Document:

exv4w20

 

Exhibit 4.20

SENIOR BRIDGE LOAN FACILITY AGREEMENT

between

FIRSTRAND BANK LIMITED

(acting though its Rand Merchant Bank division)

and

HARMONY GOLD MINING COMPANY LIMITED

 

Page 2

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1
	 	INTERPRETATION 	 	 	3	 
	2
	 	INTRODUCTION 	 	 	36	 
	3
	 	ADVANCE CONDITIONS 	 	 	37	 
	4
	 	BRIDGE LOAN FACILITY 	 	 	43	 
	5
	 	DRAWDOWN 	 	 	44	 
	6
	 	INTEREST 	 	 	45	 
	7
	 	REPAYMENT OF BRIDGE LOAN AND PAYMENT OF INTEREST 	 	 	47	 
	8
	 	EXTENSION OF REPAYMENT DATE 	 	 	47	 
	9
	 	ALL PAYMENTS 	 	 	50	 
	10
	 	REPRESENTATIONS AND WARRANTIES 	 	 	51	 
	11
	 	POSITIVE UNDERTAKINGS 	 	 	60	 
	12
	 	NEGATIVE UNDERTAKINGS 	 	 	65	 
	13
	 	DEFAULT 	 	 	70	 
	14
	 	VOLUNTARY PRE-PAYMENT 	 	 	81	 
	15
	 	RIGHT OF FIRST REFUSAL 	 	 	82	 
	16
	 	PROOF OF INDEBTEDNESS 	 	 	83	 
	17
	 	FEES 	 	 	84	 
	18
	 	CHANGE IN CIRCUMSTANCES 	 	 	85	 
	19
	 	GROSS UP 	 	 	92	 
	20
	 	TAX INDEMNITY 	 	 	93	 
	21
	 	ILLEGALITY 	 	 	95	 
	22
	 	AUTOMATIC RIGHT OF SET-OFF 	 	 	97	 
	23
	 	RENUNCIATION OF BENEFITS 	 	 	97	 
	24
	 	BENEFIT OF THE AGREEMENT 	 	 	98	 
	25
	 	NOTICES AND DOMICILIA 	 	 	98	 
	26
	 	SEVERABILITY 	 	 	102	 
	27
	 	GENERAL 	 	 	103	 
	28
	 	INDEPENDENT ADVICE 	 	 	105	 
	29
	 	APPLICABLE LAW AND JURISDICTION 	 	 	106	 
	30
	 	COSTS 	 	 	107	 
	31
	 	SIGNATURE 	 	 	109	 

ANNEXES

ANNEXE “A” : EXTENSION NOTICE

ANNEXE “B” : PREPAYMENT ADVICE

 

 

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WHEREBY
IT IS AGREED AS FOLLOWS -

	1	 	INTERPRETATION
	 
	1.1	 	In this Agreement-
	 
	1.1.1	 	clause headings and sub-headings are for convenience only and are not to be used in its
interpretation; and
	 
	1.1.2	 	an expression which denotes -
	 
	1.1.2.1	 	any gender includes the other genders;
	 
	1.1.2.2	 	a natural person includes a juristic person and vice versa;
	 
	1.1.2.3	 	the singular includes the plural and vice versa.
	 
	1.2	 	In this Agreement, unless the context indicates a contrary intention, the following words
and expressions bear the meanings assigned to them below, and cognate expressions bear
corresponding meanings -
	 
	1.2.1	 	“Advance” means an advance made or to be made by the Lender to the Borrower in terms of
this Agreement;
	 
	1.2.2	 	“Advance Conditions” means the conditions which are to be fulfilled prior to the Lender
making the Advance as set out in clause 3;
	 
	1.2.3	 	“Advance Date” means 29 June 2007;
	 
	1.2.4	 	“Affiliate” means, in relation to any person, a subsidiary of that person or a holding
company of that person or any other subsidiary of that holding company;
	 
	1.2.5	 	“Agreement” means this Senior Bridge Loan Facility agreement and includes any annexes;

 

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	1.2.6	 	“Arranging Fee” means the arranging fee referred to in clause 17.1 below;
	 
	1.2.7	 	“Borrower” means Harmony Gold Mining Company Limited, registration number 1950/038232/06, a
public company duly incorporated in accordance with the laws of the Republic of South Africa;
	 
	1.2.8	 	“Bridge Loan Facility” means the bridge loan facility in an amount not exceeding the
Capital Amount to be made available by the Lender to the Borrower on the terms and conditions
set out in this Agreement;
	 
	1.2.9	 	“Capital Amount” means the principal amount of the Bridge Loan Facility, namely
R500,000,000.00 (five hundred million rand);
	 
	1.2.10	 	“Change in Law” means any implementation, introduction, abolition, withdrawal or variation
of any Law or any change in any interpretation of any Law;
	 
	1.2.11	 	“Closing Date” means the date of fulfilment or waiver, as the case may be, of the last
outstanding Advance Condition;
	 
	1.2.12	 	“Companies Act” means the Companies Act, 1973;
	 
	1.2.13	 	“Default Interest” means default interest at the Prime Rate plus 200 (two hundred) basis
points per annum, calculated from the due date for payment until and including the date of
actual payment of the relevant amount;
	 
	1.2.14	 	“Designated Account” means the bank account nominated by the Borrower, the details of which
are set out below -

 

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	Name of Account
	 	Harmony Gold Mining Co Ltd
	Bank:
	 	Absa Bank Limited
	Branch:
	 	Corporate
	Branch Code:
	 	632005
	Account Number:
	 	40-4873-7227

	1.2.15	 	“Encumbrance” means any mortgage, pledge, lien, deed of cession, assignment, hypothecation
or security interest or any other agreement or arrangement having the effect of conferring
security whether by contract or operation of Law, including any arrangement under which money
or claims to, or the benefit of, a bank or other account may be applied, setoff or made
subject to a combination of accounts so as to effect discharge of any sum owed or payable to
any person and “Encumber” shall be construed accordingly;
	 
	1.2.16	 	“Existing Debt Facilities” means those facilities granted to the Borrower as at the
Signature Date, which have been disclosed in writing by the Borrower to the Lender prior to
the Signature Date, provided that all Existing Debt Facilities disclosed in the Financial
Statements and the Form 20F shall be deemed to have been disclosed by the Borrower to the
Lender;
	 
	1.2.17	 	“Extended Interest Period” means the period commencing on the day immediately following the
Repayment Date and ending on the earlier of-
	 
	1.2.17.1	 	the Extended Repayment Date; and
	 
	1.2.17.2	 	the date on which the Facility Outstandings are repaid in full;
	 
	1.2.18	 	“Extended Period Interest Rate” means the sum of the SAFEX Overnight Rate plus the Extended
Period Margin;
	 
	1.2.19	 	“Extended Repayment Date” means 30 September 2007;

 

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	1.2.20	 	“Extended Period Margin” means 360 (three hundred and sixty) basis points nacm inclusive of
treasury and mandatory statutory costs;
	 
	1.2.21	 	“Extension Notice” means an extension notice as contemplated in clause 8.1;
	 
	1.2.22	 	“Event of Default” means any one or more of the events or circumstances described as such
in clause 13.1;
	 
	1.2.23	 	“Facility Outstandings” means all amounts of any nature whatsoever outstanding in terms of
this Agreement;
	 
	1.2.24	 	“Facility Purpose” means the funding of the Borrower’s capital expenditure requirements in
respect of the Hidden Valley Mine Project;
	 
	1.2.25	 	“Finance Documents” means -
	 
	1.2.25.1	 	this Agreement, any Drawdown Notices, an Extension Notice and any Prepayment Advice;
	 
	1.2.25.2	 	any other document designated in writing as a Finance Document by the Parties;
	 
	1.2.26	 	“Financial Indebtedness” includes any obligation for the payment or repayment of money,
whether actual or contingent, present or future, secured or unsecured, and whether incurred as
principal or surety or otherwise;
	 
	1.2.27	 	“Financial Statements” means the consolidated audited financial statements of the Borrower
in respect of the 12 (twelve) month period ended 30 June 2006 and for the 6 (six) month
period ended 31 December 2006;

 

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	1.2.28	 	“Financial Year” means the financial year of the Borrower ending on last day in June in
each year;
	 
	1.2.29	 	“Form 20F” means the Form 20F for the Financial Year ended 30 June 2006, lodged by or on
behalf of the Borrower with the Securities Exchange Commission of the United States of
America during October 2006;
	 
	1.2.30	 	“Harmony Note Issue” means the Senior Unsecured Fixed Rate Notes to be issued by the
Borrower for an aggregate issue price of approximately USD400,000,000 (four hundred million
United States Dollars) on or about July 2007;
	 
	1.2.31	 	“Hidden Valley Mine Project” means the development of the Hidden Valley Mine in Papua New
Guinea;
	 
	1.2.32	 	“GAAP” means Statements of Generally Accepted Accounting Practice in effect from time to
time in South Africa, developed by the South African Institute of Chartered Accountants and
as approved by the Accounting Practices Board;
	 
	1.2.33	 	“IFRS” means, if applicable, the International Financial Reporting Standard as applied by
the Borrower from time to time;
	 
	1.2.34	 	“Increased Costs” means any and all reasonable additional or increased costs that the Lender
incurs in terms of this Agreement from whatsoever cause arising, over and above the costs
anticipated at the Signature Date (but excluding any costs that arise as a result of the gross
negligence of the Lender), all as more fully contemplated in clause 18.1 below;
	 
	1.2.35	 	“Insolvency Act” means the Insolvency Act, 1936;

 

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	1.2.36	 	“Initial Interest Period” means the period commencing on the Advance Date and ending on the
Repayment Date;
	 
	1.2.37	 	“Initial Interest Rate” means the sum of the SAFEX Overnight Rate plus the Initial Margin;
	 
	1.2.38	 	“Initial Margin” means 240 (two hundred and forty) basis points nacm inclusive of treasury
and mandatory statutory costs;
	 
	1.2.39	 	“Interest” means interest, calculated at the Initial Interest Rate or the Extended Period
Interest Rate, as the case may be, on the amount of the Bridge Loan Facility outstanding from
time to time as detailed in clause 6;
	 
	1.2.40	 	“Interest Reset Date” means each day during the Initial Interest Period and, where
applicable, each day during the Extended Interest Period;
	 
	1.2.41	 	“Interest Rate” means the Initial Interest Rate or the Extended Period Interest Rate, as
applicable;
	 
	1.2.42	 	“Law” means the common law and statutory law applicable in South Africa, including (to the
extent it has the force of law) any present or future constitution, decree, judgement,
legislation, measure, requirement, order, ordinance, regulation, statute, treaty, directive,
rule, guideline, practice, concession, or request issued by any relevant authority,
governmental body, agency or department or any central bank or other fiscal, monetary,
regulatory or other statutory authority or agency;
	 
	1.2.43	 	“Lender” means FirstRand Bank Limited, Registration No. 1929/001225/06, acting through its
Rand Merchant Bank division, a registered bank and a public company with limited liability
duly incorporated in South Africa;

 

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	1.2.44	 	“Material Adverse Effect” means a material change in the circumstances existing as at the
Signature Date which has or, in the Lender’s reasonable opinion, may have a material adverse
effect on -
	 
	1.2.44.1	 	the business or financial condition of the Borrower which affects materially and
adversely the ability of the Borrower to perform its obligations to the Lender in terms of
the Finance Documents; or
	 
	1.2.44.2	 	the validity or enforceability of the Finance Documents against the Borrower or the
rights or remedies of the Lender against any party under the Finance Documents;
	 
	1.2.45	 	“nacm” means nominal annual compounded monthly;
	 
	1.2.46	 	“Parties” means the parties to this Agreement;
	 
	1.2.47	 	“Permitted Acquisitions and Disposals” means -
	 
	1.2.47.1	 	the disposal of assets of the Borrower or the acquisition of assets by the Borrower in
the ordinary course of business of the Borrower;
	 
	1.2.47.2	 	the disposal by the Borrower of all of the issued ordinary shares in the share capital of
African Rainbow Minerals Gold Limited to Pamodzi Gold Limited;
	 
	1.2.47.3	 	any other acquisitions or disposals outside the ordinary course of business of the
Borrower which may be agreed to by the Lender in writing;
	 
	1.2.48	 	“Permitted Encumbrance” means -
	 
	1.2.48.1	 	Encumbrances existing as at the Signature Date as more fully set out in the Financial
Statements and/or Form 20F; and
	 
	1.2.48.2	 	Encumbrances created with the prior written consent of the Lender;

 

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	1.2.49	 	“Permitted Indebtedness” means -
	 
	1.2.49.1	 	indebtedness incurred by the Borrower under and in accordance with the Existing Debt
Facilities;
	 
	1.2.49.2	 	indebtedness incurred by the Borrower and which is utilised to settle in full the Facility
Outstandings; and
	 
	1.2.49.3	 	indebtedness approved by the Lender in writing prior to the Borrower incurring such
indebtedness;
	 
	1.2.50	 	“Potential Event of Default” means any event or circumstance which, with the giving of
notice, lapse of time or fulfilment of any other condition, would be or constitute an Event
of Default;
	 
	1.2.51	 	“Prepayment Advice” means a prepayment advice as contemplated in clause 14.1.1;
	 
	1.2.52	 	“Prime Rate” means the publicly quoted rate (percent, per annum) from time to time charged
by the Lender for similar amounts on unsecured overdraft to its prime customers in good
standing in the private sector, as certified by any manager of that bank whose appointment
and designation it will not be necessary to prove, calculated on a daily basis and compounded
monthly in arrear;
	 
	1.2.53	 	“rands” means the currency of South Africa;
	 
	1.2.54	 	“Reduced Cost Benefit” means any reduction in the cost to the Lender of making or
maintaining the Bridge Loan Facility as contemplated in clause 18.2;
	 
	1.2.55	 	“Repayment Date ” means the date for repayment of Facility Outstandings, which date shall
be 31 July 2007;

 

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	1.2.56	 	“SAFEX” means SAFEX Financial Derivatives, a division of the JSE Limited;
	 
	1.2.57	 	“SAFEX Overnight Rate” means, in respect of each Interest Reset Date, the overnight deposit
rate published by SAFEX (or its successor-in-title) opposite the caption ‘Overnight Dep Rate’
on the SAFEY page on Reuters at 11h00 on that date;
	 
	1.2.58	 	“Shareholders” means shareholders in the Borrower from time to time;
	 
	1.2.59	 	“Signature Date” means the date of signature of this Agreement by the Party last signing;
	 
	1.2.60	 	“South Africa” means the Republic of South Africa;
	 
	1.2.61	 	“Taxes” means all taxes, charges, imposts, levies, deductions, withholdings or fees of any
kind whatsoever, or any amount payable on account of or as security for any of the aforegoing
on whomsoever imposed, levied, collected, withheld or assessed by any monetary or fiscal
authority, together with any penalties, additions, fines, surcharges or interest relating
thereto, and the words “Tax” and “Taxation” shall be construed accordingly;
	 
	1.2.62	 	“Term” means the period calculated with effect from the Advance Date to the date on which
the Facility Outstandings have been repaid in full;
	 
	1.2.63	 	“United States Dollar/s” or “USD” means the lawful currency of the United States of
America; and
	 
	1.2.64	 	“VAT” means value-added-tax levied in terms of the Value-Added Tax Act, 1991.
	 
	1.3	 	Any substantive provision, conferring rights or imposing obligations on a Party and
appearing in any of the definitions in this clause 1 or elsewhere in

 

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this Agreement, shall be given effect to as if it were a substantive provision in the
body of the Agreement.

	1.4	 	Words and expressions defined in any clause shall, unless the application of any such word
or expression is specifically limited to that clause, bear the meaning assigned to such word
or expression throughout this Agreement.
	 
	1.5	 	Subject to the provisions of clauses 1.8 and 1.20, defined terms appearing in this Agreement
in title case shall be given their meaning as defined, while the same terms appearing in
lower case shall be interpreted in accordance with their plain English meaning.
	 
	1.6	 	The terms “holding company” and “subsidiary” shall bear the meanings assigned to them under
the Companies Act.
	 
	1.7	 	A reference to any statutory enactment shall be construed as a reference to that enactment
as at the Signature Date and as amended or substituted from time to time.
	 
	1.8	 	Reference to “days” shall be construed as calendar days unless qualified by the word
“business”, in which instance a “business day” shall be any day other than a Saturday, Sunday
or public holiday as gazetted by the government of the Republic of South Africa from time to
time. Any reference to “business hours” shall be construed as being the hours between 08h30
(eight hours and thirty minutes) and 17h00 (seventeen hours) on any business day. Any
reference to time shall be based upon South African Standard Time.
	 
	1.9	 	Unless specifically otherwise provided, any number of days prescribed shall be determined by
including the first and excluding the last day.

 

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	1.10	 	In the event that the day for payment of any amount due in terms of this Agreement should
fall on a day which is not a business day, the relevant day for payment shall be the
preceding business day.
	 
	1.11	 	In the event that the day for performance of any obligation to be performed in terms of this
Agreement should fall on a day which is not a business day, the relevant day for performance
shall be the subsequent business day.
	 
	1.12	 	Any reference in this Agreement to this Agreement or any other agreement or document shall
be construed as a reference to this Agreement or, as the case may be, such other agreement or
document as same may have been, or may from time to time be, amended, varied, novated or
supplemented.
	 
	1.13	 	Save as specifically otherwise provided herein, no provision of this Agreement constitutes a
stipulation for the benefit of any person who is not a Party to this Agreement.
	 
	1.14	 	Where figures are referred to in numerals and in words, and there is any conflict between the
two, the words shall prevail, unless the context indicates a contrary intention.
	 
	1.15	 	No provision herein shall be construed against or interpreted to the disadvantage of a Party
by reason of such Party having or being deemed to have structured, drafted or introduced such
provision.
	 
	1.16	 	The expiration or termination of this Agreement shall not affect such of the provisions of
this Agreement as expressly provide that they will operate after any such expiration or
termination or which of necessity must continue to have effect after such expiration or
termination, notwithstanding that the clauses themselves do not expressly provide for this.
	 
	1.17	 	This Agreement shall be binding on and enforceable by the estates, heirs, executors,
administrators, trustees, permitted assigns or liquidators of the

 

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Parties as fully and effectually as if they had signed this Agreement in the first
instance and reference to any Party shall be deemed to include such Party’s estate,
heirs, executors, administrators, trustees, permitted assigns or liquidators, as the
case may be.

	1.18	 	The use of any expression in this Agreement covering a process available under South African
law such as winding-up shall, if any of the Parties is subject to the law of any other
jurisdiction, be construed as including any equivalent or analogous proceedings under the law
of such other jurisdiction.
	 
	1.19	 	The words “include” and “including” mean “include without limitation” and “including without
limitation”. The use of the words “include” and “including” followed by a specific example or
examples shall not be construed as limiting the meaning of the general wording preceding it.
The application of the eiusdem generis rule is therefore excluded.
	 
	1.20	 	Save as specifically otherwise provided, in this Agreement the words “clause” or “clauses”
refer to clauses of this Agreement.
	 
	2	 	INTRODUCTION
	 
	2.1	 	The Borrower has requested the Lender to provide the Bridge Loan Facility and the Lender has
agreed to provide the Bridge Loan Facility to the Borrower for the Facility Purpose, subject
to the terms and conditions set out in this Agreement and the applicable terms and conditions
contained in the remaining Finance Documents.
	 
