.42
                                                                         ----------
CASH OPENING BALANCE                                                        0.58      17.93      27.93      20.24      10.00
                                                                         ----------
                                                                                               ----------
MINIMUM WORKING CAPITAL IN PROJECT                             US$m                    0.00      10.00      10.00      10.00
                                                                                               ----------
CASH AVAILABLE FOR DISTRIBUTION / SWEEPS                                   17.93      17.93      27.24      25.97       3.42

Bank prepayment - 20% of NCF after finance                    20.0%         3.59       3.59       5.45       5.19       0.68
Bank prepayment - capped at one year                          20.0%         0.00       3.59       5.45       5.19       0.68
Bank prepayment - quarterly                                                            3.59       5.45       5.19       0.68
CASH SWEEP - (QUARTERLY) TO BANKS                             20.0%         0.00       0.00       0.00       5.19       0.68
AGREED PAYMENT TO SHAREHOLDERS                                 US$m         0.00       0.00      17.00       0.00       0.00

CASH FLOW ATTRIBUTABLE TO PROJECT OR SPONSORS                  US$m        17.93      17.93      10.24      20.77       2.74
CASH FLOW DISTRIBUTED TO PROJECT OR SPONSORS                   100%                    0.00       0.00      20.77       2.74
CASH CLOSING BALANCE                                           US$m        17.93      17.93      10.24       0.00       0.00

Remaining Reserves (oz's)                                   4,628,102    4,461,936  4,317,338  4,163,279  4,015,740  3,869,760
REMAINING RESERVES / PERIOD 1 RESERVES                       ****30%         96%        93%        90%        87%        84%
NET CASH FLOW / DEBT SERVICE                               **** 130%        n.a.       748%       196%      1052%       131%

CASH COST / OZ (OPEX ONLY)                                    US$/oz       66.23      110.21     115.65     103.78     125.96

TOTAL COST/OZ (INCL. TAXES,PRI,WORKING CAP,DEBT SERVICE)      US$/oz       735.34     163.87     225.53     156.05     238.83
------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
                                                                2001                                                   2002
------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SUMMARY                                               2001       Qtr1       Qtr2       Qtr3       Qtr4       2002
<S>                                                          <C>        <C>        <C>        <C>        <C>        <C>
                                                                 Y                                                      Y
ORE TONNES MINED                                               2,883       823        956        644        888       3,311
ORE GRADE                                                       7.08       5.62       5.92       8.32       8.52       7.01

RECOVERY EFFICIENCY                                            90.23%     90.50%     90.75%     91.17%     91.96%     91.16%

Gold Production                                               592,177    131,422    137,807    149,713    175,830    594,774

Gold Price - Spot                                               250        250        250        250        250        250
Gold Price - Hedged                                             275        275        275        275        275        275

Mining Costs                                                   26.81       9.37       9.07       5.18       7.09      30.71
Plant Costs                                                    11.26       3.00       2.86       2.88       2.86      11.60
General & Administration (incl Fees)                           25.86       7.01       6.66       6.71       6.79      27.18
Power plant costs                                               3.54       0.81       0.81       0.81       0.81       3.24
OPERATING COSTS                                                67.47      20.18      19.41      15.57      17.55      72.72

SENSITIVITY ADJUSTMENT                                          100%       100%       100%       100%       100%       100%
TOTAL OPERATING COSTS                                          67.47      20.18      19.41      15.57      17.55      72.72

CAPITAL EXPENDITURE                                            14.10       1.99       1.99       1.99       1.99       7.96
WORKING CAPITAL IN CONSTRUCTION PERIOD                          0.00       0.00       0.00       0.00       0.00       0.00

TOTAL REVENUE                                                  154.31     33.91      35.50      38.48      45.01      152.90

ROYALTY PAID                                                    9.24       2.03       2.13       2.30       2.70       9.16
TAX PAYABLE                                                     0.00       0.00       0.00       0.00       0.00       0.00

FINANCE & LEGAL COSTS                                           0.00       0.00       0.00       0.00       0.00       0.00
POLITICAL RISK INSURANCE                                        1.08       0.21       0.21       0.18       0.17       0.77

PROJECT CASHFLOW BEFORE FINANCING (INTEREST ETC)               62.43       9.49      11.77      18.43      22.60      62.30

FINANCIAL SUMMARY                                               2001                                                   2002

Debt Contribution                                               5.00       0.00       0.00       0.00       0.00       0.00
Equity Contribution / Shareholder loans                        (3.00)      0.00       0.00       0.00       0.00       0.00
Net Cash Flow                                                  64.43       9.49      11.77      18.43      22.60      62.30

NPV OF CASH FLOW, LOAN LIFE                                    266.52     233.61     229.21     222.43     208.84     226.07
NPV OF CASH FLOW, PROJECT LIFE                                 312.48     291.15     287.08     280.64     267.40     276.18
Loan Outstanding Start of Period                               90.00      66.13      64.45      55.08      51.55      66.12
Loan Outstanding End of Period                                 72.00      66.13      55.45      55.08      42.55      48.12
LOAN LIFE RATIO                                                 2.96       3.71       3.73       4.24       4.26       3.59
PROJECT LIFE RATIO                                              3.47       4.58       4.63       5.30       5.40       4.35
Scheduled Repayments                                           18.00                  9.00                  9.00      18.00
Interest Payments                                               6.48       1.32       1.20       1.10       0.94       4.57
Total Debt Service                                             24.48       1.32      10.20       1.10       9.94      22.57
Net Cash Flow less Debt Service                                39.95       8.17       1.57      17.33      12.66      39.73

6 Months Debt Service Reserve Account Contribution             11.52      (0.22)     (0.26)     (0.30)     (0.31)     (1.09)
6 Months Debt Service Reserve Account Opening Balance           n/a       11.52      11.30      11.04      10.74      11.52
6 Months Debt Service Reserve Account Closing Balance          11.52      11.30      11.04      10.74      10.43      10.43

NET CASH FLOW AFTER FINANCE                                    28.43       8.39       1.83      17.63      12.97      40.82
CASH OPENING BALANCE                                           27.93      10.00      10.00      10.00      10.00      10.00
MINIMUM WORKING CAPITAL IN PROJECT                             10.00      10.00      10.00      10.00      10.00      10.00
CASH AVAILABLE FOR DISTRIBUTION / SWEEPS                       46.36       8.39       1.83      17.63      12.97      40.82

