Document:

exv4w18

 

Exhibit 4.18

CESSION AND PLEDGE IN SECURITY

By

HARMONY GOLD MINING COMPANY LIMITED

(as “Cedent”)

in favour of

NEDBANK LIMITED

(acting through its NEDBANK CAPITAL division)

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

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1.
	PARTIES	 	1	 
	 
	2.
	INTERPRETATION	 	1	 
	 
	3.
	INTRODUCTION	 	9	 
	 
	4.
	CESSION AND PLEDGE	 	9	 
	 
	5.	WARRANTIES AND REPRESENTATIONS IN RESPECT OF THE SHARES AND THE RIGHTS AND INTERESTS	 	10	 
	 
	6.
	DELIVERY OF DOCUMENTS	 	12	 
	 
	7.
	RIGHTS, POWERS AND PRIVILEGES ATTACHING TO THE SHARES	 	14	 
	 
	8.
	REALISATION	 	15	 
	 
	9.
	EXERCISE OF RIGHTS	 	17	 
	 
	10.
	APPROPRIATION OF PROCEEDS	 	17	 
	 
	11.
	DURATION	 	18	 
	 
	12.
	ADDITIONAL SECURITY	 	18	 
	 
	13.
	BORROWER BOUND NOTWITHSTANDING CERTAIN CIRCUMSTANCES	 	18	 
	 
	14.
	FURTHER CESSIONS	 	19	 
	 
	15.
	RIGHTS AND INTERESTS TO BE KEPT FREE OF ENCUMBRANCES	 	19	 
	 
	16.
	EXEMPTION FROM LIABILITY	 	19	 
	 
	17.
	KEEPING, INSPECTION AND DELIVERY OF RECORDS	 	20	 
	 
	18.
	CERTIFICATE OF INDEBTEDNESS	 	20	 
	 
	19.
	RENUNCIATION OF BENEFITS	 	20	 
	 
	20.
	STIPULATION FOR THE BENEFIT OF NEW LENDERS	 	21	 
	 
	21.
	NOTICES AND DOMICILIA	 	21	 

 

 

	 	 	 	 	 
	22.      GOVERNING LAW
	 	 	23	 
	 
	23.      JURISDICTION
	 	 	23	 
	 
	24.      SEVERABILITY
	 	 	23	 
	 
	25.      GENERAL
	 	 	24	 
	 
	26.      COSTS
	 	 	25	 
	 
	27.      COUNTERPARTS
	 	 	25	 
	 
	SCHEDULE 1 : SUBSIDIARIES
	 	 	3	 

 

 

CESSION AND PLEDGE IN SECURITY

	1.	 	PARTIES

	1.1	 	The Parties to this Agreement are:

	1.1.1	 	HARMONY GOLD MINING COMPANY LIMITED;
	 
	1.1.2	 	NEDBANK LIMITED (acting through its NEDBANK CAPITAL division).

	1.2	 	The Parties agree as set out below.

	2.	 	INTERPRETATION

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

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

 

 

Page 2

	2.2.3	 	“Cedent” means Harmony Gold Mining Company Limited (Registration No. 1950/038232/06), a
public company duly incorporated in accordance with the company laws of South Africa;
	 
	2.2.4	 	“Claims” means all current and future claims that the Cedent may have against the
Subsidiaries by virtue of its shareholding in the Subsidiaries, whether in the form of
shareholder loans or otherwise and the benefit of any security interest for the time being
held by the Cedent in respect of such claims;
	 
	2.2.5	 	“Deposit Account” means any and all amounts standing to the credit of the Cedent from time
to time in relation to the bank account held with Nedbank having the following details:

	2.2.5.1	 	Account Name : Domestic Treasury Suspense
	 
	 	 	Account Re: 7881 512 733;

	 
	2.2.5.2	 	Account No. : 1766-000-029; and
	 
	2.2.5.3	 	Branch Code : 176605.

	2.2.6	 	“Deposit Rate” means the publicly quoted overnight call deposit rate of interest (per
centum, per annum, compounded monthly in arrears and calculated on a 365 day year factor
(irrespective of whether or not the year is a leap year)) from time to time published by
Nedbank as certified by any manager of Nedbank (whose appointment and/or designation need not
be proved) and whose certificate shall constitute prima facie proof of such rate;

 

 

Page 3

	2.2.7	 	“Documents of Title” means the share certificates and other documents of title referred to
in clauses 6.1.1 and 6.1.2 below;
	 
	2.2.8	 	“Effective Date” means the later of:

	2.2.8.1	 	28 September 2007; and
	 
	2.2.8.2	 	the date of Financial Close;

	2.2.9	 	“Event of Default” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.10	 	“Facility” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.11	 	“Facility Agent” means Nedbank;
	 
	2.2.12	 	“Financial Close” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.13	 	“Finance Documents” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.14	 	“Finance Parties” means the Lenders and the Facility Agent, and “Finance Party” means any
one of them, as the context requires;
	 