	2.2	 	The Parties wish to record in writing their agreement in respect of the above.

 

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	3	 	ADVANCE CONDITIONS
	 
	3.1	 	Notwithstanding anything to the contrary contained in this Agreement, the
Lender shall not be obliged to make any Advance to the Borrower under the Bridge Loan
Facility unless the following Advance Conditions have been fulfilled or, if applicable,
waived or deferred by the Lender pursuant to clause 3.2 -
	 
	3.1.1	 	the Lender receiving certified copies of resolutions of the board of directors of the
Borrower (in a form and substance acceptable to the Lender) -
	 
	3.1.1.1	 	approving the entering into of the Finance Documents;
	 
	3.1.1.2	 	authorising a specified person or persons to execute and implement the Finance Documents;
	 
	3.1.2	 	the following documents have been delivered by the Borrower to the Lender in certified copy
form -
	 
	3.1.2.1	 	the Memorandum and Articles of Association;
	 
	3.1.2.2	 	Certificate of Incorporation;
	 
	3.1.2.3	 	Certificate to Commence Business; and
	 
	3.1.2.4	 	Certificate of Change of Name (to the extent applicable), of the Borrower;
	 
	3.1.3	 	the Lender has received the audited consolidated Financial Statements of the Borrower;
	 
	3.1.4	 	the Lender receiving a certificate by a director or the company secretary of the Borrower
(in form and substance acceptable to the Lender) -

 

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	3.1.4.1	 	confirming that the entering into and implementation of the Finance Documents by the
Borrower would not cause any borrowing limit binding on it to be exceeded;
	 
	3.1.4.2	 	certifying that each document delivered under this clause 3.1 is a true copy of the
original, correct, complete and in full force and effect as at the Signature Date; and
	 
	3.1.4.3	 	certifying that no Event of Default or Potential Event of Default has occurred; and
	 
	3.1.5	 	the transactions contemplated in this Agreement as well as the terms and conditions hereof
being approved in writing by the Lender’s credit committee; and
	 
	3.1.6	 	the Lender having received all documentation which is required in relation to the Borrower
in order to enable it to comply with the requirements of the Financial Intelligence Centre
Act, 2001.
	 
	3.2	 	The Advance Conditions have been inserted for the benefit of the Lender who will be
entitled, by written notice to the Borrower, to waive or defer fulfilment of one or more of
the said conditions, in the Lender’s sole and absolute discretion. To the extent that the
Lender -
	 
	3.2.1	 	defers fulfilment, those Advance Conditions shall be fulfilled by the deferred due date; or
	 
	3.2.2	 	waives fulfilment, those Advance Conditions will be deemed to have been fulfilled.
	 
	3.3	 	Each of the Parties will use commercially reasonable endeavours and the Parties will
co-operate in good faith to procure the fulfilment of the Advance

 

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Conditions as soon as reasonably possible after the Signature Date but in any event not
later than the Advance Date.

	3.4	 	If the Advance Conditions are not fulfilled, deferred and/or waived by not later than the
date referred to in clause 3.3, this Agreement may be cancelled in the sole and absolute
discretion of the Lender and the Bridge Loan Facility shall thereafter no longer be available
to be made to the Borrower, without prejudice to any claim for fees, costs or wasted
expenditure incurred or owing to the Lender in terms of clause 30 and any losses or damages
suffered by the Lender or the Borrower pursuant to a breach of the provisions of clause 3.3.
Without limiting clause 3.3, the Lender shall however, by means of a written notification to
the Borrower, be entitled to extend the period for fulfilment (or waiver) of the Advance
Conditions.
	 
	4	 	BRIDGE LOAN FACILITY
	 
	4.1	 	Subject to the terms and conditions of this Agreement, the Lender agrees to make available
to the Borrower, the Bridge Loan Facility which will be released and drawn down by way of a
single cash advance in accordance with the provisions of this Agreement.
	 
	4.2	 	Any amount advanced in terms of the Bridge Loan Facility will be deposited into the
Designated Account.
	 
	5	 	DRAWDOWN
	 
	5.1	 	Subject to the fulfilment or waiver of the Advance Conditions in clause 3 and to the
provisions of clause 4, and subject to there being no Event of Default or Potential Event of
Default, the Lender shall advance the Capital Amount to the Borrower in one lump sum on the
Advance Date.

 

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	5.2	 	Notwithstanding anything to the contrary contained herein, the Lender shall not be obliged
to make any Advance to the Borrower to the extent that the making of such Advance would
result in the Capital Amount being exceeded.
	 
	6	 	INTEREST
	 
	6.1	 	Interest will, during the Initial Interest Period, be levied and be payable by the Borrower
in respect of the Bridge Loan Facility at the Initial Interest Rate provided that all
Interest payable pursuant to this clause 6, shall -
	 
	6.1.1	 	accrue and be calculated on a daily basis;
	 
	6.1.2	 	be compounded monthly in arrears;
	 
	6.1.3	 	be payable simultaneously with the repayment of the Capital Amount; and
	 
	6.1.4	 	be calculated on the basis of the actual number of days elapsed divided by a 365 (three
hundred and sixty five) day year, whether or not the year is a leap year.
	 
	6.2	 	The Borrower acknowledges that the amounts payable by the Borrower in respect of Interest
will be a function of the Interest Rate and may change with variations to the Interest Rate
from time to time.
	 
	6.3	 	This entire clause 6 is subject to the provisions of clauses 9.3 and 13.2.4.
	 
	7	 	REPAYMENT OF BRIDGE LOAN AND PAYMENT OF INTEREST

Subject to the provisions of clause 8, the Facility Outstandings will be repaid by the
Borrower to the Lender in full on the Repayment Date.

 

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	8	 	EXTENSION OF REPAYMENT DATE
	 
	8.1	 	The Borrower shall, by way of a written Extension Notice (in form and substance
substantially similar to that contained in annexe “A” hereto) delivered to the Lender not
less than 5 (five) business days before the Repayment Date, be entitled to extend repayment
of the Bridge Loan Facility such that the Facility Outstandings will be repaid by the
Borrower in full on the Extended Repayment Date and not the Repayment Date.
	 
	8.2	 	Interest will, during the Extended Interest Period, be levied and be payable by the Borrower
in respect of the Bridge Loan Facility at the Extended Period Interest Rate provided that all
Interest payable pursuant to this clause 8.2, shall -
	 
	8.2.1	 	accrue and be calculated on a daily basis;
	 
	8.2.2	 	be compounded monthly in arrears;
	 
	8.2.3	 	be payable simultaneously with the repayment of the Capital Amount; and
	 
	8.2.4	 	be calculated on the basis of the actual number of days elapsed divided by a 365 (three
hundred and sixty five) day year, whether or not the year is a leap year.
	 
	8.3	 	If the Borrower exercises its right to extend the date for repayment of the Facility
Outstandings as contemplated in clause 8.1, the Facility Outstandings will be repaid by the
Borrower to the Lender in full on the Extended Repayment Date.

	9	 	ALL PAYMENTS
	 
	9.1	 	Subject to the provisions of this Agreement, all payments to be made by the Borrower to the
Lender in terms of this Agreement shall be made in rands,

 

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	 	 	free of exchange, any other costs, charges or expenses and without any deduction,
set-off or counterclaim whatsoever in accordance with the Lender’s written payment
instructions from time to time.
	 
	9.2	 	All payments hereunder shall be appropriated in the first instance to the payment of any
costs, charges or expenses, thereafter to Interest then due and payable, and thereafter in
reduction of the amounts outstanding under the Bridge Loan Facility.
	 
	9.3	 	Without prejudice to the Lender’s right to demand payment of principal or Interest promptly
on the due dates thereof in terms of this Agreement, the Borrower shall immediately upon
demand by the Lender, pay Default Interest on any amount of principal or Interest unpaid on
due date in terms of this Agreement.

	10	 	REPRESENTATIONS AND WARRANTIES
	 
	10.1	 	Each warranty and representation set out in this Agreement shall be a separate warranty and
representation and shall (except as otherwise expressly stated in this Agreement) in no way be
limited or restricted by reference to or inference from the terms of any other warranty or
representation.
	 
	10.2	 	The representations and warranties set out below shall be deemed to be given on the Signature
Date, the Advance Date and on each day during the Term. Insofar as any of the warranties is
promissory or relates to a future event, they shall be deemed to have been given as at the due
date for fulfilment of the promise or for the happening of the event, as the case may be. When
a representation or warranty is repeated it is applied to the circumstances existing at the
time of repetition.
	 
	10.3	 	The Borrower represents and warrants to the Lender that -

 

Page 21

	10.3.1	 	it is a limited liability public company duly registered in accordance with the laws of
South Africa and has been incorporated and possesses the capacity to sue or be sued in its
own name and has the power to carry on its business as it is now being conducted;
	 
	10.3.2	 	it has the power to own its assets and has, or will have at the time at which those assets
are necessary to carry on its business, good, unencumbered title of ownership to and all
other appropriate rights, licences, authorisations or consents required to use the assets
necessary to carry on its business;
	 
	10.3.3	 	it has the power to enter into and perform the Finance Documents to which it is a party and
it has taken all necessary action to authorise the entry into of this Agreement and the
performance of the transactions contemplated thereby;
	 
	10.3.4	 	the Finance Documents constitute the legal, valid and binding obligations of the Borrower
and are enforceable against the Borrower in accordance with their terms;
	 
	10.3.5	 	the entry into and performance by it of the Finance Documents and the transactions
contemplated therein do not -
	 
	10.3.5.1	 	conflict with any Law to which it is subject;
	 
	10.3.5.2	 	conflict with its constitutional documents and/or its Memorandum and Articles of
Association; or
	 
	10.3.5.3	 	conflict with any agreement or document to which it is a party or which is binding upon it
or any of its assets;

 

Page 22

	10.3.6	 	no Event of Default or Potential Event of Default is outstanding or will result from the
execution of, or the performance of any transaction contemplated by the Finance Documents;
	 
	10.3.7	 	no Material Adverse Effect has occurred in respect of the Borrower;
	 
	10.3.8	 	it has not committed an act of insolvency as defined in the Insolvency Act, no corporate
action or any other steps have been taken, and no proceedings have been instituted against it
for its winding-up, liquidation, judicial management, dissolution, administration or
reorganisation or for the appointment of an administrator, liquidator, judicial manager or
similar officer and no such steps or proceedings have, since the Signature Date hereof, been
taken that have not been disclosed to the Lender within 3 (three) business days of the
Borrower becoming aware thereof;
	 
	10.3.9	 	its assets, fairly valued, exceed its liabilities;
	 
	10.3.10	 	it has obtained and is in compliance with all such material licences, consents, permits,
approvals and other authorities as are prescribed by Law for the conduct of its business in
each jurisdiction in which the business is conducted, and the Borrower is not aware of any
fact or circumstance which may result in the cancellation, withdrawal
or non-renewal of any of
them;
	 
	10.3.11	 	other than as set out in the Financial Statements and/or the Form 20F or as otherwise
disclosed to the Lender in writing as at the Signature Date (if at all), there exists no
Encumbrance and/or security over any of the major assets of the Borrower and it is under no
obligation (other than pursuant to the Finance Documents) to create any such encumbrance;

 

Page 23

	10.3.12	 	save for the information contained in Form 20F, there is no further information of
whatsoever nature or kind in the possession of the Borrower that has not been disclosed to the
Lender, which would have been material in the decision of the Lender to enter into this
Agreement;
	 
	10.3.13	 	the Financial Statements have been prepared in accordance with GAAP or IFRS, as
applicable, consistently applied and fairly represent its financial condition as at the date
to which they were drawn up, except as disclosed to the contrary in those Financial
Statements; and
	 
	10.3.14	 	under the laws of South Africa, only those creditors whose claims are preferred solely by
statute or by operation of law will rank in priority to the claims of the Lender against the
Borrower under the Finance Documents.

	11	 	POSITIVE UNDERTAKINGS
	 
	11.1	 	The undertakings in clause 11.2 shall remain in full force and effect from the Signature
Date and the Borrower shall comply with each such undertaking for so long as any amount
remains outstanding under this Agreement.
	 
	11.2	 	The Borrower shall -
	 
	11.2.1	 	procure, maintain and comply with all authorisations, consents and approvals necessary in
terms of this Agreement, the Finance Documents or approval from a legislative point of view,
for the duration of this Agreement;
	 
	11.2.2	 	procure, maintain and comply with all Laws and registration obligations applicable to its
business operations for the duration of this Agreement to the extent that non-compliance with
such Laws and/or obligations would result in a Material Adverse Effect;

 

Page 24

	11.2.3	 	promptly notify the Lender in writing, of any material litigation and other material
matters;
	 
	11.2.4	 	forthwith upon becoming aware of the occurrence thereof, notify the Lender of -
	 
	11.2.4.1	 	any Event of Default or Potential Event of Default;
	 
	11.2.4.2	 	any attachment or attempted attachment of any of its material assets;
	 
	11.2.4.3	 	the happening of any event which may reasonably be anticipated will result in a Material
Adverse Effect;
	 
	11.2.4.4	 	details of all facts or circumstances of which the Borrower becomes aware which have or
are likely to have the effect that any of the Finance Documents will no longer be valid and
of full force and effect;
	 
	11.2.5	 	procure that any and all proceeds received by the Borrower, or to which the Borrower
becomes entitled, under and in terms of the Harmony Bond Issue shall forthwith be applied to
reduce the Borrower’s indebtedness to the Lender under this Agreement and for no other
purpose whatsoever until the Facility Outstandings have been repaid in full;
	 
	11.2.6	 	perform all its obligations under the Finance Documents in accordance with their respective
terms;
	 
	11.2.7	 	duly file all tax returns containing information required by law to be contained therein;
	 
	11.2.8	 	pay all Taxes which are due and payable by it by the due date therefor and will pay any
additional Taxes (and any penalties relating thereto) subsequently assessed by the relevant
Taxation authorities (save to the extent that payment of the same is being contested in good
faith);

 

Page 25

	11.2.9	 	timeously settle in full all its liabilities as and when they fall due for payment; and
	 
	11.2.10	 	ensure that no dividends or distributions are paid by it in the event of a Potential Event
of Default or an Event of Default.

	12	 	NEGATIVE UNDERTAKINGS
	 
	12.1	 	The undertakings in clause 12.2 below shall remain in full force and effect from the
Signature Date, and the Borrower shall comply with each such undertaking for the duration of
the Term.
	 
	12.2	 	The Borrower shall not, save with the prior written consent of the Lender, which consent
will not be unreasonably withheld or delayed, for so long as any amounts remain outstanding
under the Bridge Loan Facility -
	 
	12.2.1	 	permit any material change in the nature of the Borrower’s business;
	 
	12.2.2	 	undertake any additional business that is materially different in nature to its business as
at the Signature Date hereof or cease to carry on its business in a normal and regular manner
or cease to conduct or abandon or suspend any material part of its business;
	 
	12.2.3	 	amend, vary or terminate any Finance Document, or do anything, which might reasonably
prejudice or actually prejudices the Borrower’s ability to repay the Bridge Loan Facility and
Interest thereon;
	 
	12.2.4	 	create or permit to subsist any Encumbrance on the whole or any part of its present or
future assets and income streams other than in terms of a Permitted Encumbrance;
	 
	12.2.5	 	enter into any agreement, arrangement or contract with any entity unless such agreement,
arrangement or contract is entered into on an arms length basis and in the normal course of
business;

 

Page 26

	12.2.6	 	make any distribution to any of its Shareholders or incur any obligation to do so, whether
by the declaration or payment of any dividends or the reduction of any share capital or share
premium, or any other distribution or the acquisition or redemption of its own shares or by
any other means, or discharge, whether by payment, set-off or any other mode of discharge, the
whole or any part of any loans made to it by any of its Shareholders, or pay any interest on
any amount owed by it to any of its Shareholders, at any time during which an Event of Default
or Potential Event of Default has occurred and is continuing or where such distribution,
acquisition, discharge or payment constitutes or would result in an Event of Default or
Potential Event of Default;
	 
	12.2.7	 	make any loans or make any other form of credit available to any other person other than -
	 
	12.2.7.1	 	loans granted to Affiliates of the Borrower, provided that the capital amount of any such
loan, when aggregated with the outstanding capital amounts of all other loans advanced by the
Borrower to its Affiliates, does not exceed R50,000,000 (fifty million rand);
	 
	12.2.7.2	 	trade credit given in the ordinary course of the Borrower’s business;
	 
	12.2.8	 	incur any Financial Indebtedness other than Permitted Indebtedness; and
	 
	12.2.9	 	make any acquisition or disposal of assets other than Permitted Acquisitions and Disposals.

	13	 	DEFAULT
	 
	13.1	 	Each of the following events shall constitute an Event of Default (whether or not caused by
any reason whatsoever outside the control of the Borrower, except to the extent it is caused
by the Lender) -

 

Page 27

	13.1.1	 	if the Borrower-
	 
	13.1.1.1	 	fails to pay any amount/s in terms of this Agreement on the due date for payment thereof;
	 
	13.1.1.2	 	fails to repay the Facility Outstandings in full by the Extended Repayment Date, if
applicable;
	 
	13.1.1.3	 	breaches any of the provisions of this Agreement (other than as contemplated in clause
13.1.1.1) and fails to rectify same within 10 (ten) business days of notice in writing from
the Lender calling upon it to do so;
	 
	13.1.1.4	 	fails to pay any Financial Indebtedness in excess of R1,000,000.00 (one million rand)
when due and any such failure continues for more than any applicable period of grace, if any,
or any such Financial Indebtedness becomes prematurely due and payable or is placed on
demand, or any creditor of the Borrower becomes entitled to declare any such Financial
Indebtedness prematurely due and payable or to place it on demand or to realise or claim
under any Encumbrance in respect of such Financial Indebtedness;
	 
	13.1.1.5	 	commits an act which is or would (if committed by a natural person) be an act of
insolvency within the meaning of section 8 of the Insolvency Act or section 344 of the
Companies Act;
	 
	13.1.1.6	 	is, or is deemed for the purposes of any Law, to be unable to pay its debts as they fall
due or admits in writing its inability to pay its debts as they fall due;
	 
	13.1.1.7	 	allows any judgment against it in an amount exceeding R1,000,000.00 (one million rand) to
remain unsatisfied for a period of

 

Page 28

		 	14 (fourteen) days of it being given, or the Borrower fails to take steps for its
rescission or to note an appeal within that time;
	 
	13.1.1.8	 	takes any procedural step (including petition, proposal or convening a meeting) with a
view to compromising or compromises or attempts to compromise with, or defer payment of any
debt owing by the Borrower to, any of its creditors;
	 
	13.1.1.9	 	convenes a meeting for the purpose of considering any resolution for (or to petition for)
its winding-up or for its administration or any such resolution is passed;
	 
	13.1.1.10	 	is provisionally or finally liquidated, removed from the register of companies or placed
under judicial management, or takes any steps for its voluntary winding-up;
	 
	13.1.2	 	any third party takes any action, steps or proceedings (excluding frivolous or vexatious
actions, steps or proceedings) against the Borrower -
	 
	13.1.2.1	 	for compulsory, provisional or final sequestration, winding-up, liquidation, compromise,
administration order, curatorship, judicial management, dissolution, or administration;
	 
	13.1.2.2	 	for the appointment of a receiver, administrator, trustee, liquidator, judicial manager
or similar officer or of any or all of the Borrower’s assets or revenues;
	 
	13.1.3	 	if the auditors of the Borrower qualify the Financial Statements in any material respect;
	 
	13.1.4	 	a representation, warranty or statement made or repeated in or in connection with the
Finance Documents or in any document delivered by

 

Page 29

	 	 	or on behalf of the Borrower under or in connection with the Finance Documents is
incorrect in any material respect, when made or repeated;
	 
	13.1.5	 	if any material permit, approval, consent or license necessary for the continued business
operations of the Borrower is permanently withdrawn, revoked or cancelled and such
withdrawal, revocation or cancellation has or is reasonably likely to have a Material Adverse
Effect;
	 
	13.1.6	 	any material part of the Borrower’s undertakings, rights, revenues or assets is seized,
nationalised, expropriated, requisitioned or acquired, where such seizure, nationalisation,
expropriation, requisition or acquisition has or is reasonably likely to have a Material
Adverse Effect;
	 
	13.1.7	 	any event or series of events occurs which has or is reasonably likely to have a Material
Adverse Effect;
	 
	13.1.8	 	it becomes unlawful for the Borrower to perform its obligations under the Finance Documents
or the Finance Documents cease to be effective in accordance with their terms or the Borrower
repudiates under the Finance Documents or evidences an intention to repudiate such Finance
Document.
	 
	13.2	 	Forthwith upon the occurrence of an Event of Default and at any time thereafter, if such
event continues, the Lender shall, upon expiry of any applicable notice or grace period, be
entitled (but not obliged), without prejudice to any other rights which the Lender may have,
by notice to the Borrower to -
	 
	13.2.1	 	declare that all (or certain specified) obligations of the Lender in terms of this Agreement
shall be cancelled forthwith, whereupon the same shall be so cancelled; and/or

 

Page 30

	13.2.2	 	declare all amounts outstanding under this Agreement to be immediately due and payable,
irrespective of any terms or conditions otherwise applicable, whereupon the Borrower shall
forthwith repay same; and/or
	 
	13.2.3	 	exercise all or any of its rights in terms of all or any security held by it in respect of
the Borrower’s obligations; and/or
	 
	13.2.4	 	charge Default Interest in terms of clause 9.3; and/or
	 
	13.2.5	 	claim payment of such direct damages in terms hereof or at common law including, costs and
other amounts incurred in consequence of such Event of Default in terms of this Agreement.
	 