Bank prepayment - 20% of NCF after finance                     14.91       1.68       0.37       3.53       2.59       8.16
Bank prepayment - capped at one year                           14.91       1.68       0.37       3.53       2.59       8.16
Bank prepayment - quarterly                                                1.68       0.37       3.53       2.59
CASH SWEEP - (QUARTERLY) TO BANKS                               5.88       1.68       0.37       3.53       2.59       8.16
AGREED PAYMENT TO SHAREHOLDERS                                 17.00       0.00       0.00       0.00       0.00       0.00

CASH FLOW ATTRIBUTABLE TO PROJECT OR SPONSORS                  23.49       6.71       1.47      14.11      10.38      32.65
CASH FLOW DISTRIBUTED TO PROJECT OR SPONSORS                   23.49       6.71       1.47      14.11      10.38      32.65
CASH CLOSING BALANCE                                            0.00       0.00       0.00       0.00       0.00       0.00

Remaining Reserves (oz's)                                    3,869,760  3,738,337  3,600,530  3,450,816  3,274,986  3,274,986
REMAINING RESERVES / PERIOD 1 RESERVES                          84%        81%        78%        75%        71%        71%
NET CASH FLOW / DEBT SERVICE                                    263%       717%       115%      1673%       227%       276%

CASH COST / OZ (OPEX ONLY)                                     113.94     153.57     140.82     104.02     99.84      122.26

TOTAL COST/OZ (INCL. TAXES,PRI,WORKING CAP,DEBT SERVICE)       196.51     195.86     246.21     141.26     183.97     190.28
------------------------------------------------------------------------------------------------------------------------------

<CAPTION>

                                                                                                           2003
------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SUMMARY                                              Qtr1       Qtr2       Qtr3       Qtr4       2003       Qtr1
                                                                                                            Y
<S>                                                         <C>        <C>        <C>        <C>        <C>        <C>
ORE TONNES MINED                                               746        848        625        934       3,153       857
ORE GRADE                                                      7.85       6.43      11.25       8.57       8.36       6.49

RECOVERY EFFICIENCY                                           92.27%     92.09%     92.26%     92.20%     92.20%     94.76%

Gold Production                                              187,769    180,644    187,306    184,838    740,557    200,587

Gold Price - Spot                                              250        250        250        250        250        250
Gold Price - Hedged                                            275        275        275        275        275        275

Mining Costs                                                   7.76       8.11       5.48       8.83      30.17       9.63
Plant Costs                                                    3.00       2.86       2.88       2.86      11.60       3.21
General & Administration (incl Fees)                           7.19       6.80       6.83       6.82      27.64       7.43
Power plant costs                                              0.72       0.72       0.72       0.72       2.88       0.64
OPERATING COSTS                                               18.67      18.48      15.90      19.23      72.29      20.92

SENSITIVITY ADJUSTMENT                                         100%       100%       100%       100%       100%       100%
TOTAL OPERATING COSTS                                         18.67      18.48      15.90      19.23      72.29      20.92

CAPITAL EXPENDITURE                                            0.72       0.72       0.72       0.72       2.88       0.82
WORKING CAPITAL IN CONSTRUCTION PERIOD                         0.00       0.00       0.00       0.00       0.00       0.00

TOTAL REVENUE                                                 47.89      46.11      47.77      47.16      188.93     50.96

ROYALTY PAID                                                   2.87       2.76       2.86       2.82      11.32       3.05
TAX PAYABLE                                                    0.00       0.00       0.00       0.00       0.00       0.00

FINANCE & LEGAL COSTS                                          0.00       0.00       0.00       0.00       0.00       0.00
POLITICAL RISK INSURANCE                                       0.13       0.12       0.09       0.09       0.42       0.06

PROJECT CASHFLOW BEFORE FINANCING (INTEREST ETC)              25.50      24.02      28.20      24.29      102.02     26.11

FINANCIAL SUMMARY                                                                                          2003

Debt Contribution                                              0.00       0.00       0.00       0.00       0.00       0.00
Equity Contribution / Shareholder loans                        0.00       0.00       0.00       0.00       0.00       0.00
Net Cash Flow                                                 25.50      24.02      28.20      24.29      102.02     26.11

NPV OF CASH FLOW, LOAN LIFE                                   190.79     169.44     149.11     124.15     184.12     102.57
NPV OF CASH FLOW, PROJECT LIFE                                249.71     228.72     208.76     184.19     238.73     162.99
Loan Outstanding Start of Period                              39.96      36.00      27.00      27.00      39.96      18.00
Loan Outstanding End of Period                                39.96      27.00      27.00      18.00      21.96      18.00
LOAN LIFE RATIO                                                5.04       4.99       5.89       4.96       4.87       6.23
PROJECT LIFE RATIO                                             6.51       6.64       8.10       7.19       6.24       9.59
Scheduled Repayments                                                      9.00                  9.00      18.00
Interest Payments                                              0.80       0.63       0.54       0.45       2.48       0.36
Total Debt Service                                             0.80       9.63       0.54       9.45      20.48       0.36
Net Cash Flow less Debt Service                               24.70      14.39      27.66      14.84      81.54      25.75

6 Months Debt Service Reserve Account Contribution            (0.26)     (0.18)     (0.18)     (0.18)     (0.80)     (0.18)
6 Months Debt Service Reserve Account Opening Balance         10.43      10.17       9.99       9.81      10.43       9.63
6 Months Debt Service Reserve Account Closing Balance         10.17       9.99       9.81       9.63       9.63       9.45

NET CASH FLOW AFTER FINANCE                                   24.96      14.57      27.84      15.02      82.34      25.93
CASH OPENING BALANCE                                          10.00      10.00      10.00      10.00      10.00      10.00
MINIMUM WORKING CAPITAL IN PROJECT                            10.00      10.00      10.00      10.00      10.00      10.00
CASH AVAILABLE FOR DISTRIBUTION / SWEEPS                      24.96      14.57      27.84      15.02      82.34      25.93

Bank prepayment - 20% of NCF after finance                     4.99       2.91       5.57       3.00      16.48       5.19
Bank prepayment - capped at one year                           4.99       2.91       5.57       3.00      16.48       5.19
Bank prepayment - quarterly                                    3.96       0.00       0.00       0.00                  0.00
CASH SWEEP - (QUARTERLY) TO BANKS                              3.96       0.00       0.00       0.00       3.96       0.00
AGREED PAYMENT TO SHAREHOLDERS                                 0.00       0.00       0.00       0.00       0.00       0.00