	2.2.15	 	“Guarantors” shall bear the meaning set out in the Senior Facility Agreement;
	 
	2.2.16	 	“Lenders” shall bear the meaning set out in the Senior Facility Agreement, and being as at
the Signature Date the Original Lender;

 

 

Page 4

	2.2.17	 	“Nedbank” means Nedbank Limited (acting through its Nedbank Capital division) (Registration
No. 1951/000009/06), a public company and registered bank duly incorporated in accordance with
the company and banking laws of South Africa;
	 
	2.2.18	 	“Original Lender” means Nedbank;
	 
	2.2.19	 	“Parties” means the Finance Parties and the Cedent and “Party” shall, as the context
requires, be a reference to either one of them;
	 
	2.2.20	 	“Rights and Interests” means all the Cedent’s rights of any nature whatsoever to and
interest of any nature whatsoever in:

	2.2.20.1	 	the Deposit Account;
	 
	2.2.20.2	 	all monies or amounts at any time standing to the credit of the Deposit Account;
	 
	2.2.20.3	 	the Shares; and
	 
	2.2.20.4	 	the Claims

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

	2.2.21	 	“Secured Obligations” means any and all indebtedness or obligations of the Cedent to the
Finance Parties (whether actual or contingent, present or future) arising out of the Finance
Documents;

 

 

Page 5

	2.2.22	 	“Senior Facility Agreement” means the Senior Facility Agreement entered into between the
Cedent, Nedbank (acting in its capacity as “Original Lender” and as “Facility Agent”), African
Rainbow Minerals Gold Limited, Evander Gold Mines Limited, Randfontein Estates Limited, Avgold
Limited, ARMgold/Harmony Joint Investment Company (Proprietary) Limited and ARMgold/Harmony
Freegold Joint Venture Company (Proprietary) Limited on or about the same date as this
Agreement pursuant to which Nedbank grants the Cedent a loan facility of R2 000 000 000 (two
billion Rand);
	 
	2.2.23	 	“Shares” means the ordinary shares in the issued share capital of the Subsidiaries, from
time to time, which are held by the Cedent (including, but not limited to, any such shares
which may be issued or transferred to the Cedent in the future);
	 
	2.2.24	 	“Signature Date” means the date of the signature of the Party last signing this Agreement in
time;
	 
	2.2.25	 	“South Africa” means the Republic of South Africa as constituted from time to time;
	 
	2.2.26	 	“Subsidiaries” means the companies listed in Schedule 1 hereto and “Subsidiary” means any
one of them, as the context requires;

	2.3	 	Any reference in this Agreement to:

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

 

 

Page 6

	2.3.2	 	a “clause” shall, subject to any contrary indication, be construed as a reference to a
clause hereof;
	 
	2.3.3	 	a “holding company” shall be construed in accordance with the Companies Act, No. 61 of 1973
(as amended);
	 
	2.3.4	 	“law” shall be construed as any law (including common or customary law) or statute,
constitution, decree, judgment, treaty, regulation, directive, bye-law, order or any other
legislative measure of any government, supranational, local government, statutory or
regulatory body or court;
	 
	2.3.5	 	a “Schedule” or “Annexure” shall, subject to any contrary indication, be construed as a
reference to a schedule or annexure hereof;
	 
	2.3.6	 	a “subsidiary” shall be construed in accordance with the Companies Act, No. 61 of 1973 (as
amended);
	 
	2.3.7	 	“tax” shall be construed so as to include any tax, levy, impost or other charge of a similar
nature (including, without limitation, any penalty or interest payable in connection with any
failure to pay or delay in paying any of the same);
	 
	2.3.8	 	a “person” shall be construed as a reference to any person, firm, company, corporation,
government, state or agency of a state or any association or partnership (whether or not
having separate legal personality) of two or more of the foregoing.

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

 

 

Page 7

	2.4.1	 	if any provision in a definition is a substantive provision conferring rights or imposing
obligations on any Party, notwithstanding that it appears only in this interpretation clause,
effect shall be given to it as if it were a substantive provision of this Agreement;
	 
	2.4.2	 	when any number of days is prescribed in this Agreement, same shall be reckoned exclusively
of the first and inclusively of the last day unless the last day falls on a day which is not a
Business Day, in which case the last day shall be the next succeeding Business Day;
	 
	2.4.3	 	in the event that the day for payment of any amount due in terms of this Agreement should
fall on a day which is not a Business Day, the relevant day for payment shall be the previous
Business Day;
	 
	2.4.4	 	in the event that the day for performance of any obligation to be performed in terms of this
Agreement should fall on a day which is not a Business Day, the relevant day for performance
shall be the subsequent Business Day;
	 
	2.4.5	 	any reference in this Agreement to an enactment is to that enactment as at the Signature
Date and as amended or re-enacted from time to time;
	 
	2.4.6	 	any reference in this Agreement to this Agreement or any other agreement or document shall
be construed as a reference to this Agreement or, as the case may be, such other agreement or
document as say may have been, or may from time to time be, amended, varied, novated or
supplemented;
	 
	2.4.7	 	references to day/s, month/s or year/s shall be construed as Gregorian calendar day/s,
month/s or year/s;

 

 

Page 8

	2.4.8	 	a reference to a Party includes that Party’s successors-in-title and permitted assigns.