	13.3	 	The Borrower will be liable for, and shall pay upon demand, all reasonable out-of-pocket
expenses, including (without limitation) legal expenses (including costs on the de facto
scale as between attorney-and-client), charges and disbursements, incurred by the Lender in
recovering any amount owed to it by the Borrower or otherwise enforcing its rights in terms
of this Agreement.

	14	 	VOLUNTARY PRE-PAYMENT
	 
	14.1	 	The Borrower shall be entitled to voluntarily prepay the Facility Outstandings, at any time
for the duration of this Agreement, provided the Borrower gives the Lender 5 (five) business
day’s prior written notice, subject to the following terms and conditions -
	 
	14.1.1	 	any notice of prepayment shall be substantially in accordance with the Prepayment Advice
attached hereto as annexe “B”;
	 
	14.1.2	 	such notice, once given, shall be irrevocable; and

 

Page 31

	14.1.3	 	any pre-payment that is not equal to the whole of such Facility Outstandings shall be in an
amount equal to R50,000,000.00 (fifty million rand) or any multiple thereof.
	 
	14.2	 	Any pre-payment made by the Borrower in terms of this clause 14, shall not be subject to the
payment of any breakage costs.
	 
	14.3	 	Any amount pre-paid in accordance with the provisions of this clause 14 may not be redrawn.
	 
	15	 	RIGHT OF FIRST REFUSAL
	 
	15.1	 	The Borrower hereby grants the Lender the right of first refusal, in the event that the
Borrower wishes to enter into any cross-currency hedging transaction in respect of the
Harmony Note Issue, to match the structuring, pricing, terms and/or conditions of any such
hedging transaction.
	 
	15.2	 	The Borrower’s offer to the Lender shall -
	 
	15.2.1	 	be in writing and be delivered to the Lender at its domicilium address set out in clause 25
below;
	 
	15.2.2	 	be irrevocable and shall remain open for acceptance by the Lender for a period of 10 (ten)
business days after receipt thereof.

	16	 	PROOF OF INDEBTEDNESS
	 
	 	 	A certificate under the hand of any director or manager of the Lender (whose appointment as
such it shall not be necessary to prove), shall (in the absence of manifest error)
constitute prima facie proof of any amount (whether capital or Interest or other) payable
by the Borrower to the Lender in terms hereof and the fact that the same is due and payable
for all purposes and shall be sufficient proof of the contents thereof for the purposes of
provisional sentence

 

Page 32

	 	 	or summary judgement against the Borrower in any competent court and be treated as a liquid
document for such purpose.
	 
	17	 	FEES
	 
	17.1	 	The Borrower shall pay to the Lender a non-refundable Arranging Fee equal to 0.25% (zero
point two five percent) of the Capital Amount plus VAT (if applicable). The said fee will be
due on the Signature Date and payable by the Borrower to the Lender in full on the Advance
Date.
	 
	17.2	 	In the event that the Arranging Fee remains unpaid on the Advance Date, such amount will be
disbursed to the Lender from to the Bridge Loan Facility and shall be deemed to have been
advanced to the Borrower by the Lender on the Advance Date but withheld from the Advance in
settlement of the said fee.

	18	 	CHANGE IN CIRCUMSTANCES
	 
	18.1	 	If by reason of -
	 
	18.1.1	 	any Change in Law; or
	 
	18.1.2	 	any change in banking practice required by any monetary or fiscal authority, applicable to
the Lender, which is generally complied with by banks in South Africa; or
	 
	18.1.3	 	a requirement or a request (which is generally complied with by banks in South Africa) by
any statutory or monetary authority, to pay Taxes or other amounts whatsoever or to maintain
special deposits or reserve assets;
	 
	 	 	the-

 

Page 33

	18.1.4	 	cost to the Lender of making or maintaining the Bridge Loan Facility is increased or any
amounts received or receivable by the Lender under this Agreement is reduced; or
	 
	18.1.5	 	Lender’s rate of return on its capital is reduced by reason only of a change in the manner
in which it is required to allocate capital resources to its obligations under this Bridge
Loan Facility; or
	 
	18.1.6	 	Lender is required to make a payment or forego the return on or calculated by reference to
any amount received or receivable by it under this Bridge Loan Facility,
	 
	 	 	then, within 30 (thirty) days of a written demand by the Lender, the Borrower shall pay
to the Lender an additional amount as is sufficient to compensate the Lender for such
increased cost or reduction, payment or foregone return.
	 
	18.2	 	If by reason of -
	 
	18.2.1	 	any Change in Law; or
	 
	18.2.2	 	any change in banking practice required by any monetary or fiscal authority, which is
binding on the Lender,
	 
	 	 	the cost to the Lender of making or maintaining the Bridge Loan Facility is reduced,
then, the Lender shall -
	 
	18.2.3	 	forthwith after the payment in full of the Facility Outstandings, remit the after tax
amount of such Reduced Cost Benefit to the Borrower, together with an after tax amount equal
to the interest that would have accrued thereon had such amount been placed on cash deposit
with the principal bankers of the Lender from the date that the Reduced Cost Benefit was
enjoyed to the date of such payment to the Borrower; or

 

Page 34

	18.2.4	 	at the election of the Lender, if the Borrower has not effected payment of the
whole of the Facility Outstandings to the Lender, be entitled to set off the after
tax amount of such Reduced Cost Benefit against the amount of the Facility
Outstandings owing by the Borrower to it at that time, and remit any after tax amount
of such Reduced Cost Benefit remaining after such set off to the Borrower, together
with an after tax amount equal to the interest that would have accrued on such
remaining amount had such remaining amount been placed on cash deposit with the
principal bankers of the Lender from the date that the Reduced Cost Benefit was
enjoyed to the date of such payment to the Lender.
	 
	18.3	 	The Lender shall deliver a certificate setting out of the amount of such Increased Costs
incurred by or Reduced Cost Benefit accruing to the Lender to the Borrower. The aforesaid
certificate shall be executed by any manager of the Lender (whose authority and appointment
need not be proved) and shall, in the absence of manifest error, be prima facie proof of the
amount of the Increased Costs or the Reduced Cost Benefit, as the case may be, set out
therein, in accordance with the provisions of clause 14, mutatis mutandis.

	19	 	GROSS UP
	 
	 	 	Save where otherwise specifically provided herein, all payments by the Borrower under this
Agreement shall be made in rands and free and clear of any Taxes, except to the extent that
the Borrower is required by Law to make payment subject thereto. If any Tax or amount in
respect thereof must be deducted, or any other deductions must be made from any amounts
payable or paid by the Borrower under this Agreement, the Borrower shall pay such additional
amounts as may be necessary to ensure that the Lender receives a net amount equal to the full
amount which it would have received had payment not been made subject to such Tax or other
deduction.

 

Page 35

	20	 	TAX INDEMNITY
	 
	20.1	 	Subject to the provisions of clause 20.2, the Borrower hereby indemnifies the Lender against
any direct loss or liability which, in the reasonable discretion of the Lender (as evidenced
by the auditors for the time being of the Lender), will be suffered or has been suffered for
or on account of the application of Taxes in relation to any payment received or receivable
(or any payment deemed to be received or receivable) under the Finance Documents.
	 
	20.2	 	Clause 20.1 does not apply to any Taxes assessed on the Lender under Law, if those Taxes are
imposed on or calculated by reference to the net income, profits or gains actually received
by or accrued to the Lender. However, any payment deemed to be received or receivable,
including any amount treated as income but not actually received by the Lender (such as an
amount deducted or withheld for or on account of tax) will not be treated as net income
received or receivable for this purpose.
	 
	20.3	 	Notwithstanding the provisions of this clause if any Tax or amounts in respect of any Tax
(other than income tax or capital gains tax) must be deducted, or any withholdings or other
deductions must be made from any amounts payable or paid by the Borrower under the Bridge Loan
Facility, the Borrower, shall pay such additional amounts as may be necessary to ensure that
the Lender receives a net amount equal to the full amount which it would have received had
payment not been made subject to Tax or other withholding or deduction.
	 
	21	 	ILLEGALITY
	 
	 	 	If at any time after the Signature Date it is or becomes unlawful in any jurisdiction, or
contrary to any lawful and binding request from or requirement of the South African Reserve
Bank or other South African governmental

 

Page 36

	 	 	department or authority, for the Lender to perform any of its obligations under this
Agreement, then the Lender shall promptly after becoming aware of the same notify the
Borrower by way of a certificate signed by a director or manager of the Lender (or a person
of an equivalent or higher level of authority), whose appointment or designation it will not
be necessary to prove, to that effect and if the Lender so requires, the Borrower shall by
not later than such date as the Lender shall have specified (such date not being earlier
than 3 (three) months after the date of such certificate or such shorter period as may be
required by law) repay the relevant part of Bridge Loan Facility advanced to the Borrower by
the Lender in full together with any and all other amounts then due to the Lender under or
in terms of this Agreement.
	 
	22	 	AUTOMATIC RIGHT OF SET-OFF
	 
	 	 	All payments made by the Borrower under this Agreement must be made without set-off or
counterclaim.
	 
	23	 	RENUNCIATION OF BENEFITS
	 
	 	 	All the benefits from the legal exceptions of excussion, division, no value received, no
cause of debt, error in calculation and revision of accounts are expressly renounced by the
Borrower. The Borrower acknowledges that it is fully acquainted with the meaning and effect
of such renunciations.
	 
	24	 	BENEFIT OF THE AGREEMENT
	 
	 	 	This Agreement will be also for the benefit of and be binding upon the successors in title
and permitted assigns of the Parties or any of them.
	 
	25	 	NOTICES AND DOMICILIA
	 
	25.1	 	The Parties choose as their respective domicilia citandi et executandi for the purpose
of legal proceedings and for the purposes of giving or sending

 

Page 37

	 	 	any notice provided for or necessary in terms of this Agreement, the following addresses
and telefax numbers for each of them -

	 	 	 	 	 	 	 
	 	 	Name	 	Physical Address	 	Telefax
	 

	 	RMB
	 	1 Merchant Place
 Cnr Fredman Drive &
 Rivonia
Road 
Sandton
	 	+27 (0) 11 282 8328

	 	 	Marked for the attention of: Barry Martin

	 	 	 	 	 	 	 
	 	 	Name	 	Physical Address	 	Telefax
	 

	 	Borrower
	 	Block 27

Randfontein Ofice Park 

Cnr Main Reef and ward Avenue 

Randfontein
	 	+27 (0) 11 684 0188

	 	 	Marked for the attention of: The Company Secretary
	 
	25.2	 	provided that a Party may change its domicilium to any other physical address or telefax
number within South Africa by written notice to the other Party.
	 
	25.3	 	All notices to be given in terms of this Agreement will be in writing and will -
	 
	25.3.1	 	if delivered by hand during business hours, be rebuttably presumed to have been received on
the date of delivery. Any notice delivered after business hours or on a day which is not a
business day will be rebuttably presumed to have been received on the following business day;
and
	 
	25.3.2	 	if sent by telefax during business hours, be rebuttably presumed to have been received on
the date of successful transmission of the telefax. Any telefax sent after business hours or
on a day which is not a business day will rebuttably be presumed to have been received on the
following business day.
	 
	25.4	 	Notwithstanding the above, any notice given in writing, and actually received by the Party
to whom the notice is addressed, will be deemed to

 

Page 38

	 	 	have been properly given and received, notwithstanding that such notice has not been
given in accordance with the provisions of this clause 25.
	 
	26	 	SEVERABILITY
	 
	 	 	Each provision of this Agreement is severable from the other provisions. Should any
provision be found by a Court of competent jurisdiction to be illegal, invalid or
unenforceable for any reason, the Parties will consult with one another in good faith in
order to agree, if possible, an alternative provision in accordance with the intent and
tenor of this Agreement. The remaining provisions of this Agreement shall nevertheless
remain binding and continue with full force and effect.
	 
	27	 	GENERAL
	 
	27.1	 	This Agreement constitutes the whole of the agreement between the Parties relating to the
matters dealt with herein and, save to the extent otherwise provided herein, no undertaking,
representation, term or condition relating to the subject matter of this Agreement not
incorporated in this Agreement will be binding on either of the Parties.
	 
	27.2	 	No variation, addition, deletion, or agreed cancellation will be of any force or effect
unless in writing and signed by or on behalf of the Parties. Failure or delay on the part of
any of the Parties in exercising any right, power or privilege hereunder will not constitute
or be deemed to be a waiver thereof, nor will any single or partial exercise of any right,
power or privilege preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.
	 
	27.3	 	This Agreement may be executed in one or more counterparts, each of which will be deemed an
original, and all of which together will constitute

 

Page 39

	 	 	one and the same agreement as at the date of signature of the Party last signing one of
the counterparts.
	 
	28	 	INDEPENDENT ADVICE
	 
	28.1	 	The Borrower acknowledges and agrees that it has not relied in any way upon any information
and/or advice given by the Lender in the preparation, negotiation and/or implementation of
this Agreement and that it has taken all reasonable actions to satisfy itself as to the
consequences of entering into this Agreement.
	 
	28.2	 	The Borrower acknowledges that -
	 
	28.2.1	 	it has been free to secure independent legal and other advice as to the nature and effect
of all the provisions of this Agreement and the other Finance Documents, and that it has
either taken such independent legal and other advice or dispensed with the necessity of doing
so; and
	 
	28.2.2	 	all of the provisions of this Agreement and the other Finance Documents, and the
restrictions herein contained, are fair and reasonable in all the circumstances and are part
of the overall intention of the Parties in connection with this Agreement and the other
Finance Documents.
	 
	29	 	APPLICABLE LAW AND JURISDICTION
	 
	29.1	 	This Agreement will in all respects be governed by and construed under the laws of South
Africa.
	 
	29.2	 	The Parties hereby consent and submit to the non-exclusive jurisdiction of the Witwatersrand
Local Division of the High Court of the Republic of South Africa in any dispute arising from
or in connection with this Agreement. The

 

Page 40

	 	 	Parties agree that any costs awarded will be recoverable in accordance with the High
Court tariff, determined on an attorney-and-own-client scale.
	 
	30	 	COSTS
	 
	30.1	 	Save as may be otherwise provided herein, each of the Parties will bear and pay its own
legal costs of or incidental to the negotiation, drafting, preparation and execution of this
Agreement and any amendment thereof.
	 
	30.2	 	The Borrower agrees and undertakes to reimburse the Lender on demand with any and all
reasonable costs and expenses (including legal costs on the de facto scale as between
attorney-and-client) which the Lender may at any time incur in or about the exercise of any of
its rights against the Borrower in terms of the Finance Documents, including collection
commission, tracing fees, valuation charges, transport costs and other reasonable expenses in
connection therewith.
	 
	30.3	 	If any amount payable to the Lender in terms of this Agreement is stated as being exclusive
of VAT, then the Borrower will in addition to the stated amount pay any VAT thereon to the
Lender, against delivery by the Lender to the Borrower of a valid tax invoice in respect
thereof.
	 
	31	 	SIGNATURE
	 
	 	 	Signed on behalf of the Parties as set out below, each signatory hereto warranting that he or
she has due authority to do so -

 

Page 41

	 	 	 	 	 
	SIGNED at              
                                                              on                  
                                                   2007.	 	 
	 

	 	For and on behalf of

FIRSTRAND BANK LIMITED (acting 

through its Rand Merchant Bank 

division)	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	Signature:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	Name of Signatory:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Designation of Signatory:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name of Signatory:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Designation of Signatory:	 	 
	 
	 	 	 	 
	SIGNED at               
                                                              on
                                                                    2007.	 	 
	 

	 	For and on behalf of

HARMONY GOLD MINING COMPANY 

LIMITED	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 
	 	Signature:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name of Signatory:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Designation of Signatory:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name of Signatory:	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Designation of Signatory:	 	 

 

ANNEXE “A”

EXTENSION NOTICE

From: [Borrower]

To: [Lender]

Dated: [•]

Dear Sirs

SENIOR BRIDGE LOAN FACILITY AGREEMENT DATED [•] 2007 (“SENIOR BRIDGE LOAN FACILITY AGREEMENT”)

We refer to the Senior Bridge Loan Facility Agreement.

Terms defined in the Senior Bridge Loan Facility Agreement have the same meaning in this Extension
Notice.

Please be advised that, in accordance with the provisions of clause 8 of the Senior Bridge Loan
Facility Agreement, we hereby exercise our right to extend the date for repayment of the Facility
Outstandings to the Extended Repayment Date (i.e. 30 September 2007).

We hereby acknowledge that Interest will, during the Extended Interest Period, be calculated at the
Extended Period Interest Rate in accordance with the provisions of clause 8.2 of the Senior Bridge
Loan Facility Agreement.

This Extension Notice is irrevocable.

This Extension Notice is governed by the laws of South Africa.

Yours faithfully

 

Authorised Signatory for the Borrower

 

 

ANNEXE “B”

PREPAYMENT ADVICE

From: [Borrower]

To: [Lender]

Dated: [•]

Dear Sirs

SENIOR BRIDGE LOAN FACILITY AGREEMENT DATED [•] 2007 (“SENIOR BRIDGE LOAN FACILITY AGREEMENT”)

We refer to the Senior Bridge Loan Facility Agreement.

Terms defined in the Senior Bridge Loan Facility Agreement have the same meaning in this Prepayment
Advice unless given a different meaning in this Prepayment Advice.

We hereby advise of a pre-payment under the Bridge Loan Facility on the following terms -

	 	 	 
	Proposed Pre-Payment Date:

	 	[•] (or, if that is not a business day, the next business day)
	 
	 	 
	Amount:

	 	[•]

This Prepayment Advice is irrevocable.

This Prepayment Advice is governed by the laws of South Africa.

Yours faithfully

 

Authorised Signatory for the Borrowerexv4w21

 

Exhibit
4.21

Master Lease Facility Agreement

Morobe Consolidated Goldfields Limited

Westpac Bank PNG Limited

Hidden Valley Gold Project

Allens Arthur Robinson

Deutsche Bank Place

Corner Hunter and Phillip Streets

Sydney NSW 2000

Tel 61 2 9230 4000

Fax 61 2 9230 5333

www.aar.com.au

© Copyright Allens Arthur Robinson 2007

1

 

	 	 	 	 	 	 	 	 
	Date

	 	 	 	 	 	 	 2007
	 	 	 	 
	 
	 	 	 	 	 	 	 
	Parties
	 	 	 	 	 	 	 
	 	 	 	 
	 

	 	 	1.	 	 	 	Morobe Consolidated Goldfields Limited incorporated in Papua New Guinea of Level 4, Mogoru Moto
Building, Champion Parade, (PO Box 850) Port Moresby, Papua New Guinea (the Lessee); and
	 
	 	 	 	 	 	 	 
	 

	 	 	2.	 	 	 	Westpac Bank PNG Limited of Level 9, Deloitte Tower, Douglas Street, Port Moresby NCD, Papua New Guinea
as lessor under the Master Lease Agreement (Westpac).
	 
	 	 	 	 	 	 	 
	Recitals
	 	 	 	 	 	 	 
	 	 	 	 
	 

	 	 	A	 	 	 	As arranged by Westpac Institutional Bank, a division of Westpac Banking Corporation (the Arranger)
Westpac Bank PNG Limited (Westpac) is pleased to offer Morobe Consolidated Goldfields Limited (the
Lessee) a master lease facility on the following terms.

Capitalised terms used in this Agreement are defined in the text or in Schedule 1 unless the
context requires otherwise. They will be interpreted on the basis set out in Schedule 1.

MASTER LEASE DETAILS

	 	 	 
	Lessee:

	 	Morobe Consolidated Goldfields Limited.
	 
	 	 
	Facility Limit:

	 	US$31,000,000 as reduced or cancelled under clauses 2.3 and 4.3.
	 
	 	 
	Term:

	 	This master lease facility will expire on 30 June 2013 or such
other date agreed between the parties and is terminable on
notice by Westpac following an Event of Default. That does not
affect any Lease previously entered into under this master
lease facility.
	 
	 	 
	 

	 	Individual Leases shall have a term not exceeding five (5)
years and 91 days from the Delivery Date.