CASH FLOW ATTRIBUTABLE TO PROJECT OR SPONSORS                 21.00      14.57      27.84      15.02      78.38      25.93
CASH FLOW DISTRIBUTED TO PROJECT OR SPONSORS                  21.00      14.57      27.84      15.02      78.38      25.93
CASH CLOSING BALANCE                                           0.00       0.00       0.00       0.00       0.00       0.00

REMAINING RESERVES (OZ'S)                                   3,087,217  2,906,573  2,719,267  2,534,429  2,534,429  2,333,842
REMAINING RESERVES / PERIOD 1 RESERVES                         67%        63%        59%        55%        55%        50%
NET CASH FLOW / DEBT SERVICE                                  3191%       249%      5222%       257%       498%      7253%

CASH COST / OZ (OPEX ONLY)                                    99.42      102.33     84.91      104.05     97.62      104.28

TOTAL COST/OZ (INCL. TAXES,PRI,WORKING CAP,DEBT SERVICE)      123.48     175.56     107.38     174.83     145.01     125.67
------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
                                                                                                2004
------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>        <C>        <C>        <C>        <C>        <C>
FINANCIAL SUMMARY                                              Qtr2       Qtr3       Qtr4       2004       Qtr1       Qtr2
                                                                                                 Y
ORE TONNES MINED                                               858        823        910       3,449       912        794
ORE GRADE                                                      5.08       4.52       5.06       5.29       4.44       4.83

RECOVERY EFFICIENCY                                           94.38%     93.18%     93.19%     94.00%     92.59%     92.61%

Gold Production                                              180,240    132,454    132,799    646,081    115,516    115,984

Gold Price - Spot                                              250        250        250        250        250        250
Gold Price - Hedged                                            275        275        275        275         0          0

Mining Costs                                                   8.75       6.00       8.38      32.76       6.38       4.89
Plant Costs                                                    3.07       3.09       3.08      12.45       3.21       3.07
General & Administration (incl Fees)                           7.00       6.86       6.86      28.14       7.15       6.79
Power plant costs                                              0.64       0.64       0.64       2.57       0.56       0.56
OPERATING COSTS                                               19.47      16.59      18.96      75.93      17.30      15.31

SENSITIVITY ADJUSTMENT                                         100%       100%       100%       100%       100%       100%
TOTAL OPERATING COSTS                                         19.47      16.59      18.96      75.93      17.30      15.31

CAPITAL EXPENDITURE                                            0.82       0.82       0.82       3.28       0.82       0.82
WORKING CAPITAL IN CONSTRUCTION PERIOD                         0.00       0.00       0.00       0.00       0.00       0.00

TOTAL REVENUE                                                 45.87      33.93      34.01      164.77     28.88      29.00

ROYALTY PAID                                                   2.75       2.03       2.04       9.87       1.73       1.74
TAX PAYABLE                                                    0.00       0.00       0.00       0.00       0.00       0.00

FINANCE & LEGAL COSTS                                          0.00       0.00       0.00       0.00       0.00       0.00
POLITICAL RISK INSURANCE                                       0.06       0.03       0.03       0.18       0.00       0.00

PROJECT CASHFLOW BEFORE FINANCING (INTEREST ETC)              22.78      14.46      12.17      75.51       9.03      11.13

FINANCIAL SUMMARY                                                                               2004

Debt Contribution                                              0.00       0.00       0.00       0.00       0.00       0.00
Equity Contribution / Shareholder loans                        0.00       0.00       0.00       0.00       0.00       0.00
Net Cash Flow                                                 22.78      14.46      12.17      75.51       9.03      11.13

NPV OF CASH FLOW, LOAN LIFE                                   78.69      57.63      44.42      98.68      33.22      24.92
NPV OF CASH FLOW, PROJECT LIFE                                139.51     118.86     106.07     158.20     95.29      87.42
Loan Outstanding Start of Period                              18.00       9.00       9.00      18.00       0.00       0.00
Loan Outstanding End of Period                                 9.00       9.00       0.00       0.00       0.00       0.00
LOAN LIFE RATIO                                                4.90       7.43       5.95       6.02       n.a.       n.a.
PROJECT LIFE RATIO                                             8.28      14.24      12.80       9.32       n.a.       n.a.
Scheduled Repayments                                           9.00                  9.00      18.00                  0.00
Interest Payments                                              0.27       0.18       0.09       0.72       0.00       0.00
Total Debt Service                                             9.27       0.18       9.09      18.72       0.00       0.00
Net Cash Flow less Debt Service                               13.51      14.28       3.08      56.79       9.03      11.13

6 Months Debt Service Reserve Account Contribution            (0.18)     (0.18)     (9.09)     (9.63)      0.00       0.00
6 Months Debt Service Reserve Account Opening Balance          9.45       9.27       9.09       9.63       0.00       0.00
6 Months Debt Service Reserve Account Closing Balance          9.27       9.09       0.00       0.00       0.00       0.00

NET CASH FLOW AFTER FINANCE                                   13.69      14.46      12.17      66.42       9.03      11.13
CASH OPENING BALANCE                                          10.00      10.00      10.00      10.00      10.00      10.00
MINIMUM WORKING CAPITAL IN PROJECT                            10.00      10.00      10.00      10.00      10.00      10.00
CASH AVAILABLE FOR DISTRIBUTION / SWEEPS                      13.69      14.46      12.17      66.42       9.03      11.13

Bank prepayment - 20% of NCF after finance                     2.74       2.89       2.43      13.25       1.81       2.23
Bank prepayment - capped at one year                           2.74       2.89       0.00       0.00       0.00       0.00
Bank prepayment - quarterly                                    0.00       0.00       0.00                  0.00       0.00
CASH SWEEP - (QUARTERLY) TO BANKS                              0.00       0.00       0.00       0.00       0.00       0.00
AGREED PAYMENT TO SHAREHOLDERS                                 0.00       0.00       0.00       0.00

CASH FLOW ATTRIBUTABLE TO PROJECT OR SPONSORS                 13.69      14.46      12.17      66.42       9.03      11.13
CASH FLOW DISTRIBUTED TO PROJECT OR SPONSORS                  13.69      14.46      12.17      66.42       9.03      11.13
CASH CLOSING BALANCE                                           0.00       0.00       0.00       0.00       0.00       0.00

REMAINING RESERVES (OZ'S)                                   2,153,601  2,021,147  1,888,349  1,888,349  1,772,832  1,656,849
REMAINING RESERVES / PERIOD 1 RESERVES                         47%        44%        41%        41%        38%        36%
NET CASH FLOW / DEBT SERVICE                                   246%      8032%       n.a.       n.a.       n.a.       n.a.