2

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

	1.	 	THE FACILITY

1.1 Facility

Provided the facility provided under this Agreement has not been terminated and has not expired,
the Lessee can require Westpac to let equipment for hire to the Lessee on the terms of this
facility on any Business Day. The Lease will be substantially in the form of Schedule 5. The rate
and period of each Lease will be as set out in the Details Schedule of the relevant Lease.

1.2 Conditions Precedent

1.2.1 The obligations of Westpac under this Agreement are subject to the fulfilment of the
following conditions precedent, namely

1.2.1.1 the Lessee must:

	w	 	sign and return a copy of this Agreement to Westpac;
	 
	w	 	provide to Westpac a duly executed copy of the Intercreditor Deed and certified copies of each Project Document
which has been entered into on or before the date of this Agreement;
	 
	w	 	deliver a verification certificate to Westpac dated no later than the date of this Agreement substantially in the
form of Schedule 4A with the required attachments;
	 
	w	 	procure that HGMC and HGM each delivers a verification certificate to Westpac dated no later than the date of this
Agreement substantially in the form of schedule 4B with the required attachments;
	 
	w	 	provide evidence to Westpac that all Authorisations and consents necessary for each party to enter into and
perform its obligations under the Bank Documents have been obtained and are in full force and effect;
	 
	w	 	provide evidence to Westpac that all shareholder loans to the Lessee outstanding prior to the date of this
Agreement have been converted to equity;
	 
	w	 	provide evidence (including providing certificates of currency for each insurance policy) to Westpac that the
Equipment has been or will be insured in accordance with clause 6.7 of schedule 3 (Schedule of Lease Terms);
	 
	w	 	provide to Westpac the Deed of Assignment, duly executed by all parties to it (except Westpac);
	 
	w	 	procure that Komatsu duly executes the Komatsu Guarantee and deliver a certified copy to Westpac;

each to the satisfaction of, or (where relevant) in form and substance satisfactory to, Westpac.

1.2.1.2 Westpac must:

	w	 	be satisfied as to the financial capability of Komatsu to support the obligations that arise as
guarantor of the Contractor under the Sell Back Option and the Maintenance Contract and its own
obligations under the Komatsu Guarantee;
	 
	w	 	be satisfied as to the financial capability of the Contractor to support its own obligations under the
Sell Back Option and the Maintenance Contract;
	 
	w	 	be satisfied with Project economics as evidenced by the Financial Model and mine plan as at the date
of execution of this Agreement;
	 
	w	 	be satisfied that the Project complies with the World Bank Guidelines;
	 
	w	 	procure from Allens Arthur Robinson in Port Moresby and Sydney opinions as to the Bank Documents and
their enforceability under New South Wales, Australian and Papua New Guinea law, which opinion shall
be in form and substance satisfactory to Westpac;

3

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

	w	 	receive from the Lessee an opinion procured by the Lessee from Legal counsel approved by Westpac as to:

	 	(a)	 	Singapore law in relation to the Komatsu Guarantee;
	 
	 	(b)	 	South African law in relation to HGMC’s entry into the Intercreditor Deed; and
	 
	 	(c)	 	Isle of Man law in relation to the Project Lender’s entry into the Intercreditor
Deed,

	 	 	which opinions shall be in form and substance satisfactory to Westpac; and

	w	 	receive from the Lessee such other information as may reasonably be requested by Westpac
and Westpac must be satisfied with that information.

1.2.2 Each Lease is subject to and shall not commence until the fulfilment (or waiver by Westpac in
its absolute discretion) of the following conditions precedent, namely, the Lessee must:

	w	 	provide Westpac with a completed and duly executed Lease Request in accordance with clause 2.2;
	 
	w	 	pay the Order Instalment in respect of that item of Equipment to Westpac on or before the Order Date for that item;
	 
	w	 	provide Westpac with completed and executed equipment documentation in respect of the relevant item of Equipment;
	 
	w	 	either:

	 	(i)	 	provide to Westpac cash security to the satisfaction of Westpac equivalent to 12
months Rent Instalments (at a rate to be advised by Westpac calculated assuming that
Leases are entered into for the full Facility Limit with a Base Rate as for the Term
Instalments and assuming the Delivery Date is the date on which the relevant Lease is
prepared); or
	 
	 	(ii)	 	provide Westpac with a certificate signed by 2 directors of the Lessee indicating
that the Project is fully funded to date and there are available sufficient funds to
satisfy the financial requirements of the Project to Project Completion;

	w	 	in respect of the first Lease only following the entry into a new Maintenance Contract with a new maintenance
contractor, provide a certified copy of that Maintenance Contract to Westpac and satisfy Westpac as to the financial
capacity of the new maintenance contractor to perform its obligations under the new Maintenance Contract;
	 
	w	 	provide to Westpac certified copies of each Project Document which has not already been provided under clause 1.2.1.1
(other than the Project Loan Agreement and Project Charge);
	 
	w	 	provide evidence to Westpac of the payment of all fees and expenses which are due; and
	 
	w	 	provide Westpac with the financial statements and financial information for the Lessee and HGMC and such other
information in relation to the Lessee, or any other party to the Bank Documents or the Project Documents as may
reasonably be requested by Westpac and Westpac must be satisfied with that information;

each to the satisfaction of, or (where relevant) in form and substance satisfactory to, Westpac and
at the date of the Drawdown Notice:

	w	 	no Event of Default is subsisting or will result from the
drawdown, or event which with notice or time would become an Event
of Default;
	 
	w	 	no event or change has occurred to the Lessee or any other party
to the Bank Documents or the Project Documents that has or would
be likely to have a Material Adverse Effect;
	 
	w	 	drawdown will not cause the Facility Limit to be exceeded; and
	 
	w	 	each representation and warranty in the Bank Documents is true and
correct in all material respects and not misleading nor deceptive
in any material respect as of the date of the

4

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

	 	 	drawdown and the date of purchase.

1.2.3 The parties shall use their respective reasonable endeavours to satisfy the conditions
precedent in clause 1.2.1 as soon as practicable after the execution of this Agreement. Each party
shall notify the other party as soon as practicable after each condition precedent has been
satisfied or fulfilled by such party and Westpac shall give notice to the Lessee when all of the
conditions precedent in clause 1.1.1 have been satisfied or waived. The conditions are for the
benefit of Westpac and may be waived in whole or in part by Westpac by notice to the Lessee in
writing. The Lessee shall bear the reasonable costs of procuring the opinions described in clause
1.2.1.2.

1.2.4 If the conditions precedent in clause 1.2.1 are not each satisfied or waived within 30 days
from the date of execution of this Agreement (or such later date as the parties may agree in
writing) then either party shall have the right to immediately terminate this Agreement by giving
written notice to the other party to that effect. If the Agreement is terminated in accordance with
this clause, no party will have any further obligation to the other parties and the parties will
have no claim against each other, except, in the case of Westpac any claim against the Lessee in
respect of outstanding fees, costs and expenses under clause 4 of this Agreement or indemnities
under clause 5.4 of the Lease Terms.

	2.	 	LEASING PROCEDURES

	2.1	 	Purchase of Equipment

	 	*	 	(Order) The Equipment shall be ordered by the Lessee in accordance with the Supply
Contract.
	 
	 	*	 	(purchase) The Equipment shall be purchased by Westpac in accordance with the
Supply Contract.
	 
	 	*	 	(title) Property in Equipment purchased under this Agreement shall pass directly
from the Contractor to Westpac.
	 
	 	*	 	(payment of purchase price) Subject to the fulfilment of the conditions precedent
in clause 1.2.2:

	 	(a)	 	Westpac must pay the Order Instalment to the Contractor on the Order
Date;
	 
	 	(b)	 	and the receipt by Westpac on or before the Shipping Date of the
Drawdown Notice for the Shipping Instalment, the relevant Contractor’s invoice and
Bill of Lading in respect of the relevant item of Equipment and the Escrow Portion
and 15% of the Estimated PNGP from the Lessee, Westpac must pay the Shipping
Instalment to the Contractor on the Shipping Date; and
	 
	 	(c)	 	and the receipt by Westpac of the Drawdown Notice for the PNGP, the
relevant Contractor’s invoice from the Lessee and a copy of the relevant Handover
Certificate and the PNGP Adjustment (if owing to Westpac in accordance with clause
5.10(a)), Westpac must pay the PNGP to the Contractor.

	 	*	 	(escrow portion) Westpac will hold the Escrow Portion in escrow and pay the Escrow
Portion to the Contractor in accordance with the provisions of the Supply Contract.
	 
	 	*	 	(Estimated PNGP) On or before the Shipping Date, the Lessee shall provide Westpac
with all information with regard to the PNGP received from the Contractor and any other
relevant information in that regard and Westpac and the Lessee shall agree the Estimated
PNGP on the basis of such information.

5

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

	2.2	 	Lease Request

	 	.	 	When the Lessee wishes to lease an item of Equipment the Lessee shall give to
Westpac a Lease Request on or prior to the Order Date. The Lease Request shall request
that Westpac prepares a Lease for the relevant item of Equipment and the Lessee shall
provide Westpac with the information described in clause 1.2.2.
	 
	 	.	 	Westpac shall prepare the Lease if the conditions precedent in clause 1.2.2 have
been satisfied and deliver it to the Lessee.
	 
	 	.	 	Following receipt of the Lease from Westpac, the Lessee shall promptly sign and
return it to Westpac. If the person who signs the Lease is not a person referred to in
the verification certificate, the Lessee must supply evidence satisfactory to Westpac of
the authority of that person.
	 
	 	.	 	When the Lessee wishes to make a drawing in respect of an item of Equipment, the
Lessee shall give to Westpac a Drawdown Notice. That Drawdown Notice must be received by
Westpac by 11.00am (Port Moresby time) 3 Business Days (or such shorter period as Westpac
may agree) before the proposed Drawdown Date which must be a Business Day during the
Availability Period.
	 
	 	.	 	On the proposed Drawdown Date but only if all requirements of this Agreement have
been satisfied including the conditions precedent in clause 1.2.2, Westpac will make
available to the Lessee the amount requested in the Drawdown Notice up to a maximum (in
aggregate with any other Drawdown Notice in respect of the same item of Equipment) of the
Funded Amount
	 
	 	.	 	The Lessee shall ensure that there is delivered to Westpac no later than the
Drawdown Date if required, a tax invoice for the Equipment which satisfies any applicable
requirements (if any) of Westpac.

	2.3	 	Form of Lease

	 	*	 	Each Lease will be in substantially the form of Schedule 5.
	 
	 	*	 	The Base Rate for the Rent Instalments will be as set out in Schedule 5 (item 12).
	 
	 	*	 	The Term Instalments will be specified in the Details Schedule, and will be
determined by Westpac having regard to its normal procedures, but so as to achieve a
limit in the total underlying principal amount of all Leases so that the aggregate does
not exceed the following amounts on the following dates:

	 	 	 
	Reduction Date	 	Limit
	Initial
	 	$31,000,000
	June 30, 2009
	 	$26,000,000
	March 31, 2010
	 	$21,000,000
	December 31, 2010
	 	$16,000,000
	September 30, 2011
	 	$11,000,000
	June 30, 2012
	 	$6,000,000
	March 31, 2013
	 	$1,000,000

	 	 	 	On the dates specified above, the Facility Limit will be reduced and cancelled as set
out in the table above.

6

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

	2.4	 	General
	 
	 	 	Notwithstanding any other provisions of this Agreement:

	 	.	 	The Lessee is responsible for ensuring that Westpac obtains
good and unencumbered title to all Equipment purchased pursuant to
this clause.
	 
	 	.	 	The Lessee cannot commit Westpac to any contract with an
obligation to another party. Its authority is only to acquire a good
and unencumbered title in Equipment for Westpac.
	 
	 	.	 	The Lessee will indemnify Westpac on demand against any
liability, cost or expense incurred in connection with any defect in
Westpac’s title to any Equipment the subject of a Lease.

	2.5	 	Authority
	 
	 	 	The Lessee is bound by:

	 	.	 	any document or communication bearing a signature that appears to Westpac to be one
of the specimen signatures of the Lessee; and
	 
	 	.	 	anything done by Westpac in accordance with this Agreement.

	 	 	The Lessee irrevocably authorises Westpac (if the Lessee fails to do so or does so
incorrectly) to prepare, complete, amend, execute and deliver on behalf of the Lessee each
Lease.

	2.6	 	Exclusivity
	 
	 	 	The parties agree to deal on an exclusive basis with respect to the
provision of finance with regard to the Equipment described in the
Supply Contract.

	3.	 	REPRESENTATIONS AND UNDERTAKINGS

The Lessee makes the representations and warranties and gives the undertakings in Schedule 2.

	4.	 	FEES AND EXPENSES

	4.1	 	Establishment Fee
	 
	 	 	On the date of this Agreement the Lessee will pay the Arranger an establishment fee of
US$450,000 as set out in the mandate letter dated 21 November 2005 from the Arranger to
Harmony Gold (Australia) Pty Limited. Westpac acknowledges that $300,000 of the
establishment fee has already been paid prior to the date of this Agreement.
	 
	4.2	 	Line Fee
	 
	 	 	The Lessee will pay Westpac a line fee which will accrue from day to day from the date of
this Agreement on the amount of the Facility Limit, calculated at a rate of 1.5% per annum.
The Lessee shall pay that fee in arrears on the last Business Day on each calendar quarter
and on the day the Facility Limit is cancelled.
	 
	4.3	 	Cancellation of Facility Limit
	 
	 	 	The Lessee may at any time on not less than 5 Business Bays notice cancel all or part of the
unutilised Facility Limit. Westpac may cancel all or part of the Facility Limit at any time
an Event of Default under any Lease is subsisting.

7

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

	4.4	 	Expenses
	 
	 	 	The Lessee will pay Westpac and the Arranger on demand all costs and expenses (including
legal expenses) incurred by Westpac and the Arranger in connection with the preparation,
negotiation and execution of the Master Lease Agreement and any Lease, and of any waiver or
consent, including the valuation of Equipment and considering conditions precedent.
	 
	5.	 	AGENCY

	 	(a)	 	Pursuant to the execution of the Deed of Assignment, the Lessee has assigned
the Assigned Property to Westpac.
	 
	 	(b)	 	Westpac appoints the Lessee as its sole agent, until termination under
paragraph (f), to exercise on behalf of Westpac all of the rights in respect of the
Assigned Property (unless otherwise specified).
	 
	 	(c)	 	Until the agency in paragraph (b) is terminated in accordance with paragraph
(e), the Lessee is entitled to retain when made any recovery or benefit resulting from
the enforcement of any such rights and will pay, and indemnifies, Westpac against, all
costs, expenses, liabilities, losses and charges incurred in connection with the
enforcement or purported enforcement of any such rights.
	 
	 	(d)	 	The Lessee agrees to promptly and effectively enforce all claims and rights
referred to in paragraph (a) at all times during the term of its appointment under
paragraph (b) in relation to an item of Equipment where the non-enforcement or delayed
enforcement of a claim or right might result in a material diminution in the value,
condition or utility of that item of Equipment.
	 
	 	(e)	 	If the Lease is terminated under clause 9.1, after an Event of Default occurs
or at any other time, Westpac may terminate or limit the agency created by this clause
by written notice to the Lessee specifying the date of such termination or limitation
(and providing details of any limitation in the Lessee’s exercise of its agency powers
under paragraph (b)).
	 
	 	(f)	 	The Lessee agrees to promptly and duly execute and deliver any and all such
further documents or agreements and take such further action as may be necessary or
desirable in order to give full effect to the assignment under this clause.

	6.	 	SCHEDULE OF LEASE TERMS

	*	 	The Lease Terms apply to each Lease as if a reference to this Lease in that schedule is a
reference to the particular Lease.
	 
	*	 	Clauses 5.1 to 5.6 (inclusive), 5.9, 8.1 and 10 of the Lease Terms apply to this Agreement as
if a reference to this Lease were a reference to this Agreement.

8

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

Executed as an agreement:

Signed for WESTPAC BANK PNG LIMITED by its attorney under the authority of a power of attorney.

	 	 	 
	 

(sign here)

	 	 
	I have no notice of the revocation of the power of attorney.
	 	 
	 
	 	 
	Name:
	 	 
	Attorney
	 	 
	 
	 	 
	Signed by:
	 	 
	Morobe Consolidated Goldfields Limited
	 	 

	 	 	 	 	 
	 

(sign here)

	 	 

(sign here)
	 	 
	 
	 	 	 	 
	Title: Director/Secretary

	 	Title: Director	 	 
	 
	 	 	 	 
	Name (please print):

	 	Name (please print):	 	 
	 
	 	 	 	 
	Date of execution:
	 	 	 	 

We confirm:

The Company is solvent. It is not prevented by any
provision of the Companies Act 1997 (PNG) from
entering into and performing the Document. We hold
the offices stated under our signatures. We are
authorised to sign the accepted agreement(s).

9

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 1

SCHEDULE OF DEFINITIONS AND INTERPRETATION

Definitions

Agreement includes any document or instrument of any kind, any deed, agreement or arrangement.

Assigned Property has the meaning given in the Deed of Assignment.

Authorisation includes:

	(a)	 	any consent, registration, filing, lodgement, agreement, certificate, notarisation,
permission, licence, approval, authority or exemption, from by or with any Governmental
Agency; and
	 
	(b)	 	where a Governmental Agency can prohibit or restrict something if it acts within a specified
period after formal notification of it (for example lodgement, registration or filing), the
expiry of that period without that action.

Authorised Officer means

	(a)	 	in respect of the Lessee any director, secretary or attorney, or any person from time to time
nominated as an Authorised Officer by its by a notice to Westpac accompanied by certified
copies of signatures of all new persons so appointed; and
	 
	(b)	 	in respect of Westpac, any person whose title or acting title includes the word Chief,
Counsel, Executive Head, Manager, Director or President or cognate expressions, or any
secretary or director.

Availability Period means the period from the date of satisfaction of the conditions precedent in
clause 1.2.1 until 30 June 2008 (or such longer period as Westpac and the Lessee agree).

Bank Document means:

	(a)	 	the Master Lease Agreement;
	 
	(b)	 	any Lease entered into under the Master Lease Agreement;
	 
	(c)	 	the Komatsu Guarantee;
	 
	(d)	 	the PRI Policy;
	 
	(e)	 	the Intercreditor Deed;
	 
	(f)	 	the Sell Back Option;
	 
	(g)	 	the Deed of Assignment;
	 
	(h)	 	the Supply Contract;
	 
	(i)	 	any Maintenance Contract; or
	 
	(j)	 	any other document agreed to by Westpac and the Lessee from time to time.

It includes any amendment or replacement of any of them or document issued under any of them.

Base Rate means the rate specified in the relevant Details Schedule.

Business Day means any weekday on which Westpac is open at the address referred to on the first
page of the Master Lease Agreement and banks are open in New York and Sydney.

Casualty and Termination Value means, in relation to any Equipment at any time, the amount
calculated by Westpac using the method specified in item 16 of the Details Schedule.

CIF Lae Portion means the purchase price for any Equipment paid to the Contractor under the Supply
Contract covering ex-factory costs, insurance and freight to Lae.

Compensation Agreement means the compensation agreement dated 5 August 2005 between the Lessee and
the landowner of the Mining Easement.

Contractor means UMW Niugini Limited.

10

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

Deed of Assignment means a Deed in the form of Schedule 7

Details Schedule means the schedule so named set out in each Lease.

Delivery Date means, in respect of an item of Equipment, the date on which a Handover Certificate
is signed by the Lessee and the Contractor in accordance with the terms of the Supply Contract.

Drawdown Date means, in relation to any Equipment, the date on which Westpac is to provide any part
of the Funded Amount under this Agreement.

Drawdown Notice means a notice in the form of Schedule 6.

Environmental Law means a law which relates to an aspect of the environment, planning, health or
safety.

Equipment means the Equipment described in the Supply Agreement or any Drawdown Notice or Details
Schedule (as the context requires) and includes all log books and other documentation and licences
and all parts and components relating to the Equipment.

Escrow Portion means 5% of the CIF Lae Portion.

Estimated PNGP means PNGP estimated at the Shipping Date, based on information provided by the
Contractor and agreed between the Lessee and Westpac.

Event of Default means anything listed in Clause 3 of Schedule 2.

Expiry Date means 30 June 2013 (or such other date agreed between the Lessee and Westpac).

Finance Debt includes:

	(a)	 	any indebtedness, present or future, actual or contingent in relation to money borrowed or
raised or any other financing;
	 
	(b)	 	any such indebtedness under or in respect of any of the following: a Guarantee, a discounting
arrangement, a finance lease or similar agreement, hire purchase, deferred purchase price (for
more than 90 days), or an obligation to deliver property or provide services paid for in
advance by a financier; and
	 
	(c)	 	exposure under any interest, commodity, securities, index, or currency exchange, option,
hedge, swap or other similar arrangement.

Financial Model means the cash flow model used in the Lessee’s submission of its financing plan to
the Bank of PNG and provided to Westpac by the Lessee on 29 March 2007 under clause 1.2.1.2 of this
Agreement (file name MCG Cash Flow Model IOM BDW FINAL BPNG.xls) as updated or varied from time to
time by agreement between Westpac and the Lessee.

Funded Amount means, in respect of any item of Equipment, the Shipping Instalment plus 85% of the
PNGP as set out in the relevant Details Schedule.

Governmental Agency includes any government, or any government, semi-government or judicial agency
or authority.

GST means goods and services tax, value added tax or any other indirect tax in respect of the
supply, acquisition or consumption of Equipment/services.

Guarantee means any guarantee, indemnity, letter of comfort or other assurance against loss,
including any obligation to be responsible for the solvency or financial condition of another
party, or for payment of a debt or obligation of another party, either directly or indirectly (for
example, by acquiring the debt or obligation).

Handover Certificate has the meaning given in the Supply Contract.

HGM means HGM (Isle of Man) (Pty) Limited (company number 116712C) of 15 – 19 Athol Street,
Douglas, Isle of Man, IM1 1LB.

HGMC means Harmony Gold Mining Company Limited (company number 1950/038232/06) of Harmony Main
Offices, Remainder of Portion 3 of the Farm Harmony Farm 222, Private road, Glen Harmony, Virginia
9430, Free State, Republic of South Africa.

Intercreditor Deed means the intercreditor deed between Westpac, the Arranger, HGM (Isle of Man)
(Proprietary) Limited, HGMC and the Lessee dated on or about the date of the Master Lease
Agreement.

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Consolidated Goldfields Limited - Master Lease Agreement

Interest Rate means the Base Rate plus the Margin.

Komatsu means Komatsu Asia and Pacific Private Limited (company number 197100057R) a company
incorporated in Singapore of 1 Gul Avenue, Off Benoi Road, Jurong Point, Singapore 629648.

Komatsu Guarantee means the Guarantee in the form of annexure A to Schedule J of Part 3 of the
Supply Contract.

Lease means a lease entered into under this Agreement.

Lease Request means a notice in the form of Schedule 8.

Lease Terms means the Schedule of Lease Terms set out in Schedule 3.

Maintenance Contract means the maintenance of mining equipment contract dated 22 November 2006 for
the maintenance of the Equipment between the Lessee and the Contractor.

Margin means:

	(a)	 	on each day until Project Completion, 1.25% per annum; and
	 
	(b)	 	on that day and each day subsequently, 0.80% per annum.

Master Lease Agreement means the master lease facility agreement between Westpac and the Lessee to
which this schedule is attached (and includes all schedules).

Material Adverse Effect means a material adverse effect on the financial or business condition of
the Lessee, its ability to meet its payment obligations under the Bank Documents, any Equipment, or
the security or rights of Westpac or the title of Westpac to any Equipment.

Memorandum of Agreement means the Memorandum of Agreement relating to the Hidden Valley Gold
Project dated 5 August 2005 between the Lessee, the State of Papua New Guinea, Morobe Provincial
Government, Wau Rural Local Level Government and Wau Bulolo Urban Local Government.

Mining Easement means the mining easement (ME 82) granted or to be granted by the Minister
responsible for mining in Papua New Guinea on the recommendation of the Mining Advisory Council of
Papua New Guinea.

Mining Easement Application means the application dated 4 December 2006 to the Department of Mining
in Papua New Guinea to register the Mining Easement and related documentation.

Mining Lease means the Mining Lease (M151) dated 4 March 2005.

Order Date means the date upon which the Lessee places an order for an item of Equipment with the
Contractor under the Supply Contract.

Order Instalment means 10% of the CIF Lae Portion in respect of the relevant item of Equipment.

PNGP or Papua New Guinea Portion means the inland transport, handling, dis-assembly and re-assembly
costs in respect of any item of Equipment in Papua New Guinea.

Premises means any premises stated in the Details Schedule of this Lease.

PRI Policy means the Political Risk Insurance Policy (cover Note No. CP 3642506) dated 3 August
2006 issued in favour of HGMC by the Heath Lambert Group including the endorsement titled Cover
Note Addendum No.1 dated 13 November 2006 and Cover Note Addendum No.2 dated 18 April 2007 and any
other endorsements on the policy from time to time.

Principal Outstanding means the aggregate of the present value of unpaid Rent Instalments and
Residual Value discounted at the relevant rate implicit in each Lease.

Proceeds Account means an account of the Lessee entitled “Hidden Valley Gold Proceeds Account” with
Westpac Banking Corporation (New York branch) or any other account which Westpac and the Lessee
agree is the Proceeds Account for the purposes of a Lease.

Project means the Hidden Valley Gold Project (or Hidden Valley Project) in Morobe Province, Papua
New Guinea in terms of which the Lessee shall fund, design, procure, construct and commission a
mine on its Hidden Valley Tenements (as defined in the Project Loan Agreement) and conduct mining,
mineral processing and related operations thereon.

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Project Charge means the charge in the form of schedule 10 to be granted by the Lessee in favour of
the Project Lender to secure its obligations under the Project Loan Agreement.

Project Completion means date upon which the Lessee has satisfied Westpac that the Project has
achieved for any consecutive 3 (three) month period a rolling monthly average gold production of
not less than 19,000 ounces per month.

Project Document means:

	(a)	 	the Compensation Agreement;
	 
	(b)	 	the Memorandum of Agreement;
	 
	(c)	 	the Project Loan Agreement;
	 
	(d)	 	the Project Charge;
	 
	(e)	 	the Mining Lease;
	 
	(f)	 	the Mining Easement, or if such easement has not been granted, the Mining Easement
Application;
	 
	(g)	 	the Sell Back Option;
	 
	(h)	 	any Maintenance Contract;
	 
	(i)	 	the Supply Contract;
	 
	(j)	 	the PRI Policy;
	 
	(k)	 	the Komatsu Guarantee;
	 
	(l)	 	any Authorisation necessary for the Lessee to execute and perform its obligations in
accordance with any agreement or security relating to this Agreement or in connection with the
Project, including all necessary approvals from Papua New Guinea Central Bank (including for
offshore bank accounts) and an environment permit under the Environment Act 2000 (PNG);
	 
	(m)	 	any document issued under any Project Document; or
	 
	(n)	 	any other document agreed to by Westpac and the Lessee from time to time and any amendment or
replacement of any of them or any document issued under any of them.

Project Lender means HGM.

Project Loan Agreement means the loan agreement in the form and in the amount in schedule 9 to be
entered into between the Lessee and the Project Lender.

Rent Instalment means all rental owing, or to become owing, by the Lessee to Westpac under a Lease.
The amount of Rent Instalment is as stated in the relevant Details Schedule as adjusted or varied
under the Lease.

Rent Instalment Date has the meaning given in the Details Schedule.

Residual Value means the amount stated in the relevant Details Schedule or any other amount agreed
between Westpac and the Lessee in writing (as adjusted or varied under the Lease).

Security Interest includes any mortgage, pledge, lien, charge or other security or any arrangement
which gives a creditor a preferential right to an asset or its proceeds.

Sell Back Option means the sell back option in schedule J of Part 3 of the Supply Contract.

Shipping Date means the date no later than 7 days after the date upon which Komatsu issues a Bill
of Lading in respect of the relevant item of Equipment to the Contractor for shipment to the
Lessee. The Shipping Date shall be no later than the last day of the Availability Period.

Shipping Instalment means 85% of the CIF Lae Portion in respect of the relevant item of Equipment.

Subsidiary has the meaning given in the Corporations Act 2001 (Cth).

Supply Contract means the supply of mining equipment contract dated 22 November 2006 between the
Lessee and the Contractor.

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A “tax” means a tax, levy, impost, deduction, charge, stamp duty, financial institutions duty, any
credit or debit tax, compulsory loan or withholding (together with any related interest, penalty,
fine or expense in connection with any of them).

World Bank Guidelines means the Pollution Prevention and Abatement Handbook produced by the World
Bank (as updated) and any other environmental guidelines published by the World Bank or the
International Finance Corporation (including the World Bank General Environmental Guidelines, the
IFC General Health and Safety Guidelines and guidelines outlined in the Equator Principles).

Interpretation

Headings are for convenience only and do not affect interpretation. The following rules apply
unless the context requires otherwise.

	w	 	A reference to a party to this document or another agreement or document includes the party’s successors and permitted
substitutes or assigns.
	 
	w	 	A reference to writing includes a facsimile transmission and any means of reproducing words in a tangible and
permanently visible form.
	 
	w	 	Mentioning anything after including, includes or including or after examples does not limit what else might be included.
	 
	w	 	A reference to conduct includes an omission, statement or undertaking, whether or not in writing.

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SCHEDULE 2

SCHEDULE OF REPRESENTATIONS, WARRANTIES AND UNDERTAKINGS

Terms used in this Schedule are defined and will be interpreted on the basis set out in Schedule 1
of the attached Master Lease Agreement or a Lease unless the context requires otherwise.

	1.	 	REPRESENTATIONS AND WARRANTIES

The Lessee represents and warrants as follows.

	(a)	 	(Status) It is incorporated in the place stated by it. Each Bank Document is its binding
obligation enforceable against it, and does not breach any document or agreement binding on it
or any law.
	 
	(b)	 	(Authority) It has full power and authority to enter into and perform the Bank Documents and
Project Documents to which it is a party. No further corporate action is necessary for it to
be bound under any Bank Document. Each person held out in a verification certificate attached
to a Bank Document or other document signed by a secretary or director as having that
authority, is authorised to sign a drawdown or other notice on its behalf.
	 
	(c)	 	(Information) All information provided to Westpac or the Arranger in respect of the Bank
Documents and to the insurers in respect of the PRI Policy by or on behalf of it or HGMC is
true in all material respects and is not by omission or otherwise misleading or deceptive in
any material respect. It has disclosed to Westpac and the Arranger everything known to it
material to Westpac’s entry into the Master Lease Agreement and the Leases. It has disclosed
to the insurers under the PRI Policy everything known to it material to each insurer’s entry
into the PRI Policy.
	 
	(d)	 	(Accounts) Its and HGMC’s most recent consolidated and unconsolidated accounts give a true
and fair view under generally accepted accounting principles. There has been no material
adverse change since the period they cover. They disclose all material Finance Debt and
material contingent liabilities.
	 
	(e)	 	(Litigation) No litigation, tax claim, dispute or other proceeding is current or, to its
knowledge, threatened which may have a Material Adverse Effect.
	 
	(f)	 	(No trustee) It is not a trustee of any trust, except for any implied constructive or
resulting trust which arises under its ordinary course of business.
	 
	(g)	 	(No default) There is no subsisting Event of Default, or event which with time or notice or
both would become an Event of Default.
	 
	(h)	 	(Environment Law) There is and has been nothing relating to it or its business or assets
which under any Environmental Law has given rise or may give rise to substantial expenditure
by it, a substantial claim against it or a requirement that it cease or substantially alter a
material activity.
	 
	(i)	 	(Taxes) It has paid all taxes payable by it, expect where it is disputing the taxes in good
faith where it has set aside sufficient reserves to pay such tax and failure to pay such taxes
will not have a Material Adverse Effect.
	 
	(j)	 	(Authorisation) It has in place all Authorisations necessary or advisable in connection with
the execution and performance on the Bank Documents and the Project Documents and the conduct
of the Project.
	 
	(k)	 	(Project Documents) All Project Documents are valid and binding, it is complying with their
terms, it has not received any notice or claim by any other party of a material breach, or
threatening termination or rescission.
	 
	(l)	 	(Compliance of Project) The Project as conducted, and as contemplated, complies materially
with all applicable laws (including Environmental Laws), and with World Bank Guidelines and
with the requirements of all relevant Authorisations and the Project Documents.

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Consolidated Goldfields Limited - Master Lease Agreement

	(m)	 	(Subsidiaries) It has no Subsidiaries.
	 
	(n)	 	(Solvency) No Event of Insolvency (as defined in the Sell Back Option) has occurred in
relation to it.
	 
	(o)	 	(Insurance) It has obtained insurance in accordance with the terms of Clause 6.7 of
Schedule 3.
	 
	(p)	 	(Material Adverse Effect) Nothing has occurred which has or is likely to have a Material
Adverse Effect.
	 
	(q)	 	(Security) There is no Security Interest over any of its assets other than the Project Charge
and liens arising by operation of law.
	 
	(r)	 	(Use of proceeds) All proceeds of each drawdown of any part of the Funded Amount are to be
used or have been used (as applicable) to acquire the relevant item of Equipment.
	 
	(s)	 	(Transactions permitted) The execution and performance by it of the Bank Documents to which
it is expressed to be a party and each transaction contemplated under those documents did not
and will not violate in any respect a provision of:

	 	(i)	 	a law or treaty or a judgment, ruling, order or decree of a Governmental Agency
binding on it;
	 
	 	(ii)	 	its constitution or other constituent documents; or
	 
	 	(iii)	 	any other document or agreement which is binding on it or its assets,
and, except as provided by the Bank Documents, did not and will not:
	 
	 	(iv)	 	create or impose a Security Interest on any of its assets; or
	 
	 	(v)	 	allow a person to accelerate or cancel an obligation with respect to Finance
Debt, or constitute an event of default, cancellation event, prepayment event or
similar event (whatever called) under an agreement relating to Finance Debt, whether
immediately or after notice or lapse of time or both.

	(t)	 	(Investment Promotion Act) The Lessee holds a current certificate under the Investment
Promotion Act 1992 (PNG) and the activities it is conducting in respect of the Project and the
Bank Documents and the Project Documents are consistent with this certificate.

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Consolidated Goldfields Limited - Master Lease Agreement

	2.	 	UNDERTAKINGS

The Lessee undertakes as follows unless Westpac gives written consent otherwise.

	(a)	 	(Information) It will provide the following:

	 	(i)	 	promptly after the end of each financial year (but not longer than 120 days
thereafter), copies of its consolidated and unconsolidated audited annual balance
sheet, cashflow statements and profit and loss statement certified by an Authorised
Officer of the Lessee, together with a certificate of the company signed by two
directors certifying as to whether an Event of Default subsists and that its
representations are true;
	 
	 	(ii)	 	promptly after each calendar quarter (but not longer than 45 days thereafter),
copies of its quarterly management accounts;
	 
	 	(iii)	 	promptly after each month in a form to be agreed with the Lessor, and in any
event within 20 days of the end of that month, copies of the monthly management
operating report for the month;
	 
	 	(iv)	 	within 14 days of receipt each year, copies of:

	 	(A)	 	the Certificates of Currency for all insurances including the PRI
Policy; and
	 
	 	(B)	 	the annual certificate and other supporting documentation
provided by the Contractor under clause S34.2 of the Maintenance Contract,
accompanied by a certificate of the company signed by two directors confirming
the contents of the certificate and other supporting documentation;

	 	(v)	 	promptly, details of any substantial dispute between it and a Governmental
Agency, or a proposal by a Governmental Agency to compulsorily acquire all or a
substantial part of its assets;
	 
	 	(vi)	 	promptly following receipt, copies of each Handover Certificate;
	 
	 	(vii)	 	promptly, notice of any dispute with another party to a Project Document, any
material breach of a Project Document by any party, any allegation of a material
breach, any communication threatening or foreshadowing a possible termination,
rescission or acceptance of a repudiation of a Project Document or any amendment to or
variation of a Project Document;
	 
	 	(viii)	 	immediately, notice and written particulars of any failure to maintain the Equipment
in accordance with the requirements of the Sell Back Option and/or non-compliance with
those requirements;
	 
	 	(ix)	 	promptly, notice of any event of default or potential event of default
(howsoever described) under the Project Loan Agreement;
	 
	 	(x)	 	promptly, notice and written particulars of any litigation, arbitration, tax
claim, dispute or administrative or other proceeding in relation to it involving a
claim or series of claims exceeding US$1,000,000 or its equivalent or which may
otherwise have a Material Adverse Effect; and
	 
	 	(xi)	 	promptly, any other information reasonably requested by Westpac (including
information relating to the financial condition, operations and business of the
Lessee).

	 	 	Any account or statement provided to Westpac by the Lessee must give a true and fair view
and be prepared in accordance with applicable laws and generally accepted accounting
principles consistently applied.

	(b)	 	(Notice of Default) It will notify Westpac as soon as it becomes aware of any Event of
Default, or any other event which with time or notice or both would become an Event of Default
(including any breach of a Bank Document).
	 
	(c)	 	(Assets) It will not dispose of all or any material part of its assets or an interest in
them or agree or attempt to do so (whether in one or more related or unrelated transaction).

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	(d)	 	(Authorisations) It will keep in force and comply with all Authorisations required in
relation to the performance and enforceability of the Bank Documents, the Project Documents
and in relation to the Project.
	 
	(e)	 	(Compliance with law) It will comply with all laws binding on it where failure to do so may
have a Material Adverse Effect.
	 
	(f)	 	(Compliance with Project Documents) It will comply in all material respects with all Project
Documents.
	 
	(g)	 	(No variation or termination of Project Documents) It will keep the Project Documents in
full force and effect. Except with the prior written consent of Westpac (not to be
unreasonably withheld), it will not:

	 	(i)	 	amend or vary or consent to any amendment or variation of a Project Document,
provided that this undertaking shall not apply to any amendment or variation of the
Memorandum of Agreement, Mining Lease or Mining Easement where such amendment or
variation is initiated by a Government Agency;
	 
	 	(ii)	 	avoid, release, surrender, repudiate, terminate, rescind, discharge (other than
by performance) or accept the termination, rescission or repudiation of a Project
Document; or
	 
	 	(iii)	 	expressly or impliedly waive, or extend or grant any time or indulgence in
respect of, any provision of a Project Document.

	(h)	 	(Enforcement of Project Documents) It will enforce each Project Document to which it is a
party and exercise its rights, authorities and discretions under those documents prudently and
while an Event of Default or event which with notice or time or both would become an Event of
Default subsists, in accordance with the directions (if any) of the Lender.
	 
	(i)	 	(World Bank Guidelines) It will comply with the World Bank Guidelines in relation to the
Project and the Equipment.
	 
	(j)	 	(Change of business) It will not substantially change the nature of the business or
businesses carried on by it as a whole. It will not take any action which would have that
effect, whether by disposal, acquisition or otherwise.
	 
	(k)	 	(Arms length dealings) It will not deal with any other party except at arms length for full
commercial consideration in the ordinary course of business.
	 
	(l)	 	(Insurance) It will keep in force insurance in accordance with clause 6.7 of schedule 3.
	 
	(m)	 	(Environmental Law) It will maintain procedures which in the opinion of Westpac are adequate
to monitor its compliance with Environmental Laws, the World Bank Guidelines or any
Authorisation under any of those laws, and circumstances which may give rise to a claim or a
requirement of substantial expenditure by it.
	 
	 	 	It will promptly remedy any material breaches or circumstances referred to above.
	 
	(n)	 	(Negative Pledge) It will not grant or permit to subsist any Security Interest over any of
its assets except:

	 	(i)	 	liens arising by operation of law, where the amounts secured by the lien is
paid when due, except where it is disputed in good faith and sufficient reserves have
been set aside to make payment of the disputed amount;
	 
	 	(ii)	 	the Project Charge provided that immediately after execution of the Project
Charge the Lessee will provide a certified copy of it to Westpac; or
	 
	 	(iii)	 	any other Security Interest described in annexure J of the Project Loan
Agreement provided that:

	 	(A)	 	prior to the date of creation of the relevant Security Interest,
Westpac has consented to the terms of the instrument creating the Security
Interest in respect of which:

	 	(1)	 	such consent may not be unreasonably withheld
other than as set out in sub-paragraph (2); and

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	 	(2)	 	such consent may be withheld if, in the
reasonable opinion of Westpac, such creation or existence of the
relevant Security Interest would adversely affect a right or interest of
Westpac in respect of the Equipment or its rights under the Bank
Documents, the Supply Contract or the Maintenance Contract or the
ability of the Lessee to perform its obligations under those documents
in any material respect; and

	 	(B)	 	the Lessee has or will immediately after execution of the
instrument referred to in paragraph (A) provide a certified copy of it to
Westpac.