CASH COST / OZ (OPEX ONLY)                                    108.01     125.22     142.76     117.52     149.77     132.00

TOTAL COST/OZ (INCL. TAXES,PRI,WORKING CAP,DEBT SERVICE)      179.56     148.33     232.95     167.12     171.81     154.02
------------------------------------------------------------------------------------------------------------------------------

<CAPTION>
                                                                                      2005
----------------------------------------------------------------------------------------------
<S>                                                          <C>        <C>        <C>
FINANCIAL SUMMARY                                               Qtr3       Qtr4       2005
                                                                                       Y
ORE TONNES MINED                                                716        858       3,280
ORE GRADE                                                       4.52       4.24       4.50

RECOVERY EFFICIENCY                                            92.03%     92.20%     92.37%

Gold Production                                               102,280    105,989    439,769

Gold Price - Spot                                               250        250        250
Gold Price - Hedged                                              0          0          0

Mining Costs                                                    3.99       4.63      19.90
Plant Costs                                                     3.09       3.08      12.45
General & Administration (incl Fees)                            6.75       6.76      27.45
Power plant costs                                               0.56       0.56       2.23
OPERATING COSTS                                                14.39      15.03      62.04

SENSITIVITY ADJUSTMENT                                          100%       100%       100%
TOTAL OPERATING COSTS                                          14.39      15.03      62.04

CAPITAL EXPENDITURE                                             0.82       0.82       3.27
WORKING CAPITAL IN CONSTRUCTION PERIOD                          0.00       0.00       0.00

TOTAL REVENUE                                                  25.57      26.50      109.94

ROYALTY PAID                                                    1.53       1.59       6.58
TAX PAYABLE                                                     0.00       3.12       3.12

FINANCE & LEGAL COSTS                                           0.00       0.00       0.00
POLITICAL RISK INSURANCE                                        0.00       0.00       0.00

PROJECT CASHFLOW BEFORE FINANCING (INTEREST ETC)                8.83       5.94      34.93

FINANCIAL SUMMARY                                                                     2005

Debt Contribution                                               0.00       0.00       0.00
Equity Contribution / Shareholder loans                         0.00       0.00       0.00
Net Cash Flow                                                   8.83       5.94      34.93

NPV OF CASH FLOW, LOAN LIFE                                    14.33       5.81      32.05
NPV OF CASH FLOW, PROJECT LIFE                                 77.27      69.21      96.93
Loan Outstanding Start of Period                                0.00       0.00       0.00
Loan Outstanding End of Period                                  0.00       0.00       0.00
LOAN LIFE RATIO                                                 n.a.       n.a.       n.a.
PROJECT LIFE RATIO                                              n.a.       n.a.       n.a.
Scheduled Repayments                                                       0.00       0.00
Interest Payments                                               0.00       0.00       0.00
Total Debt Service                                              0.00       0.00       0.00
Net Cash Flow less Debt Service                                 8.83       5.94      34.93

6 Months Debt Service Reserve Account Contribution              0.00       0.00       0.00
6 Months Debt Service Reserve Account Opening Balance           0.00       0.00       0.00
6 Months Debt Service Reserve Account Closing Balance           0.00       0.00       0.00

NET CASH FLOW AFTER FINANCE                                     8.83       5.94      34.93
CASH OPENING BALANCE                                           10.00      10.00      10.00
MINIMUM WORKING CAPITAL IN PROJECT                             10.00      10.00      10.00
CASH AVAILABLE FOR DISTRIBUTION / SWEEPS                        8.83       5.94      34.93

Bank prepayment - 20% of NCF after finance                      1.77       1.19       6.99
Bank prepayment - capped at one year                            0.00       0.00       0.00
Bank prepayment - quarterly                                     0.00       0.00
CASH SWEEP - (QUARTERLY) TO BANKS                               0.00       0.00       0.00
AGREED PAYMENT TO SHAREHOLDERS                                                        0.00

CASH FLOW ATTRIBUTABLE TO PROJECT OR SPONSORS                   8.83       5.94      34.93
CASH FLOW DISTRIBUTED TO PROJECT OR SPONSORS                    8.83       5.94      34.93
CASH CLOSING BALANCE                                            0.00       0.00       0.00

Remaining Reserves (oz's)                                    1,554,569  1,448,580  1,448,580
REMAINING RESERVES / PERIOD 1 RESERVES                          34%        31%        31%
NET CASH FLOW / DEBT SERVICE                                    n.a.       n.a.       n.a.

CASH COST / OZ (OPEX ONLY)                                     140.73     141.82     141.06

TOTAL COST/OZ (INCL. TAXES,PRI,WORKING CAP,DEBT SERVICE)       163.69     193.98     170.57
----------------------------------------------------------------------------------------------
</TABLE>

**   represents for greater than

**** represents for greater than or equal to

<PAGE>

MORILA GOLD PROJECT
DATA AUDITED BY SRK APRIL 2001

<TABLE>
<CAPTION>
                                                                                                                        2006
------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SUMMARY                                                           Qtr1       Qtr2       Qtr3       Qtr4       2006
<S>                                                       <C>            <C>        <C>        <C>        <C>        <C>
                                                                                                                         Y
ORE TONNES MINED                                          tonnes '000's     819        825        882        854       3,380
ORE GRADE                                                      g/t          4.54       4.22       4.03       3.97       4.19

RECOVERY EFFICIENCY                                             %          92.40%     92.08%     92.02%     91.85%     92.10%

Gold Production                                                 oz        110,811    103,253    101,893     98,534    414,491

Gold Price - Spot                                             US$/oz        250        250        250        250        250
Gold Price - Hedged                                            ozs           0          0          0          0          0

Mining Costs                                                   US$m         4.69       4.70       3.22       4.23      16.85
Plant Costs                                                    US$m         3.21       3.07       3.09       3.08      12.45
General & Administration (incl Fees)                           US$m         7.14       6.75       6.75       6.74      27.37
Power plant costs                                              US$m         0.47       0.47       0.47       0.47       1.88
OPERATING COSTS                                                US$m        15.51      14.99      13.53      14.51      58.55

SENSITIVITY ADJUSTMENT                                         100%         100%       100%       100%       100%       100%
TOTAL OPERATING COSTS                                          US$m        15.51      14.99      13.53      14.51      58.55

CAPITAL EXPENDITURE                                            US$m         0.94       0.94       0.94       0.94       3.75
WORKING CAPITAL IN CONSTRUCTION PERIOD                         US$m         0.00       0.00       0.00       0.00       0.00

TOTAL REVENUE                                                  US$m        27.70      25.81      25.47      24.63      103.62

ROYALTY PAID                                                   US$m         1.66       1.55       1.53       1.48       6.21
TAX PAYABLE                                                    US$m         3.35       2.91       3.31       2.69      12.27

FINANCE & LEGAL COSTS                                          US$m         0.00       0.00       0.00       0.00       0.00
POLITICAL RISK INSURANCE                                       1.30%        0.00       0.00       0.00       0.00       0.00

PROJECT CASHFLOW BEFORE FINANCING (INTEREST ETC)               US$m         6.24       5.43       6.17       5.02      22.85

FINANCIAL SUMMARY                                                                                                       2006

Debt Contribution                                              US$m         0.00       0.00       0.00       0.00       0.00
Equity Contribution / Shareholder loans                        US$m         0.00       0.00       0.00       0.00       0.00
Net Cash Flow                                                  US$m         6.24       5.43       6.17       5.02      22.85

NPV OF CASH FLOW, LOAN LIFE                                    9.00%
NPV OF CASH FLOW, PROJECT LIFE                                 9.00%
Loan Outstanding Start of Period                               US$m
Loan Outstanding End of Period                                 US$m
LOAN LIFE RATIO                                               **1.5
PROJECT LIFE RATIO                                            **1.8
Scheduled Repayments                                           US$m
Interest Payments                                              8.00%
Total Debt Service                                             US$m
Net Cash Flow less Debt Service                                US$m                                                    22.85

6 Months Debt Service Reserve Account Contribution             US$m
6 Months Debt Service Reserve Account Opening Balance          US$m
6 Months Debt Service Reserve Account Closing Balance          US$m

NET CASH FLOW AFTER FINANCE                                    US$m                                                    22.85
CASH OPENING BALANCE
MINIMUM WORKING CAPITAL IN PROJECT                             US$m
CASH AVAILABLE FOR DISTRIBUTION / SWEEPS

Bank prepayment - 20% of NCF after finance                    20.0%
Bank prepayment - capped at one year                          20.0%
Bank prepayment - quarterly
CASH SWEEP - (QUARTERLY) TO BANKS                             20.0%
AGREED PAYMENT TO SHAREHOLDERS                                 US$m

CASH FLOW ATTRIBUTABLE TO PROJECT OR SPONSORS                  US$m         6.24       5.43       6.17       5.02      22.85
CASH FLOW DISTRIBUTED TO PROJECT OR SPONSORS                   100%         6.24       5.43       6.17       5.02      22.85
CASH CLOSING BALANCE                                           US$m         0.00       0.00       0.00       0.00       0.00

REMAINING RESERVES (OZ'S)                                   4,628,102    1,337,769  1,234,516  1,132,623  1,034,089  1,034,089
REMAINING RESERVES / PERIOD 1 RESERVES                       ****30%         29%        27%        24%        22%        22%
NET CASH FLOW / DEBT SERVICE                                ****130%        n.a.       n.a.       n.a.       n.a.

CASH COST / OZ (OPEX ONLY)                                    US$/oz       139.98     145.17     132.81     147.29     141.25

TOTAL COST/OZ (INCL. TAXES,PRI,WORKING CAP,DEBT SERVICE)      US$/oz       193.67     197.44     189.48     199.10     194.87

<CAPTION>
                                                              2007          2008        2009      2010       2011
------------------------------------------------------------------------------------------------------------------------------
<S>                                                         <C>           <C>         <C>        <C>        <C>      <C>
FINANCIAL SUMMARY                                             2007          2008        2009      2010       2011      Total
                                                               Y             Y           Y          Y         Y
ORE TONNES MINED                                             3,518         3,163       1,338        0         0        28,141
ORE GRADE                                                     4.14          3.97        4.86      0.00       0.00       5.57

RECOVERY EFFICIENCY                                          92.15%        91.66%      91.58%     0.00%     0.00%      91.75%

Gold Production                                             418,496       378,543     237,050       0         0      4,628,102

Gold Price - Spot                                             250           250         250        250       250
Gold Price - Hedged                                            0             0           0          0         0

Mining Costs                                                 15.97         15.48        9.15      0.00       0.00      201.29
Plant Costs                                                  12.45         12.45        9.14      0.00       0.00      107.83
General & Administration (incl Fees)                         27.38         27.26       23.64      2.35       0.00      249.80
Power plant costs                                             1.44          0.96        0.51      0.00       0.00      19.25
OPERATING COSTS                                              57.24         56.15       42.43      2.35       0.00      578.17

SENSITIVITY ADJUSTMENT                                        100%          100%        100%      100%       100%
TOTAL OPERATING COSTS                                        57.24         56.15       42.43      2.35       0.00      578.17

CAPITAL EXPENDITURE                                           3.33          3.11        2.26      0.50       0.00      147.41
WORKING CAPITAL IN CONSTRUCTION PERIOD                        0.00          0.00        0.00      0.00       0.00      20.00

TOTAL REVENUE                                                104.62        94.64       59.26      0.00       0.00     1,174.53

ROYALTY PAID                                                  6.27          5.67        3.55      0.00       0.00      67.86
TAX PAYABLE                                                   8.25          4.76        0.44      0.00       0.00      28.85

FINANCE & LEGAL COSTS                                         0.00          0.00        0.00      0.00       0.00       2.00
POLITICAL RISK INSURANCE                                                                                                3.55

PROJECT CASHFLOW BEFORE FINANCING (INTEREST ETC)             29.54         24.94       10.58     (2.85)      0.00      326.70