	(o)	 	(Title Retention) It will not enter into an agreement with respect to the acquisition of
assets on title retention terms expect in the ordinary course of day-to-day trading.
	 
	(p)	 	(Sale and lease back) It will not sell or otherwise dispose of any of its assets to a person
were, under the terms of that sale or disposal, or under a related transaction, that asset is
or may be leased to it or any related Entity.
	 
	(q)	 	(Security Deposit) It will not deposit or lend money on terms that it will not be repaid
until its or another person’s obligations or indebtedness are performed or discharged. It
will not deposit money with or lend money to a person (other than Westpac) to whom it is, or
is likely to become, actually or contingently indebted.
	 
	(r)	 	(Project Revenue)

	 	(i)	 	It will ensure that all revenue of the Project, including all amounts payable
in relation to the sale of gold and other product of the Project and all amounts
payable to it under any hedges, are paid directly into the Proceeds Account. It will
give to all buyers and all counterparties to hedge contracts, directions necessary for
them to make payment to the Proceeds Account directly.
	 
	 	(ii)	 	If the Lessee enters into any agreement relating to Finance Debt which in any
way regulates the order of payment out of the Proceeds Account or any other account, it
will ensure that rent, fees and all other amounts under the Leases and the Master Lease
Agreement is included as operating expenditure and will not rank behind any other
expenditure or payment until the date that Westpac issues a notice to the Lessee
terminating this Agreement following an Event of Default.

	(s)	 	(Prudent operator, good operating practice) It will ensure that the Project is constructed,
operated and maintained in accordance with all applicable laws and Authorisations, the Project
Documents and with the degree of skill, diligence, prudence, foresight and operating practice
which would reasonably and ordinarily be expected from a reasonable and prudent operator of
the same type of undertaking as the Project.
	 
	(t)	 	(Hedging) The Lessee shall not adopt any hedging policy without the prior written agreement
of Westpac provided that Westpac’s agreement will not be unreasonably withheld; provided that
Westpac may withhold its agreement if the implementation of and compliance with the hedging
policy proposed by the Lessee has or is likely to have (in the opinion of Westpac) a material
adverse impact on the Project economics as evidenced by the Financial Model and the mine plan
provided as a condition precedent under clause 1.2.1.2.
	 
	(u)	 	(Inspection) The Lessor or persons authorised by it may at any time on reasonable notice
inspect and require the provision of copies of the books and records, and inspect the
premises, of the Lessee. The Lessee will do everything in its power to assist that
inspection and provide those copies and will ensure that its officers and employees do that
same.
	 
	(v)	 	(PRI Policy) It will comply with the terms of the PRI Policy and do everything necessary to
maintain the PRI Policy (or an equivalent policy acceptable to the Arranger and Westpac) in
full force and effect until the Expiry Date. It will not do or permit anything which would
prejudice the PRI Policy including anything which would allow any insurer to reduce or deny
cover or terminate the PRI Policy before the Expiry Date.

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	(w)	 	(Sell Back Option) It will maintain the Equipment in accordance with the requirements for
repurchase under the Sell Back Option, without any reduction on the Sell Back Price (as
defined in the Sell Back Option). It will comply with all the terms of the Sell Back Option,
including in relation to decommissioning and delivery of Equipment and related title and other
documentation. It will ensure that it retains in good condition all documentation required to
be provided under the Sell Back Option.
	 
	(x)	 	(Finance Debt) It will not incur any Finance Debt except:

	 	(i)	 	under the Project Loan Agreement provided that the Lessee has (or will
immediately after execution of the Project Loan Agreement) provided a certified copy of
it to Westpac;
	 
	 	(ii)	 	shareholder loans provided that such shareholder loans shall not exceed the
applicable PNG “thin capitalization” limit in effect as at the date of this Agreement
(being a debt to equity ratio of 3:1) and are subordinated to the Finance Debt under
this Agreement on terms acceptable to Westpac; or
	 
	 	(iii)	 	Finance Debt contemplated in the Project Loan Agreement but secured by the
Lessee under an alternative funding arrangement on commercial terms substantially the
same as the Project Loan Agreement or otherwise acceptable to Westpac, provided that
the financier of that Finance Debt has entered into intercreditor arrangements on terms
the same as the Intercreditor Deed or otherwise acceptable to Westpac and provided that
the aggregate of Finance Debt under the Project Loan Agreement and all of the said
alternative funding arrangements does not exceed the Finance Debt contemplated in the
Project Loan Agreement.

	(y)	 	(Financial accommodation) It will not advance money or provide financial accommodation, or
give a Guarantee or a Security Interest, in connection with an obligation of another person
other than the Project Charge or liens arising by operation of law.
	 
	(z)	 	(Accounts) It will keep proper books of account that give a fair view of its financial
condition and state of affairs.
	 
	(aa)	 	(Conditions Subsequent) It will deliver to Westpac:

	 	(i)	 	within 6 months of the date of the Master Lease Agreement (or such longer
period as Westpac and the Lessee may agree) a certified copy of the Mining Easement;
and
	 
	 	(ii)	 	within 6 weeks of the date of the Master Lease Agreement (or such longer period
as Westpac and the Lessee may agree) a certified copy of the Project Loan Agreement and
the Project Charge.

	(bb)	 	(Proceeds Account) On or before the earlier of 31 October 2008 and the date any revenues are
received by the Lessee in respect of sales of mineral produced from the Project, it will
establish in its name the Proceeds Account and maintain the Proceeds Account until the Expiry
Date (or such earlier date that the Principal Outstanding and all other amounts owing by the
Lessee to Westpac under the Master Lease Agreement are satisfied in full).

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	3.	 	EVENTS OF DEFAULT

Each of the following is an Event of Default except as stated below.

	(a)	 	(Obligations under transaction documents) The Lessee fails to comply with any obligation in
any Bank Document (including the non-payment of any amount owing to Westpac under any Bank
Document).
	 
	(b)	 	(Misrepresentation) A representation or statement by or on behalf of the Lessee in a Bank
Document, or in a document provided under it, is misleading in a material respect.
	 
	(c)	 	(Cross Default)

	 	(i)	 	Finance Debt of the Lessee is not paid when due (or within an applicable grace
period) or becomes due, or capable of being called due, in advance of its stated
maturity (except as a result of the exercise of a prepayment right in the absence of
default); or
	 
	 	(ii)	 	an event of default (how so ever described) occurs under any other document to
which the Lessee is a party.

	(d)	 	(Winding up) An application or order is made, or a resolution is passed or proposed in a
notice of meeting, or other applicable steps taken, for the winding up, statutory management
or administration of the Lessee or any analogous process, or an arrangement or composition
with its creditors or a class of them.
	 
	(e)	 	(Enforcement against assets) A receiver, receiver and manager, administrator or similar
officer is appointed over the Lessee or any of its assets. A Security Interest is enforced,
or distress or other execution threatened or levied, against any asset of the Lessee.
	 
	(f)	 	(Reduction of capital) The Lessee reduces its capital, cancels its uncalled capital or buys
back its shares.
	 
	(g)	 	(Insolvency) The Lessee is insolvent or is deemed or presumed insolvent under any applicable
law. The Lessee ceases or threatens to cease carrying on its business or paying its debts.
	 
	(h)	 	(Event of Insolvency) An Event of Insolvency occurs (as defined in the Sell Back Option).
	 
	(i)	 	(Documents) All or a material part of a Bank Document or a Project Document is for any reason
terminated, discharged, avoided, repudiated or rescinded or of no force or effect or of
limited force or effect. The Lessee alleges that it is so.
	 
	(j)	 	(Investigation) An investigation or any other form of inquiry is instituted under the
Corporations Act 2001 (Cth), the Companies Act 1997 (PNG) or similar legislation into the
affairs of the Lessee which in the reasonable opinion of Westpac may have a Material Adverse
Effect.
	 
	(k)	 	(Revocation of Authorisation) An Authorisation which is material to the business of the
Lessee, the Project or performance by the Lessee of its obligations under the Bank Documents
ceases to have effect and is not replaced by another Authorisation acceptable to Westpac.
	 
	(l)	 	(Ceasing business) The Lessee ceases to carry on business.
	 
	(m)	 	(Control) Without the prior written consent of Westpac (not to be unreasonably withheld):

	 	(i)	 	the Lessee ceases to be directly or indirectly wholly and beneficially owned by
HGMC provided that HGMC may, through its relevant Subsidiaries, procure and/or the
Lessee may transfer to the Provincial Government of Morobe and/or the Landowners (as
defined in the Mining Development Agreement) up to 5% of the issued share capital in
the Lessee in accordance with the provisions of the Mining Development Agreement;
	 
	 	(ii)	 	the Project Lender ceases to be directly or indirectly wholly and beneficially
owned by HGMC; or
	 
	 	(iii)	 	in the opinion of Westpac there is a substantial change in the ownership,
management or control of HGMC.

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	(n)	 	(Compulsory Acquisition) Any Equipment or all or a material part of the Project or the
assets of the Lessee are acquired by any Governmental Agency or otherwise expropriated.
	 
	(o)	 	(Abandonment) The Project is abandoned, or put on an care and maintenance basis.
	 
	(p)	 	(World Bank Environmental Standards) The Lessee fails to comply with World Bank Guidelines
for a continuous period of 30 days or more.
	 
	(q)	 	(Insurance) Any insurance required to be maintained in relation to the Equipment or the
Project (including the PRI Policy), is terminated or expires without renewal prior to the
Expiry Date or is materially or adversely reduced or otherwise prejudiced, or (without
limiting the foregoing) an insurer denies or materially reduces cover, or is entitled to
terminate or avoid the policy, or to deny cover.
	 
	(r)	 	(Analogous events) Anything analogous to anything referred to in paragraphs (d) to (h)
inclusive or which has substantially the same effect in any jurisdiction occurs with respect
to the Lessee.
	 
	(s)	 	(Conditions Subsequent) The Lessee fails to comply with its undertakings in paragraph (aa)
of Schedule 2, part 2.
	 
	(t)	 	(Mining Easement) The Mining Advisory Council of Papua New Guinea or the Minister
responsible for mining in Papua New Guinea makes a final and conclusive determination not to
grant the Mining Easement either in the form of the Mining Easement Application or in such
other form as may be acceptable to the Lessee and agreed by Westpac (acting reasonably).
	 
	(u)	 	(Material Adverse Change) There are any other circumstances including a material adverse
change to the business assets or financial condition of the Lessee which may in the opinion of
Westpac have a Material Adverse Effect.

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SCHEDULE 3

SCHEDULE OF LEASE TERMS

	1.	 	DEFINITIONS AND INTERPRETATION

The definitions and principles of interpretation in Schedule 1 to the Master Lease Agreement or the
relevant Lease apply to this Schedule unless the context requires otherwise.

	2.	 	REPRESENTATIONS AND UNDERTAKINGS

The Lessee makes the representations and warranties and gives the undertakings in Schedule 2 to the
Master Lease Agreement.

	3.	 	COMMENCEMENT OF LEASE

This Lease will commence on the commencement date stated in the Details Schedule.

	4.	 	DELIVERY, TITLE, LOCATION OF EQUIPMENT AND ASSIGNMENT
	 
	4.1	 	(Delivery): The Lessee will take delivery of the Equipment on Westpac’s behalf at the
Lessee’s cost and risk of delay. The taking of delivery by execution by both the Lessee and
the Contractor of the Handover Certificate in accordance with the terms of the Supply Contract
is:

	 	(a)	 	an acceptance of delivery by Westpac; and
	 
	 	(b)	 	conclusive proof, as between the parties, that the Equipment has been inspected
by the Lessee and is satisfactory to the Lessee.

	4.2	 	(Lessee’s risk): The Lessee accepts all risk of the non-existence or non-delivery of the
Equipment, any defect in the Equipment, their conformity to any description, any defects in
Westpac’s title to them and their quality, merchantability, suitability, fitness and
condition. The Lessee must satisfy itself as to these matters. Westpac has no obligation or
liability in connection with the delivery or acceptance of any item of Equipment.
	 
	4.3	 	(Property of owner):

	 	(a)	 	The Lessee acknowledges that, following the assignment in accordance with
clause 4.6 of this Lease, the Equipment is and will remain Westpac’s sole property.
	 
	 	(b)	 	The Lessee will take all steps necessary or reasonably required by Westpac to
preserve Westpac’s rights and title to the Equipment.

	4.4	 	(Location of Equipment): The Lessee will keep the Equipment:

	 	(a)	 	in the Lessee’s sole possession, except pursuant to the Maintenance Contract
when the relevant item of Equipment will be in the possession of the Contractor; and,
	 
	 	(b)	 	unless the Equipment is normally mobile (for example, a motor vehicle, ship or
plane), at the Premises stated in the Details Schedule or, if no Premises are stated,
in a safe and proper place notified to Westpac by the Lessee (or any other places
approved in writing by Westpac).

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	4.5	 	(Leased or Mortgaged Premises):

	 	(a)	 	Where the Equipment is to be installed or used in any Premises or places:

	 	(i)	 	that are not owned by the Lessee; or
	 
	 	(ii)	 	subject to any Security Interest, lease, sub-lease or other
interest,

the Lessee must:

	 	(A)	 	first deliver to Westpac a written acknowledgment executed by
each person having any interest in the Premises or places (whether as owner,
mortgagee, lessor, sub-lessor or otherwise) that:

	 	(1)	 	the Equipment is and will remain the property of Westpac; and
	 
	 	(2)	 	Westpac may enter those Premises or places and
remove the Equipment;

	 	(B)	 	take all steps necessary to preserve Westpac’s rights and title
to the Equipment; and,
	 
	 	(C)	 	pay the rents, rates, taxes, charges and impositions payable in
respect of the Premises or places where the Equipment is located and all amounts
payable under any Security Interest, lease, sub-lease or other interest in
relation to such Premises or places.

	 	(b)	 	The Lessee must not create or permit any Security Interest over the Premises or
place where the Equipment is located unless the Lessee has first delivered to Westpac
an acknowledgment by the security holder in accordance with paragraph (a)(A) above.

	4.6	 	(Assignment):

The provisions of the Deed of Assignment apply in respect of Equipment the subject of this
Lease.

	5.	 	PAYMENTS
	 
	5.1	 	(manner of payment): The Lessee will pay the Rent Instalments, the Casualty and Termination
Value, the Residual Value and all other money payable by the Lessee under this Lease:

	 	(a)	 	as set out in the Details Schedule or elsewhere in this Lease;
	 
	 	(b)	 	without any set-off, withholding or deduction;
	 
	 	(c)	 	to Westpac at the address stated in the Details Schedule or at any other
address Westpac notifies the Lessee in writing from time to time; and
	 
	 	(d)	 	with any applicable GST or similar tax.

	5.2	 	(obligations unconditional):

	 	(a)	 	The Lessee’s obligations to pay the Rent Instalments, the Casualty and
Termination Value, the Residual Value and all other amounts are absolute and
unconditional.
	 
	 	(b)	 	They will not be affected by anything which would otherwise affect them
(including any defect in the Equipment, quality, fitness, suitability, merchantability
or condition of the Equipment, conformity to any description, title to the Equipment or
the non-existence or destruction of the Equipment).
	 
	 	(c)	 	The consideration for the Lessee’s obligations includes the payment of the
Funded Amount by Westpac.
	 
	 	(d)	 	Rent Instalments paid in advance are not refundable.

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	5.3	 	(Default interest): Interest will accrue each day on each amount due but unpaid. The rate
will be the applicable Interest Rate for the Interim Interest Instalment or Term Instalment as
the case may be plus 2%. That interest accrues before and after any judgment. Unless it does
so more often, Westpac will be taken to have debited monthly the Lessee’s account with
accrued interest under this paragraph. That interest will then itself bear interest.
	 
	5.4	 	(Stamp duty and government charges): The Lessee will pay or reimburse Westpac for all stamp,
transaction and other similar duties and charges in relation to this Lease and any security
(including Guarantees) and any transaction under them. This includes financial institutions
duty, hiring arrangement duty and debits tax. The Lessee will also pay any fines and
penalties unless they result from a failure by Westpac to lodge a document for stamping in
sufficient time, having received from the Lessee the amount of stamp duty at least 7 days
before the due date.
	 
	5.5	 	(Indemnities and expenses): The Lessee will indemnify Westpac on demand against:

	 	(a)	 	loss or destruction of the Equipment or damage to the Equipment for any reason;
and
	 
	 	(b)	 	all liabilities, losses, damages, claims, proceedings (whether civil or
criminal), fines, penalties, costs (including legal costs on a full indemnity basis)
and expenses which:

	 	(i)	 	are incurred by Westpac or made or claimed by any person at any
time; and
	 
	 	(ii)	 	in any way arise out of or relate to this Lease or the Equipment,
its ownership, delivery, assembly, installation or use.

This includes those arising out of or relating to:

	 	(A)	 	death, injury or property damage;
	 
	 	(B)	 	any failure to comply with any law or duty;
	 
	 	(C)	 	any breach or Event of Default under this Lease or any Guarantee of this Lease;
	 
	 	(D)	 	any actual or contemplated enforcement or exercise of rights or powers under
this Lease or a Guarantee of this Lease;
	 
	 	(E)	 	any Environmental Law (including clean up and remediation costs);
	 
	 	(F)	 	any dealing with the Equipment or steps taken with a view to dealing;
	 
	 	(G)	 	equipment leasing arrangements in PNG which are reasonably required by Westpac;
or
	 
	 	(H)	 	any changes to the rates of tax depreciation or corporate taxation but not (and
each party shall bear its own costs and risks in respect of):

	 	(i)	 	denial and deductions due to characterisation of the transaction
(including the transaction being characterised as a lease for taxation
purposes); or
	 
	 	(ii)	 	taxation on sale proceeds where such proceeds exceed the Residual Vale.

	5.6	 	(Break costs): If:

	 	(a)	 	this Lease is terminated under Clause 9.1 or for any other reason other than a
breach or default by Westpac;
	 
	 	(b)	 	a Lease requested in a Drawdown Notice is not entered into for any reason other
than a breach or default by Westpac; or
	 
	 	(c)	 	the relevant Equipment is not purchased on the anticipated Delivery Date for
any reason other than a breach or default by Westpac,

the Lessee will indemnify Westpac on demand against any cost determined by Westpac as
being or to be incurred by reason of:

	 	(i)	 	the liquidation or re-employment of deposits or other funds acquired or
contracted for by it to fund or maintain; or

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	 	(ii)	 	the termination or reversing of any agreement entered into by Westpac to fix,
hedge or limit its effective cost of funding or maintaining,

the purchase price, and delivery and commissioning cost, of the Equipment, its
participation in this Lease or any amount (including loss of margin in connection with any
hedging arrangements).

	5.7	 	(Variation of Rent Instalments, Residual Value and Casualty and Termination Value) Any
variation or recalculation will be effective under clause 5.8 on notice from Westpac to the
Lessee.
	 
	5.8	 	(Change In Margin) Whenever the Margin changes Westpac will recalculate all Rent Instalments
payable after the Margin changes and the Casualty and Termination Value and promptly notify
the Lessee.
	 
	5.9	 	(Indirect tax):

	 	(a)	 	All payments to be made by the Lessee under any Bank Document are calculated
without regard to GST. If any such payment constitutes the consideration for the whole
or any part of a taxable supply by Westpac, the amount of that payment shall be
increased by an amount equal to the amount of GST which is chargeable in respect of the
taxable supply in question. Such increase shall be made after taking into account the
reduction of any costs resulting from the abolition or reduction of any taxes as part
of the introduction of the GST.
	 
	 	(b)	 	If and to the extent that any payment or other consideration to be made or
furnished by Westpac to a person other than the Lessee pursuant to or in connection
with any Bank Document or the Equipment may be increased or added to by reference to
(or as a result of any increase in the rate of) any GST for which Westpac is not
entitled to receive and retain an input tax credit, the Lessee shall pay to Westpac on
demand an amount equal to that increase or the value of that addition.