FINANCIAL SUMMARY                                             2007          2008        2009      2010       2011      Total

Debt Contribution                                             0.00          0.00        0.00      0.00       0.00      90.00
Equity Contribution / Shareholder loans                       0.00          0.00        0.00      0.00       0.00      30.00
Net Cash Flow                                                29.54         24.94       10.58     (2.85)      0.00      446.70

NPV OF CASH FLOW, LOAN LIFE
NPV OF CASH FLOW, PROJECT LIFE
Loan Outstanding Start of Period
Loan Outstanding End of Period
Loan Life Ratio
Project Life Ratio
Scheduled Repayments                                                                                                   72.00
Interest Payments                                                                                                      19.35
Total Debt Service                                                                                                     91.35
Net Cash Flow less Debt Service                              29.54         24.94       10.58     (2.85)      0.00      355.35

6 Months Debt Service Reserve Account Contribution
6 Months Debt Service Reserve Account Opening Balance
6 Months Debt Service Reserve Account Closing Balance

NET CASH FLOW AFTER FINANCE                                  29.54         24.94       10.58     (2.85)      0.00      355.35
CASH OPENING BALANCE
MINIMUM WORKING CAPITAL IN PROJECT
CASH AVAILABLE FOR DISTRIBUTION / SWEEPS

Bank prepayment - 20% of NCF after finance
Bank prepayment - capped at one year
Bank prepayment - quarterly
CASH SWEEP - (QUARTERLY) TO BANKS                                                                                      18.00
AGREED PAYMENT TO SHAREHOLDERS                                                                                         17.00

CASH FLOW ATTRIBUTABLE TO PROJECT OR SPONSORS                29.54         24.94       10.58     (2.85)      0.00      625.67
CASH FLOW DISTRIBUTED TO PROJECT OR SPONSORS                 29.54         24.94       10.58      0.00       0.00
CASH CLOSING BALANCE                                          0.00          0.00        0.00     (2.85)      0.00

REMAINING RESERVES (OZ'S)                                   615,593       237,050        0          0         0
REMAINING RESERVES / PERIOD 1 RESERVES                        13%            5%          0%        0%         0%
NET CASH FLOW / DEBT SERVICE

CASH COST / OZ (OPEX ONLY)                                   136.78        148.34      179.01     n.a.       n.a.      124.42

TOTAL COST/OZ (INCL. TAXES, PRI, WORKING CAP, DEBT SERVICE)  179.42        184.10      205.38     n.a.       n.a.      197.99
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

**   represents for greater than

**** represents for greater than or equal to

<PAGE>

                                   SCHEDULE 3

                                 HEDGING POLICY

Under Clauses 8.1.10 and 9.1.7 of the Loan Agreement, the Borrower (and, at any
time prior to the Release Date, each of Morila Holdings and RRL) is required to
ensure that all Hedging Obligations arising in connection with the Morila
Project comply, and are consistent with, the terms and conditions of the
Hedging Policy. The following constitutes the Hedging Policy in connection with
the Morila Project.

1.       HEDGING STRUCTURE

Any one of the corporate entities referenced in the first sentence of Clause
8.1.10 of the Loan Agreement (each such entity referred to as a "Hedging
Counterparty") shall enter into one or more transactions from time to time in
order to hedge the Borrower's exposure to gold prices and to provide the Morila
Project with long term protection from adverse movements in the gold price (the
"Hedging Transactions"). Each Hedging Counterparty shall implement the
Hedging Transactions pursuant to a 1992 ISDA Master Agreement (Multicurrency -
Cross Border) to be entered into by it with each of Standard Bank London
Limited, N M Rothschild & Sons Limited and Societe Generale (including any
of their affiliates) or any of the other Lenders from time to time (or any of
their affiliates) (each a "Hedging Agreements", collectively the "Hedging
Agreements"). If a Hedging Counterparty is an entity other than the Borrower
the benefit of the relevant Hedging Agreement will be assigned by such Hedging
Counterparty to the Borrower.

The Hedging Agreements will be governed by the laws of England and will be
entered into in accordance with the terms of the Loan Agreement. Where there is
any inconsistency between the terms of the Loan Agreement and this Hedging
Policy, or the terms of any of the Hedging Agreements and this Hedging Policy,
the terms of the Loan Agreement or the Hedging Agreements (as the case may be)
shall prevail.

2.       DAY-TO-DAY MANAGEMENT OF HEDGING TRANSACTIONS

The Hedging Transactions entered into by each Hedging Counterparty will be
managed and co-ordinated by AngloGold, acting upon the instructions of the
Borrower.

3.       MARK TO MARKET EXPOSURE

Each Hedging Counterparty shall supply to the Agent (with a copy for each
Lender) within seven (7) days after the end of each Fiscal Quarter, in form and
substance satisfactory to the Agent, a hedging activity report. Such report
shall be signed by an Authorised Representative of the Hedging Counterparty and
shall set out details of the hedging activity during the course of the previous
quarter, together with a statement showing the Hedging Transactions entered
into by such Hedging Counterparty at the end of such Fiscal Quarter.

4.       LEVELS OF PROTECTION AND COMMITMENT

         (a)    At any date, the aggregate number of ounces of Gold produced or
                to be produced at the Morila Project and required to be
                delivered during the Project Period under all Committed Hedging
                Agreements in effect on such date shall

<PAGE>

                not exceed an amount equal to seventy percent (70%) of Proven
                and Probable Reserves as at such date.

         (b)    At any date, the aggregate number of ounces of Gold produced or
                to be produced at the Morila Project and required to be
                delivered during the twelve (12) month period commencing on
                such date under all Committed Hedging Agreements in effect on
                such date shall not exceed an amount equal to seventy percent
                (70%) of the then scheduled Production for such twelve (12)
                month period.

5.       PERMITTED HEDGING TRANSACTIONS

The following shall also apply in respect of Hedging Transactions:

         (a)    Hedging Transactions in relation to Gold are to be limited to
                forward sales and european or monthly asian style vanilla put
                and call options.

         (b)    Sales of call options will be accounted for on a notional basis
                (not on a delta basis).

         (c)    The exposure of all Hedging Counterparties to gold lease rates
                in connection with the Morila Project shall not exceed 40% of
                the total ounces related to Committed Hedging Agreements. A
                minimum assumption of 2% p.a. will be made for gold lease rate
                rollovers in respect of floating lease rate contracts.