	5.10	 	(PNGP Adjustment): If:

	 	(a)	 	the PNGP is more than the Estimated PNGP, on the Delivery Date the Lessee shall
pay to Westpac the amount of the difference in cash between an amount equal to 15% of
the PNGP and an amount equal to 15% of the Estimated PNGP;
	 
	 	(b)	 	the PNGP is less than the Estimated PNGP. with effect from the Delivery Date
Westpac shall set off the difference in those amounts against amounts owing by the
Lessee under this Lease.

	6.	 	THE LESSEE’S OBLIGATIONS RELATING TO EQUIPMENT
	 
	6.1	 	(Compliance with laws and requirements): The Lessee will comply with all laws and
registration or licensing requirements in relation to the Equipment or their use and with any
requirements or conditions of their manufacturers’ or suppliers’ warranties.
	 
	6.2	 	(Registration): Where a relevant law requires Equipment to be registered (for example, if
they are a motor vehicle, boat, ship or an aircraft):

	 	(a)	 	the Lessee will register them in the Lessee’s name as if the Lessee were the
owner, unless directed otherwise by Westpac; and
	 
	 	(b)	 	when it returns the Equipment to Westpac, the Lessee will immediately do
everything necessary to have the Equipment registered in Westpac’s name or as Westpac
directs.

	6.3	 	(Use): The Lessee will ensure the Equipment is used properly, safely and without risk to
health.

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	6.4	 	(Repair and maintenance): The Lessee will at its cost keep or maintain the Equipment in good
repair and condition, subject to fair wear and tear and in accordance with the
standards prescribed in the Maintenance
Contract and the Sell Back Option. The
Lessee will furnish all proper parts
and accessories for this purpose. The
Lessee will comply with the terms of
the Maintenance Contract and the Sell
Back Option. The Lessee will not
terminate, or amend, vary or waive any
provision of, the Maintenance Contract
without the prior written consent of
Westpac.

	6.5	 	(Alterations):

	 	(a)	 	The Lessee will not:

	 	(i)	 	make any alterations, improvements or additions to the Equipment; or
	 
	 	(ii)	 	install anything on or in the Equipment,

except in compliance with this Lease, with clause S15.1 of the Maintenance Contract
or with the consent of Westpac.

	 	(b)	 	Everything installed on or in the Equipment will be part of the Equipment and
Westpac’s property. This includes all parts and accessories.

	6.6	 	(Inspection):

	 	(a)	 	The Lessee will permit Westpac to inspect or test the Equipment at any time.
	 
	 	(b)	 	The Lessee will ensure Westpac has access to any Premises or places where the
Equipment may be.

	6.7	 	(Insurance):

	 	(a)	 	The Lessee will:

	 	(i)	 	at its cost keep in force insurance for its business and assets
as would a prudent business of its size conducting its business and assets;
	 
	 	(ii)	 	at its cost insure the Equipment (including against loss or
damage) and keep them insured to their full insurable value (as defined below);
and
	 
	 	(iii)	 	take out other insurance with respect to the Equipment against:

	 	(A)	 	the usual risks (including, where appropriate,
third party and all risks required by law); and
	 
	 	(B)	 	all other risks which Westpac requires,

	 	(iv)	 	procure that there is in place at all times up to the Expiry Date
a political risks insurance policy,

in the manner, to the extent and on terms that are satisfactory to Westpac.

	 	(b)	 	Each insurance policy must:

	 	(i)	 	be in Westpac’s name (or if Westpac agrees, in the names of the
Lessee and Westpac as co-insured) with reputable insurers approved by Westpac
(that approval not to be unreasonably withheld); and
	 
	 	(ii)	 	provide that to the extent that the policy covers the interest of
Westpac, the insurer will not refuse or reduce a claim or cancel or avoid the
policy except where the right to do so results from the fraud of Westpac.

	 	(c)	 	The Lessee will produce to Westpac certificates of currency at Westpac’s request.
	 
	 	(d)	 	The Lessee will ensure that all information provided to the insurers in respect
of any insurance policy under this clause (including the PRI Policy) by or on behalf of
it or HGMC is true in all material respects and is not by omission or otherwise
misleading or deceptive in any material respect. The Lessee will disclose to the
insurers under any insurance policy under this clause (including the PRI Policy)
everything known to it material to each insurer’s entry into the relevant policy.

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	 	(e)	 	The Lessee will not do or permit anything to be done which may prejudice any
insurance policy under this clause (including the PRI Policy). The Lessee will not omit
to do anything if the omission may prejudice it.
	 
	 	(f)	 	The Lessee will do everything necessary to enable Westpac to collect any money
under any insurance policy under this clause (including the PRI Policy).
	 
	 	(g)	 	The full insurable value of Equipment at any date means the greater of:

	 	(i)	 	the full market value of the Equipment; and
	 
	 	(ii)	 	the full replacement or reinstatement value of the Equipment.

	 	(h)	 	Westpac may appoint an expert adviser to review and make recommendations in
relation to all insurance matters.
	 
	 	(i)	 	The Lessee will procure that if the PRI Policy expires prior to the Expiry Date
suitable replacement political risk insurance acceptable to Westpac will be put in
place.
	 
	 	(j)	 	Costs associated with insurance are for the account of the Lessee.

	6.8	 	(Dealing with Equipment): The Lessee will not:

	 	(a)	 	sell or assign;
	 
	 	(b)	 	lend, let on lease or otherwise part with possession of; or
	 
	 	(c)	 	create or permit any Security Interest over,

	 	 	any of the Equipment or the Lessee’s interest in them or in this Lease, or purport or
attempt to do so, without Westpac’s prior written consent.
	 
	6.9	 	(Sell Back Option) The Lessee will ensure that at all times the Equipment satisfies the
requirements for repurchase under the Sell Back Option without any reduction in the Sell Back
Price (as defined in the Sell Back Option). Without limitation, it will maintain the
Equipment so that at all times its condition satisfies the requirements of the Sell Back
Option. The Lessee will comply with the Sell Back Option.

	7.	 	LOSS AND RISK OF EQUIPMENT

	7.1	 	(Total loss or damage): If any of the Equipment (the Lost Equipment):

	 	(i)	 	is lost, stolen, destroyed or damaged beyond repair; and
	 
	 	(ii)	 	is treated by the insurer as a total loss; or
	 
	 	(iii)	 	is requisitioned or resumed;

	 	 	the following will apply.

	 	(a)	 	The Lessee will immediately notify Westpac.
	 
	 	(b)	 	Westpac shall calculate and demand from the Lessee the aggregate of the Casualty
and Termination Value of the Lost Equipment at the date of demand, all Rent Instalments
accrued up to the date of demand but not paid and any amount payable under clause 5.5
or 5.6 up to the date of demand less any money Westpac has received from the insurer or
any other person because the Equipment became Lost Equipment, after deducting any tax
payable or accountable for by Westpac in respect of or by reference to the amount so
received, including GST.
	 
	 	(c)	 	The Lessee will pay the amount in paragraph (b) to Westpac on demand and the
Lease will terminate in respect of the Lost Equipment upon payment.
	 
	 	(d)	 	The Lease of the remaining Equipment will continue. As from the day after the
date of demand under paragraph (b) the Rent Instalments will be reduced by the

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	 	 	 	proportion which the cost of the Lost Equipment bears to the amount of the Cost of
Equipment stated in the Details Schedule (as determined by Westpac).

	 	(e)	 	The Residual Value will be reduced by the proportion of the Residual Value
equal to the proportion which the cost of the Lost Equipment bears to the amount of the
Cost of Equipment stated in the Details Schedule (as determined by Westpac).
	 
	 	(f)	 	If following a payment under clause 7.1(b), Westpac subsequently receives any
money from the insurer or any other person because the Equipment became Lost Equipment
and such money had not been taken into account in the calculation of the amount
demanded under paragraph (b), it shall, if its has received payment from the Lessee
under clause 7.1(b), pay the money received to the Lessee as soon as practicable after
deducting from such amount any tax payable or accountable for by Westpac in respect of
or by reference to the amount so received, including GST.

	7.2	 	(Partial Damage) If any of the Equipment fails to meet the return conditions set out in the
Sell Back Option, the Lessee will immediately notify Westpac. If such failure is not remedied
to Westpac’s satisfaction within 15 days of such failure (or such longer period agreed between
the Lessee and Westpac), the relevant Equipment shall be deemed to be Lost Equipment and the
provisions of clause 7.1(b) to (f) inclusive will apply.
	 
	7.3	 	(Risks): The Lessee assumes all risks and liabilities for the Equipment and their use,
maintenance, repair and storage.

	8.	 	WARRANTIES
	 
	8.1	 	(Exclusion of warranties): As between the parties, to the full extent permitted by law the
following apply:

	 	(a)	 	Westpac gives no condition, warranty or representation as to:

	 	(i)	 	the Equipment (including the design, capacity, age, existence,
location, quality, description, condition, use or ownership of the Equipment or
their merchantability, suitability or fitness); or
	 
	 	(ii)	 	the taxation and financial consequences of this Lease.

	 	 	 	None will be implied.

	 	(b)	 	Before requesting Westpac to acquire the Equipment, and before entering into
this Lease, the Lessee must:

	 	(i)	 	satisfy itself as to the above issues;
	 
	 	(ii)	 	make arrangements for maintaining the Equipment; and
	 
	 	(iii)	 	obtain from the manufacturer or supplier of the Equipment any
warranties and conditions contemplated in the Supply Contract which Westpac
requires.

	 	(c)	 	To the extent that Westpac’s liability cannot be excluded, that liability is
limited to replacement or repair of the relevant Equipment, supply of equivalent
Equipment or payment of the cost of doing so, at Westpac’s option.
	 
	 	 	 	In the case of any replacement of the relevant Equipment or any supply of equivalent
Equipment, the Lessee agrees to enter into a new Lease reasonably requested by
Westpac for this purpose.

	8.2	 	(Warranties by Lessee):

	 	(a)	 	The Lessee warrants and represents that:

	 	(i)	 	the Premises or places at which the Equipment is to be kept are
free from any Security Interest except those (if any) stated in the Details
Schedule; and

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	 	(ii)	 	it is leasing the Equipment for use by it for the purpose of a
business which the Lessee carries on (whether or not together with any other
person) and the whole or the greater part of the amount payable under this Lease
is or is expected to be a loss or outgoing necessarily incurred in carrying on
that business.

	 	(b)	 	This representation and warranty is deemed to be repeated by the Lessee to
Westpac on the date of each Lease as if made then in respect of the facts and
circumstances then subsisting.

	8.3	 	(Assignment of warranties): So far as it is legally possible, on request by the Lessee,
Westpac will assign to the Lessee the benefit of any condition or warranty given by the
manufacturer or supplier of the Equipment under the Supply Contract or the Maintenance
Contract. The Lessee will re-assign them to Westpac or a third party nominated by Westpac on
termination of this Lease.
	 
	9.	 	TERMINATION
	 
	9.1	 	(Termination):

	 	(a)	 	At any time while an Event of Default is subsisting, Westpac may terminate this
Lease by notice to the Lessee.
	 
	 	(b)	 	The Lessee may terminate this Lease by providing a notice to Westpac for
all items of Equipment under all Leases. The notice must be provided to Westpac within
30 days of the proposed termination date and be irrevocable.
	 
	 	(c)	 	If the Lessee fails to provide to Westpac a Handover Certificate for the
relevant item of Equipment within 3 months of the Shipping Date of the Lease (or such
other period agreed by Westpac) then Westpac may by notice to the Lessee terminate this
Lease.

	9.2	 	(Payments on early termination):

	 	(a)	 	In order to predetermine its liability, on early termination of this Lease
under clause 9.1 or 9.6, the Lessee will pay to Westpac an amount equal to the sum of:

	 	(i)	 	the amount of any Rent Instalments and other money then payable
under this Lease;
	 
	 	(ii)	 	the Casualty and Termination Value in respect of the Equipment
under this Lease as at the date of such termination; and
	 
	 	(iii)	 	any amount payable under clause 5.5 or 5.6. (provided that in
respect of early termination of this Lease arising as a result of a failure by
the Lessee to comply with paragraph (aa) of Schedule 2, part 2, amounts will
only be payable by the Lessee under clause 5.5 for liabilities, losses, costs or
expenses incurred by Westpac which in any way relate to the Equipment or the
exercise of its rights in respect of the Equipment).

	 	(b)	 	In the case of a termination following an Event of Default or breach of an
essential term that amount will be liquidated damages. The Lessee acknowledges that
that amount is a genuine pre-estimate of Westpac’s loss.

	9.3	 	(Payments on expiry):
	 
	 	 	Upon the expiry of this Lease on the Expiry Date the Lessee must pay to Westpac the Residual
Value of the Equipment and any other amounts then outstanding under this Lease.

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Consolidated Goldfields Limited - Master Lease Agreement

	9.4	 	(Return of Equipment on termination of Lease):

	 	(a)	 	The Lessee will at its expense within 14 days of termination or expiry of this
Lease return the Equipment:

	 	(i)	 	in a condition consistent with the performance of the Lessee’s
obligations under this Lease (and in particular complying with the Sell Back
Option); and
	 
	 	(ii)	 	to Westpac at Westpac’s address stated in the Details Schedule or
at any other address specified by Westpac,

	 	 	 	unless (in the case of expiry of this Lease) Westpac has before such expiry agreed in
writing to an extension of this Lease.
	 
	 	(b)	 	Unless otherwise agreed in writing, any extension or holding-over of this Lease
will be at the Rent Instalments and upon the terms of this Lease including the terms
relating to the Residual Value. Any such extension or holding-over will continue until
terminated by either party giving one month’s written notice to the other expiring at
any time.
	 
	 	(c)	 	Westpac may repossess any item of Equipment if it is not returned when
required. For that purpose Westpac or its representative may enter any place where the
Equipment is or it suspects it is and for such purpose may break open any gate, door or
fastening and detach and dismantle the Equipment from the Premises.

	9.5	 	(Sale of Equipment on termination or expiry):

	 	(a)	 	If any of the Equipment comes into Westpac’s possession following expiry or
termination of this Lease under clause 9.1 or clause 9.6 or on expiry of this Lease,
Westpac shall either

	 	(i)	 	exercise its rights under the Sell Back Option (if it is entitled
to do so under the terms of the Sell Back Option); or
	 
	 	(ii)	 	submit the Equipment the subject of this Lease for sale on an “as
is, where is” basis by public auction without reserve or by private treaty or
tender, provided that Westpac shall give the Lessee not less than 60 days prior
written notice thereof. The Lessee shall nominate the time and place of the sale
unless an Event of Default has occurred, in which case the time and place will
be selected by Westpac. This may, but need not, be an auction without reserve.
Westpac has no other duty as to when or how the sale must be carried out or as
to the price achieved. Nothing in this paragraph (a) or paragraph (c) affects
the obligation of the Lessee to return the Equipment as provided under Clause
9.4(a).

	 	(b)	 	If Westpac sells any of that equipment in accordance with clause 9.5(a)(ii),
Westpac must pay to the Lessee an amount equal to the gross proceeds of such sale
actually received by Westpac, less the sum of:

	 	(i)	 	all costs and expenses of and incidental to the sale (including
any costs and expenses incurred by Westpac in taking possession, storing,
moving, repairing, registering and insuring the Equipment);
	 
	 	(ii)	 	any duty or tax, and in particular GST, which Westpac incurs or
for which Westpac becomes liable or accountable upon the sale; and
	 
	 	(iii)	 	any other amount then owing by the Lessee to Westpac (including
any unpaid Residual Value or Casualty and Termination Value and any amount
payable under clause 5.3, 5.5 or 5.6).

	 	 	 	If the sum of (i), (ii) and (iii) exceeds the gross proceeds of sale actually
received, the Lessee must pay Westpac on demand an amount equal to the excess.

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Consolidated Goldfields Limited - Master Lease Agreement

	 	(c)	 	If any of the Equipment:

	 	(i)	 	has not been returned to Westpac within 14 days of the
termination or expiry of this Lease; or
	 
	 	(ii)	 	is returned to Westpac, but in Westpac’s opinion, it is not able
to sell it within a reasonable time,

	 	 	 	then the value of that Equipment will be taken to be nil. Westpac will be taken to
have disposed of that Equipment for no consideration.
	 
	 	(d)	 	The Lessee must pay Westpac on demand the amount of all costs and expenses
associated with any attempted sale of the Equipment under this Clause and any other
amount owing by the Lessee to Westpac.
	 
	 	(e)	 	Unless Westpac specifies a longer period, three months from return will be a
reasonable time for the purposes of this paragraph.

	9.6	 	(Essential terms):

	 	(a)	 	The Lessee acknowledges that the following are essential terms of this Lease:

	 	(i)	 	the Lessee paying punctually when due all moneys payable by it
under this Lease;
	 
	 	(ii)	 	the Lessee duly and punctually complying with its obligations
under Schedule 2 and under Clauses 4.4, 5.1, 6.1, 6.3, 6.4, 6.5, 6.7, 6.8 and
9.2;
	 
	 	(iii)	 	the representations and warranties by the Lessee in this Lease
(including Schedule 2); and
	 
	 	(iv)	 	if the Lessee fails to comply with any of its obligations under
this Lease (other than an obligation to pay moneys or an obligation referred to
in paragraph (ii)), the Lessee complying with that obligation or remedying that
failure to Westpac’s satisfaction within 10 days of the earlier of notice from
Westpac requiring it to comply with or remedy the same and the Lessee becoming
aware of the failure to comply.

	 	(b)	 	Any breach of any of these essential terms will constitute a repudiation of
this Lease by the Lessee entitling Westpac to exercise its rights under or in
connection with this Lease (including the right to terminate this Lease and to recover
the moneys stipulated in Clause 9.2).

	10.	 	GENERAL
	 
	10.1	 	(Application of money — set off): If the Lessee does not pay an amount when due, Westpac may
apply any money in any of the Lessee’s accounts (whether or not matured) in payment of any
amount payable by the Lessee under this Lease, but need not do so. For this purpose Westpac
may convert currencies using its normal procedures.
	 
	10.2	 	(Assignments): Westpac may assign this Lease or any of its rights under it with the consent
of the Lessee, such consent not to be unreasonably withheld. The Lessee may not assign it.
	 
	 	 	Westpac may, without having to obtain the consent of the Lessee, assign, transfer,
sub-participate or otherwise deal with all or any part of its rights under the Bank
Documents to a trustee, company or other entity which is established for the purposes of
securitisation, or a funding vehicle for Westpac or its related entities.
	 
	 	 	If an Event of Default is subsisting, the Lessee will be taken to have consented to any
transfer or assignment made by Westpac.

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Consolidated Goldfields Limited - Master Lease Agreement

	 	 	Despite any other provision of any Bank Document, Westpac may at any
time and from time to time novate all of its rights and obligations
under any Bank Document to any company which is a subsidiary of
Westpac, or Westpac Banking Corporation or a subsidiary of Westpac
Banking Corporation or to any permitted assignee under the preceding
two paragraphs. By its execution of this Agreement, the Lessee
irrevocably appoints Westpac as its agent to execute on the Lessee’s
behalf all documents necessary or in Westpac’s opinion desirable to
effect that novation.
	 
	10.3	 	(Rights and powers separate):

	 	(a)	 	Westpac can, but need not, do anything under this Lease at once or after a time
or more than once.
	 
	 	(b)	 	Westpac can exercise all its other rights and powers it has under law even if
they overlap with those in this Lease.
	 
	 	(c)	 	If Westpac does not do something when it is able to, that does not mean it is
giving up that right and cannot do it later.

	10.4	 	(Power of attorney): The Lessee appoints Westpac as its attorney. Westpac as attorney may do
everything which ought to be done by the Lessee under or in connection with this Lease or
which Westpac can do under this Lease or any law. Westpac may sub-delegate this power to any
Authorised Officer of Westpac. The Lessee may not revoke this power.
	 
	10.5	 	(Remedy): If the Lessee fails to comply with this Lease, Westpac may do anything to remedy
the breach but need not do so.
	 
	10.6	 	(Determination or certificate): Any determination by Westpac or certificate by an Authorised
Officer of Westpac will be sufficient evidence of the matter stated in it unless the contrary
is proved.
	 
	10.7	 	(Cost): The Lessee will perform its obligations under this Lease at the Lessee’s cost.
	 