         (d)    Hedging Transactions will be denominated in U.S.$.

6.       OTHER RESTRICTIONS

         (a)    All hedging in respect of Production from the Morila Project
                will be undertaken solely by the Hedging Counterparties.

         (b)    The Hedging Counterparties will not, in connection with the
                Morila Project, enter into any purchase, sale, swap option,
                spot, forward or other transaction involving Gold or any other
                transaction involving commodities, currencies or interest rates
                other than:

                (i)    as specified in the definition of the term "Committed
                       Hedging Agreements" in the Loan Agreement; or

                (ii)   as specified in the Refining Agreement.

         (c)    The Hedging Counterparties will not undertake Hedging
                Transactions of a speculative nature.

7.       COUNTERPARTIES

         (a)    In connection with the Morila Project, the Hedging
                Counterparties will only enter into Hedging Transactions with
                the Arrangers and/or the Co-Arrangers (or any of their
                affiliates) (each referred to as a "Hedging Bank"). In the
                event that a Hedging Bank ceases to act in its capacity as a
                Lender, any Hedging Transactions that are outstanding at such
                time with such Hedging Bank shall

<PAGE>

                continue and mature on their designated maturity date. The
                Hedging Counterparty will not enter into any further Hedging
                Transactions in connection with the Morila Project with such
                Hedging Bank after such date.

         (b)    The number of ounces of Gold hedged with any Hedging Bank in
                connection with the Morila Project will, to the extent
                practicable, broadly reflect a pro rata proportion of the total
                hedge, and will be linked to each Hedging Bank's Commitment
                under the Loan Agreement (in its capacity as a Lender) at the
                time the relevant Hedging Agreements are put in place, subject
                to a test of reasonable price competitiveness.

8.        ASSIGNMENT OF EXISTING TRANSACTIONS BY ANGLOGOLD AND RRL

Each of AngloGold and RRL may transfer to another Hedging Counterparty only
those outstanding hedging transactions that have been entered into (i) between
AngloGold or RRL and any of the Lenders and (ii) in relation to the Morila
Project.

<PAGE>

                                  SCHEDULE 4

               FORM OF EXCESS CASH FLOW CALCULATION CERTIFICATE

                                                                   [__], 200[__]

N M Rothschild & Sons Limited,
as the Agent
under the Loan Agreement
referred to below and each of
the other Lender Parties from
time to time party to such
Loan Agreement
c/o N M Rothschild & Sons Limited
New Court
St. Swithin's Lane
London EC4P 4DU
England

Attention: David Street/George Pyper

RE:     MORILA LOAN AGREEMENT

Dear Sirs

This Excess Cash Flow Calculation Certificate (this "Certificate") is
delivered to you pursuant to the first proviso to Clause 8.2.7 of the Loan
Agreement, dated 21 December, 1999 (as amended pursuant to the Letter
Agreement, dated 10 April, 2000 and the Supplemental Agreement, dated [__],
2001, and as further amended, modified or supplemented from time to time, the
"LOAN AGREEMENT") among (1) Societe des Mines de Morila S.A., as the
Borrower, (2) Randgold Resources Limited, Randgold & Exploration Company
Limited and Morila Limited, as the Completion Guarantors, (3) various banks and
financial institutions, as the Lenders and the Co-Arrangers, (4) Standard Bank
London Limited and N M Rothschild & Sons Limited, as the Arrangers and (5) N M
Rothschild & Sons Limited, as the Agent for the Lenders. Unless otherwise
defined herein or the context otherwise requires, terms used herein have the
meanings provided in, and shall be interpreted in accordance with, the Loan
Agreement.

The Borrower hereby certifies, represents and warrants to the Agent and each
other Lender Party as follows:

<TABLE>
<S>     <C>                                                    <C>
1       Total Cash Balances in the Morila Project(9) as at the
        first day of the Cash Sweep Calculation Period         U.S.$ __________

2       Total Revenues from Production during the Cash Sweep
        Calculation Period(10)                                 U.S.$ __________
</TABLE>

________________________________________

(9)     Total amount of funds in the Project Accounts (Offshore) and Project
        Account (Mali).

                                     -124-

<PAGE>

<TABLE>
<S>     <C>                                                    <C>
3       Project Capital Costs paid during the Cash Sweep
        Calculation Period                                     U.S.$ ________

4       Project Operating Costs paid during the Cash
        Sweep Calculation Period                               U.S.$ ________

5       Total Cash Balances in the Project on the last day
        of the Cash Sweep Calculation Period(11)               U.S.$ ________

6       Project Costs scheduled to be paid during the three
        months following the Cash Sweep Calculation Period     U.S.$ ________

7       Total Cash Balances in the Debt Service Reserve
        Account on the last day of the Cash Sweep
        Calculation Period                                     U.S.$_________

8       Cash available for Distributions(12)

        20% to the Lenders:               U.S.$ _______
        80% to the Sponsors:              U.S.$ _______        U.S.$ ________
</TABLE>

IN WITNESS WHEREOF, the Borrower has caused this Certificate to be executed and
delivered by a senior financial Authorised Representative this day of [__],
200[__]

SOCIETE DES MINES DE MORILA     )
S.A., as the Borrower           )
by:                                            ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

___________________________________

(10)    Total Production expressed in Dollars as calculated (i) in the case of
        any such ounces of Gold which are covered by a Hedging Agreement in
        effect during the Cash Sweep Calculation Period, at the price for
        delivery of Gold specified in such Hedging Agreement (or, if no price
        other than a floor price for delivery of Gold is specified in such
        Hedging Agreement, the minimum price for delivery of Gold referred to
        therein) and (ii) in the case of all other such ounces of Gold at the
        average London Gold Price for the Cash Sweep Calculation Period

(11)    Item 1 plus Item 2 minus Item 3 minus Item 4

(12)    Item 5 minus Item 6 minus Item 7

                                     -125-

<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorised as of the day
and year first above written.