	10.8	 	(Severability): Any term of this Lease which is prohibited or unenforceable in any
jurisdiction will, in that jurisdiction, be ineffective to the extent of the prohibition or
unenforceability. That will not invalidate the remaining terms of this Lease. It will not
affect that term in any other jurisdiction.
	 
	10.9	 	(Yield protection):

	 	(i)	 	Whenever Westpac determines that a Change in Law (as defined below) has the
effect of increasing its costs of funding or maintaining the Lease, or reducing its
return or amounts received in respect of the Lease then it will promptly notify the
Lessee, and the Lessee must pay Westpac the amount Westpac certifies is necessary to
compensate it. That certificate will include an outline of the calculation, and will
be conclusive and bind the Lessee in the absence of manifest error.
	 
	 	(ii)	 	If the Lessee so requests, Westpac will negotiate in good faith with a view to
finding a means of minimising the effect of the Change in Law, but it is not a defence
that the effect could have been avoided or minimised.
	 
	 	(iii)	 	A “Change in Law” is the introduction of, or a change in, any law, official
directive, ruling or request or a change in its interpretation. If it does not have
the force of law, it must be one with which responsible banks would comply. It
includes any occurrence which is a Change in Law as described above and which relates
to capital adequacy, special deposit, liquidity, reserve, prime assets, tax or
prudential requirements.

	10.10	 	(Notices):

	 	(a)	 	Any notice, demand, statement, certificate or other communication by Westpac
may be given by any Authorised Officer or any attorney authorised to do so.
	 
	 	(b)	 	Notices must be in writing, may be sent by facsimile, post or any other means
to the address or number set out in the Details Schedule or any other address or number
notified to the sender by the recipient.

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Consolidated Goldfields Limited - Master Lease Agreement

	 	(c)	 	Notices will be taken to have been given, if delivered or left at that address
on the date on which it is delivered or left.

	10.11	 	(Governing law and jurisdiction): This Lease is governed by the laws of New South Wales.
The parties submit to the non-exclusive jurisdiction of the courts with jurisdiction there.
	 
	10.12	 	(Confirmation):

	 	(a)	 	The Lessee confirms that it has not entered into this Lease relying on, or as a
result of, any statement or conduct of any kind of or on behalf of Westpac, or Westpac
Banking Corporation or any related body corporate of either of them (including any
advice, warranty, representation or undertaking). In particular, it has obtained its
own tax advice.
	 
	 	(b)	 	The Lessee acknowledges that none of Westpac, Westpac Banking Corporation and
any related body corporate of Westpac or Westpac Banking Corporation is obliged to do
anything (including disclose anything or give advice), except as expressly set out in
this Lease.

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Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 4A

FORM OF VERIFICATION CERTIFICATE FOR LESSEE

	 	 	 
	TO:

	 	Paul Crimmins
	 

	 	Head of Relationship Banking
	 

	 	Westpac Bank PNG Limited

HIDDEN VALLEY GOLD PROJECT MASTER LEASE AGREEMENT

I am a [secretary/director] of Morobe Consolidated Goldfields Limited (the Company).

Attached are true, complete and up-to-date copies of the following:

	(a)	 	An extract of minutes of a meeting of directors of the Company authorising the execution of
the Master Lease Agreement and the Intercreditor Deed and the entry into each Lease. [Major
transactions approval by special resolution under s 110 of the Companies Act 1997? (only if
applicable)]
	 
	(b)	 	A true and up-to- date copy of its [constitution/ memorandum and articles of association].
	 
	(c)	 	[Any corporate authorisations and consents necessary for the Company to execute and perform
its obligations under the Bank Documents and the Project Documents to which it is a party.]

[No corporate authorisations or consents are required for the Company to execute and perform its
obligations under the Bank Documents and the Project Documents to which it is a party.] [Note:
include either this statement or paragraph (c) above]

The specimen signatures appearing below are those of the person(s) authorised to execute the Master
Lease Agreement, the Intercreditor Deed and to request and accept Leases under the MLA and sign
other notices for the Company.

	 	 	 	 	 
	Authorised Signatory

	 	Specimen Signature	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

The Company is solvent. The corporate authorisations are in full force and effect and the Company
is not prevented by the Companies Act 1997 (PNG) from entering into and performing any agreement or
security relating to the Bank Documents and the Project Documents to which it is a party.

Dated this            day of                      2007

Secretary/Director

Print Name

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Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 4B

FORM OF VERIFICATION CERTIFICATE FOR HGMC and HGM

	 	 	 
	TO:

	 	Paul Crimmins
	 

	 	Head of Relationship Banking
	 

	 	Westpac Bank PNG Limited

HIDDEN VALLEY GOLD PROJECT GUARANTEE

I am a [secretary/director] of [Harmony Gold Mining Company Limited/HGM (Isle of Man) (Proprietary)
Limited] (company number/ABN [*]) (the Company).

Attached are true, complete and up-to-date copies of the following:

	(a)	 	[An extract of minutes of a meeting of directors of the Company approving the decision of
Morobe Consolidated Goldfields Limited to construct the Project.] [Note: for HGMC only]
	 
	(b)	 	An extract of minutes of a meeting of directors of the Company authorising the execution of
the Intercreditor Deed;
	 
	(d)	 	[Any corporate authorisations and consents necessary for the Company to execute and perform
its obligations under the Bank Documents and the Project Documents to which it is a party.]

[No corporate authorisations or consents are required for the Company to execute and perform its
obligations under the Bank Documents and the Project Documents to which it is a party.] [Note:
include either this statement or paragraph (c) above]

The Company is solvent. The corporate authorisations are in full force and effect and the Company
is not prevented by any of the Corporations Act 2001 (Cth) or the Companies Act 1997 (PNG) or any
analogous law in the jurisdiction of incorporation of the Company from entering into and performing
any agreement or security relating to the Bank Documents and Project Documents to which it is a
party.

Dated this            day of                      2007

Secretary/Director

Print Name

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Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 5

FORM OF FLOATING RATE LEASE AGREEMENT

[Date]

[*]

Morobe Consolidated Goldfields Limited (the Lessee)

Dear [*]

LEASE UNDER MASTER LEASE AGREEMENT DATED

At the Lessee’s request Westpac Bank PNG Limited (Westpac) has agreed to acquire the items
described in the Details Schedule below (the Equipment) which are manufactured or supplied directly
or indirectly by the manufacturer or supplier named in the Details Schedule.

Westpac agrees to lease the Equipment to the Lessee on the terms of this Agreement. The rate and
period of the lease are set out in the Details Schedule below.

This Lease is executed in the place named in the Details Schedule.

Please sign and return a copy of this letter by [date]. By doing so, the Lessee confirms that the
information in the following Details Schedule is correct and that it is not in breach of any of the
terms of the Master Lease Agreement between the Lessee and Westpac dated [*] 2007 (the Master Lease
Agreement).

	 	 	 	 	 
	DETAILS SCHEDULE
	 
	 	 	 	 
	1.

	 	Date of execution of this Lease.
	 	[*]
	 
	 	 	 	 
	2.

	 	Place of execution of this Lease.
	 	[*]
	 
	 	 	 	 
	3.

	 	Cost of Equipment.
	 	[*]
	 
	 	 	 	 
	4.

	 	Purchase Date.
	 	[*]
	 
	 	 	 	 
	5.

	 	Order Date.
	 	[*]
	 
	 	 	 	 
	6.

	 	Invoice No./ Date (attach copy).
	 	[*]
	 
	 	 	 	 
	7.

	 	Commencement date of this Lease.
	 	[To be the date of payment of the Order Instalment]
	 
	 	 	 	 
	8.

	 	Expiry date.
	 	[31 October 2011]
	 
	 	 	 	 
	9.

	 	Residual Value of the Equipment payable at
termination of this Lease.
	 	US$1
	 
	 	 	 	 
	10.

	 	Description of Equipment
	 	[*]

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Consolidated Goldfields Limited - Master Lease Agreement

	 	 	 	 	 
	DETAILS SCHEDULE
	 

	 	.  General Description of Equipment	 	 
	 

	 	.  Asset ID/ Identification of Equipment	 	 
	 

	 	.  Lessee’s internal code (if any)	 	 
	 
	 	 	 	 
	11.

	 	Base Rate
	 	[Interim Interest Instalments – 30-day US-Libor cash rate]
	 

	 	 	 	[Term Instalments — 90-day US-Libor cash rate]
	 
	 	 	 	 
	12.

	 	Rent Instalments (subject to adjustment)
	 	[To include:
	 

	 	 	 	(a) — monthly Interim Interest Instalments
(calculated daily for the period ending on
15th of each month (or, for the last
Interim Interest Instalment, the Delivery Date)
using the Base Rate plus the Margin in respect of
the balance of each Lease payable from the
drawdown date until the Delivery Date).
	 
	 	 	 	 
	 

	 	 	 	Interim Interest Instalments are [calculated in
advance and payable in arrears] on each Interim
Instalment Date;
	 
	 	 	 	 
	 

	 	 	 	(b) – Term Instalment from the Delivery Date to
the first Term Instalment Date calculated as the
Funded Amount multiplied by the Base Rate plus the
Margin on the Delivery Date multiplied by the
number of days from the Delivery Date to the first
Term Instalment Date.
	 
	 	 	 	 
	 

	 	 	 	Term Instalments under this paragraph (b) are
payable in arrears on the first Term Instalment
Date; and
	 
	 	 	 	 
	 

	 	 	 	(c) — Term Instalments from the first Term
Instalment Date until maturity of the Lease
(calculated for each individual Lease to amortise
the Funded Amount to the Residual Value at the
Base Rate plus the Margin over the term of the
Lease). The first Term Instalment under this
paragraph will be determined using the Base Rate
applying on the Delivery Date. Subsequent Term
Instalments will be calculated using the Base Rate
applying as at the previous Term Instalment Date.
	 
	 	 	 	 
	 

	 	 	 	Term Instalments under this paragraph are payable
quarterly in advance commencing from the first
Term Instalment Date until maturity of the
relevant individual Lease.

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Consolidated Goldfields Limited - Master Lease Agreement

	 	 	 	 	 
	DETAILS SCHEDULE
	 
	13.

	 	Rent Instalment Dates.
	 	In respect of Interim Interest Instalments, the
15th of each month and the Delivery Date (each an
Interim Instalment Date).
	 
	 	 	 	 
	 

	 	 	 	In respect of Term Instalments, each 15 March, 15
June, 15 September and 15 December after the
Delivery Date (each a Term Instalment Date).
	 
	 	 	 	 
	14.

	 	Name of manufacturer or supplier of Equipment.
	 	[*]
	 
	 	 	 	 
	15.

	 	Location of Equipment/ Premises.
	 	[*]
	 
	 	 	 	 
	16.

	 	Method to be used when calculating Casualty and	 	[*]% p.a.
	Termination Value:
	 
	 	 	 	 
	 

	 	The present value at the date of
termination of:	 	 
	 
	 	 	 	 
	 

	 	(a) the Residual Value of the Equipment;
plus	 	 
	 
	 	 	 	 
	 

	 	(b) all Rent Instalments that would have
been payable during the period of this
Lease but for the termination less all
Rent Instalments paid up to the date of
termination. The present value will be as
determined by Westpac by applying a
discount rate of:	 	 

schedule of Lease Terms

The Schedule of Lease Terms attached to and incorporated in the Master Lease Agreement dated [date]
apply to this Lease as if set out in full and as if a reference to this Lease in that schedule was
a reference to this Lease.

Signed for WESTPAC BANK PNG LIMITED by its attorney [under the authority of a
[registered*] power of attorney dated].

	 	 	 
	 
	 	 
	 

(sign here)

	 	 
	I have no notice of the revocation of the power of attorney.
	 	 
	 
	 	 
	Name:
	 	 
	Attorney
	 	 

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Consolidated Goldfields - Master Lease Agreement

Accepted and agreed by MOROBE CONSOLIDATED GOLDFIELDS LIMITED

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	Authorised Signatory

	 	Print Name	 	 
	 
	 	 	 	 
	(as per Lease Schedule 4A – Form of Verification Certificate)
	 	 	 	 

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Morobe
Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 6

Form of Drawdown Notice

	 	 	 
	TO:

	 	Paul Crimmins
	 

	 	Head of Relationship Banking
	 

	 	Westpac Bank PNG Limited

[*] — Drawdown Notice No [*]

This is an irrevocable notice under clause 2.2 of the Master Lease Agreement dated [*] 2007 (the
Master Lease Agreement).

	(1)	 	We wish to draw under the Master Lease Agreement on [*] (the Drawdown Date).

Note: Date is to be a Business Day.

	(2)	 	The total principal amount to be drawn is US$[*].

Note: Amount to comply with the limits in clause 2.2.

	(3)	 	Particulars of the drawdown are as follows:
	 
	 	 	[Shipping Instalment/PNGP]
	 
	(4)	 	Please remit the proceeds to account number [*] at [*].
	 
	(5)	 	The proceeds of the drawdown will be used to purchase the
following item(s) of Equipment: [*]
	 
	(6)	 	This notice is issued in connection with Lease [*] dated [*].
	 
	(7)	 	The expected Delivery Date is [*].
	 
	(8)	 	We represent and warrant to each Indemnified Party on behalf of the Lessee as follows:

	 	(a)	 	Except as disclosed in paragraph (c) the representations and warranties in the
Master Lease Agreement are true as though they had been made at the date of this
Drawdown Notice and the Drawdown Date specified above in respect of the facts and
circumstances then subsisting.
	 
	 	(b)	 	Except as disclosed in paragraph (c) no Event of Default or Potential Event of
Default subsists or will result from the drawing.
	 
	 	(c)	 	Details of the exceptions to paragraphs (a) and (b) are as follows: [*], and we
[have taken/propose] the following remedial action [*].
	 
	 	(d)	 	The relevant item of Equipment is:

	 	•	 	new, depreciable earthmoving or road building equipment and is to
be used by the Lessee wholly within Papua New Guinea in connection with the
Project;
	 
	 	•	 	covered by the duly executed Supply Contract (including the Sell
Back Option) and Maintenance Contract; and
	 
	 	•	 	covered by the PRI Policy.

	 	(e)	 	The proposed maintenance programmes and the Maintenance Contract are sufficient
to ensure that the relevant item of Equipment will comply with the requirements of the
Sell Back Option.
	 
	 	(f)	 	All necessary Authorisations in respect of the relevant item of Equipment have
been obtained.

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Consolidated Goldfields Limited - Master Lease Agreement

	 	 	Note: Inclusion of a statement under paragraph (c) will not prejudice the conditions
precedent in the agreement.
	 
	(9)	 	[We certify that the Project is fully funded to the date of this Drawdown Notice and the Cost
to Complete the Project as set out below is less than the Available Funding for the Project as
set out below:
	 
	 	 	Cost to Complete according to Project construction budget dated [*] (being the most recent
and current update of the budget)

	 	 	 
	Amount of construction costs, operating costs and development costs payable but
unpaid, or likely to be payable or incurred to achieve completion of the
Project:

	 	 
	 
	 	 
	The amount of debt service already payable but unpaid or likely to be payable
or incurred under the Project Documents or the Bank Documents up to and
including the estimated completion date of the Project:
	 	 
	 
	 	 
	The amount of any other costs including any liquidated damages payable to any
person already payable but unpaid or likely to be payable or incurred up to and
including the estimated completion date of the Project:
	 	 
	 
	 	 
	 
	Total Cost to Complete:
	 	 
	 

	 	 	Available Funding

	 	 	 
	Balance in bank accounts:

	 	 
	 
	 	 
	Available commitment under Project Loan Agreement:
	 	 
	 
	 	 
	Other amounts which have been committed to be provided (but not yet provided)
to the Lessee:
	 	 
	 
	 	 
	Other (specify)
	 	 
	 
	 	 
	 
	Total Available Funding:
	 	 
	 

[Note: to be deleted if adequate cash security has been provided to Westpac under clause 1.2.2]

	[(10) 	 	The following Project Document(s) ha[s/ve] been
amended or replaced: [*]
	 
	 	 	 
	 
	 	 	We attach a true complete copy of [that/those] Project Document(s). ]

Definitions in the Master Lease Agreement apply when used in this Drawdown Notice.

On behalf of Morobe Consolidated Goldmines Limited

By:

Note: 2 directors are required to sign

Dated [*]

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Morobe
Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 7

Form of Deed of Assignment

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Morobe
Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 8

Form of Lease Request

	 	 	 
	TO:

	 	Paul Crimmins
	 

	 	Head of Relationship Banking
	 

	 	Westpac Bank PNG Limited

[*] — Lease Request

This is an irrevocable notice under clause 1.2.2 of the Master Lease Agreement dated [*] 2007 (the
Master Lease Agreement).

	(1)	 	We hereby request that Westpac prepare a Lease in respect of the items of Equipment described
in this Lease Request.
	 
	(2)	 	We hereby enclose the Order Instalment in respect of the said items of Equipment in the
amount of US$[*].
	 
	(3)	 	The Lease shall apply to, and the Order Instalment will be used to purchase, the following
item(s) of Equipment: [*]
	 	 	 
	(4)	 	The:

	 	(a)	 	Order Date is [*]; and
	 
	 	(b)	 	expected Delivery Date is [*].

	(5)	 	We represent and warrant to each Indemnified Party on behalf of the Lessee as follows.

	 	(a)	 	Except as disclosed in paragraph (c) the representations and warranties in the
Master Lease Agreement are true as though they had been made at the date of this Lease
Request in respect of the facts and circumstances then subsisting.
	 
	 	(b)	 	Except as disclosed in paragraph (c) no Event of Default or Potential Event of
Default subsists or will result from the issuance of the Lease.
	 
	 	(c)	 	Details of the exceptions to paragraphs (a) and (b) are as follows: [*], and we
[have taken/propose] the following remedial action [*].
	 
	 	(d)	 	The relevant item of Equipment is:

	 	•	 	new, depreciable earthmoving or road building equipment and is to
be used by the Lessee wholly within Papua New Guinea in connection with the
Project;
	 
	 	•	 	covered by the duly executed Supply Contract (including the Sell
Back Option) and Maintenance Contract; and
	 
	 	•	 	covered by the PRI Policy.

	 	(e)	 	The proposed maintenance programmes and the Maintenance Contract are sufficient
to ensure that the relevant item of Equipment will comply with the requirements of the
Sell Back Option.
	 
	 	(f)	 	All necessary Authorisations in respect of the relevant item of Equipment have
been obtained.

	 	 	Note: Inclusion of a statement under paragraph (c) will not prejudice the conditions
precedent in the agreement.
	 
	(6)	 	We certify that the Project is fully funded to the date of this Lease Request and the Cost to
Complete the Project as set out below is less than the Available Funding for the Project as
set out below:

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Morobe
Consolidated Goldfields Limited - Master Lease Agreement

	 	 	Cost to Complete according to Project construction budget dated [*] (being the most recent
and current update of the budget)

	 	 	 
	Amount of construction costs, operating costs and development costs payable but
unpaid, or likely to be payable or incurred to achieve completion of the
Project:

	 	 
	 
	 	 
	The amount of debt service already payable but unpaid or likely to be payable
or incurred under the Project Documents or the Bank Documents up to and
including the estimated completion date of the Project:
	 	 
	 
	 	 
	The amount of any other costs including any liquidated damages payable to any
person already payable but unpaid or likely to be payable or incurred up to and
including the estimated completion date of the Project:
	 	 
	 
	 	 
	 
	Total Cost to Complete:
	 	 
	 

	 	 	Available Funding

	 	 	 
	Balance in bank accounts:

	 	 
	 
	 	 
	Available commitment under Project Loan Agreement:
	 	 
	 
	 	 
	Other amounts which have been committed to be provided (but not yet provided)
to the Lessee:
	 	 
	 
	 	 
	Other (specify)
	 	 
	 
	 	 
	 
	Total Available Funding:
	 	 
	 

[Note: to be deleted if adequate cash security has been provided to Westpac under clause 1.2.2]

	(7)	 	The following Project Document(s) ha[s/ve] been
amended or replaced: [*]
	 	 	 
	 	 	We attach a true complete copy of [that/those] Project Document(s). ]

Definitions in the Master Lease Agreement apply when used in this Lease Request.

On behalf of Morobe Consolidated Goldmines Limited

By:

Note: 2 directors are required to sign

Dated [*]

45

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 9

Form of Project Loan Agreement

46

 

Morobe
Consolidated Goldfields Limited - Master Lease Agreement

SCHEDULE 10

Form of Project Charge

47

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