THE OBLIGORS:

SOCIETE DES MINES DE MORILA       )
S.A., as the Borrower             )
by:                                            ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:    c/o AngloGold Limited
                        PO Box 62117
                        14th Floor, 11 Diagonal Street
                        Marshalltown
                        Johannesburg 2001
                        South Africa

Facsimile No.:          +27 11 637 6677

Attention:              Company Secretary, Mr. CR Bull

                                     -126-

<PAGE>

RANDGOLD RESOURCES LIMITED,       )
as a Completion Guarantor         )
by:                                            ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:     c/o 5 Press Avenue
                         Selby
                         Johannesburg
                         P.O. Box 82291
                         Southdale 2135
                         South Africa

Facsimile No.:           +27-11-8372232

Attention:               The Financial Director

                                     -127-

<PAGE>

[RANDGOLD & EXPLORATION           )
COMPANY LIMITED, as a Completion  )            ______________________________
Guarantor                                      Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      c/o 5 Press Avenue
                          Selby
                          Johannesburg
                          P.O. Box 82291
                          Southdale 2135
                          South Africa

Facsimile No.:            +27-11-8372232

Attention:                The Financial Director](13)

___________________________

(13)     Released from its obligations pursuant to the Supplemental Agreement.

                                     -128-

<PAGE>

MORILA LIMITED(14) as a Completion   )
Guarantor by:                        )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:     c/o AngloGold Limited
                         PO Box 62117
                         14th Floor, 11 Diagonal Street
                         Marshalltown
                         Johannesburg 2001
                         South Africa

Facsimile No.:           +27 11 637 6677

Attention:               Company Secretary, Mr. CR Bull

_______________________________

(14)     Previously called Randgold Resources (Morila) Limited.

                                     -129-

<PAGE>

THE LENDERS:

Commitment Amount: U.S.$15,000,000

per pro N M ROTHSCHILD & SONS        )
LIMITED by:                          )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:     New Court
                         St. Swithin's Lane
                         London
                         EC4P 4DU

Facsimile No.:           +44 20 7280 5139

Attention:               David Street/George Pyper

                                     -130-

<PAGE>

Commitment Amount: U.S.$15,000,000

BAYERISCHE HYPO-UND                  )
VEREINSBANK AG by:                   )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:     41 Moorgate
                         London EC2R 6PP

Facsimile No.:           +44 207 638 1710/1712

Attention:               Geoffrey Oates/Martin Self

                                     -131-

<PAGE>

Commitment Amount: U.S.$15,000,000

[FORTIS BANK (NEDERLAND)             )
N.V.](15) by:                        )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      Coolsingel 93
                          P.O. Box 749
                          3000 AS Rotterdam

Facsimile No.:            +31 10 401 6433

Attention:                Peter Boogers/Juultje van der Wijk

_______________________________________

(15)     Previously called Mees Pierson N.V.

                                     -132-

<PAGE>

Commitment Amount: U.S.$15,000,000

SAMPO BANK PLC(16) by:                )
                                      )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      Etelaesplanadi 8
                          FIN 00007 Helsinski
                          Finland

Facsimile No.:            +358 204 25 7344

Attention:                Export and Project Finance

__________________________________

(16)     Acquired interest from Sampo Bank plc (previously called Leonia
         Corporate Bank plc). Sampo Bank plc was not an original signatory to
         the Agreement and was added as an additional Lender pursuant to the
         Letter Agreement. Transferred its interest under the Loan Agreement to
         Standard Bank London Limited.

                                     -133-

<PAGE>

Commitment Amount: U.S.$15,000,000

SOCIETE GENERALE by:                )
                                    )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:    SG House
                        41 Tower Hill
                        London EC3N 4SG

Facsimile No.:          +44 207 667 2489

Attention:              Judith Moseley/Peter Donkin

                                     -134-

<PAGE>

Commitment Amount:
U.S.$30,000,000(17)

STANDARD BANK LONDON                )
LIMITED by:                         )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      25 Dowgate Hill
                          Cannon Bridge House
                          London EC4R 2SB

Facsimile No.:            +44 207-815-4284

Attention:                David Rhodes

__________________________________

(17)     Sampo Bank plc has transferred its interest under the Loan Agreement
         to Standard Bank London Limited.

                                     -135-

<PAGE>

THE ARRANGERS

per pro N M ROTHSCHILD & SONS       )
LIMITED by:                         )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      New Court
                          St. Swithin's Lane
                          London
                          EC4P 4DU

Facsimile No.:            +44 207-280-5139

Attention:                David Street/George Pyper

                                     -136-

<PAGE>

STANDARD BANK LONDON                )
LIMITED by:                         )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      25 Dowgate Hill
                          Cannon Bridge House
                          London EC4R 2SB

Facsimile No.:            +44 207-815-4284

Attention:                David Rhodes

                                     -137-

<PAGE>

THE CO-ARRANGERS

BAYERISCHE HYPO-UND                 )
VEREINSBANK AG by:                  )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      41 Moorgate
                          London EC2R 6PP

Facsimile No.:            +44 207 638 1710/1712

Attention:                Geoffrey Oates/Martin Self

                                     -138-

<PAGE>

[FORTIS BANK (NEDERLAND)            )
N.V.](18) by:                       )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      Coolsingel 93
                          P.O. Box 749
                          3000 AS Rotterdam

Facsimile No.:            +31 10 401 6433

Attention:                Peter Boogers/Juultje van der Wijk

_______________________________________

(18)     Previously called Mees Pierson N.V.

                                     -139-

<PAGE>

[SAMPO BANK PLC](19) by:            )
                                    )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      Etelaesplanadi 8
                          FIN-00007 Helsinski
                          Finland

Facsimile No.:            +358 204 25 7344

Attention:                Export and Project Finance

_______________________________________

(19)     Not an original signatory to the Agreement. Added as an additional
         Co-Arranger pursuant to the Letter Agreement. Previously called Leonia
         Corporate Bank plc. Transferred interest in Agreement to Standard Bank
         London Limited

                                     -140-

<PAGE>

SOCIETE GENERALE by:                )
                                    )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      SG House
                          41 Tower Hill
                          London EC3N 4SG

Facsimile No.:            +44 207 667 2489

Attention:                Peter Donkin

                                     -141-

<PAGE>

THE AGENT

per pro N M ROTHSCHILD & SONS       )
LIMITED by:                         )
                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

                                               ______________________________
                                               Signature
                                               ______________________________
                                               Name Printed
                                               ______________________________
                                               Title

Address for Notices:      New Court
                          St. Swithin's Lane
                          London
                          EC4P 4DU

Facsimile No.:            +44 207-280-5139

Attention:                David Street/George Pyper

                                     -142-

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