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

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

	2.6	 	The Schedules or Annexures to this Agreement form an integral part hereof and words and
expressions defined in this Agreement shall bear, unless the context otherwise requires, the
same meaning in such Schedules or Annexures. To the extent that there is any conflict between
the Schedules or Annexures to this Agreement and the provisions of this Agreement, the
provisions of this Agreement shall prevail.
	 
	2.7	 	Where any term is defined within the context of any particular clause in this Agreement, the
term so defined, unless it is clear from the clause in question that the term so defined has
limited application to the relevant clause, shall bear the same meaning as ascribed to it for
all purposes in terms of this Agreement, notwithstanding that that term has not been defined
in this interpretation clause.
	 
	2.8	 	The rule of construction that, in the event of ambiguity, the contract shall be interpreted
against the Party responsible for the drafting thereof, shall not apply in the interpretation
of this Agreement.
	 
	2.9	 	The expiration or termination of this Agreement shall not affect such of the provisions of
this Agreement as expressly provide that they will operate

 

 

Page 9

	 	 	after any such expiration or termination or which of necessity must continue to have effect
after such expiration or termination, notwithstanding that the clauses themselves do
not expressly provide for this.

	2.10	 	This Agreement shall be binding on and enforceable by the estates, heirs, executors,
administrators, trustees, permitted assigns or liquidators of the Parties as fully and
effectually as if they had signed this Agreement in the first instance and reference to any
Party shall be deemed to include such Party’s estate, heirs, executors, administrators,
trustees, permitted assigns or liquidators, as the case may be.
	 
	2.11	 	The use of any expression in this Agreement covering a process available under South African
law such as winding-up (without limitation eiusdem generis) shall, if any of the Parties to
this Agreement is subject to the law of any other jurisdiction, be construed as including any
equivalent or analogous proceedings under the law of such other jurisdiction.
	 
	2.12	 	Where figures are referred to in numerals and in words, if there is any conflict between the
two, the words shall prevail.

	3.	 	INTRODUCTION

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

 

 

Page 10

	4.	 	CESSION AND PLEDGE

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

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

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

	5.1.1	 	warrants and represents that it is and will be the sole and beneficial owner of all the
Shares and the Rights and Interests to the exclusion of all others and (save as set out in the
Finance Documents) no person has an option or right of refusal over those Shares or the Rights
and Interests;
	 
	5.1.2	 	warrants and represents that the Shares pledged and the Rights and Interests ceded to the
Finance Parties under this Agreement have not been pledged, ceded (either outright or as
security), discounted, factored, mortgaged under notarial bond or otherwise, or otherwise
disposed of, nor are they subject to any other rights in favour of any

 

 

Page 11

	 	 	person (including without limitation any rights of pre-emption) other than in terms
of and as set out in the Finance Documents;
	 
	5.1.3	 	warrants and represents that the Shares are fully paid for;

	5.1.4	 	warrants and represents that all obligations undertaken by it under this Agreement have been
authorised by all necessary corporate action and all necessary legislative, administrative or
other governmental action;
	 
	5.1.5	 	warrants and represents that the issue of the pledge and cession under this Agreement and
the fulfilment of its obligations in accordance with the terms thereof do not contravene any
law, regulation or any contractual obligation binding on it;
	 
	5.1.6	 	agrees and undertakes not to exercise any and all rights in respect of the Shares and the
Rights and Interests which it may have in conflict with the rights of the Finance Parties
under this Agreement;
	 
	5.1.7	 	acknowledges that it may not cede, assign, transfer or pledge or in any other manner
encumber or deal with the Shares or the Rights and Interests without the prior written consent
of the Facility Agent;
	 
	5.1.8	 	agrees that on the occurrence of any Event of Default, it will forthwith pay over to the
Facility Agent (on behalf of the Finance Parties) any interest, dividend or other benefits of
any nature accrued and/or received in respect of the Shares and the Rights and Interests
relating to the period after such a breach by depositing the same into a nominated account as
the Facility Agent may from time to time direct in writing; and

 

 

Page 12

	5.1.9	 	undertakes and agrees to the extent possible to prevent any variation of the value of, or
rights relating to, the Shares and the Rights and Interests or any of them without the prior
written consent of the Facility Agent.

	5.2	 	Should any of the Shares and/or the Rights and Interests be subject to any right in breach of
the representation and warranty in clause 5.1.2, then, without prejudice to any other rights
that the Finance Parties may have, any reversionary or other interests the Cedent may have in
the said Shares and/or Rights and Interests, as the case may be, are also ceded jointly and
severally to the Finance Parties, and if the holder of that cession or right is entitled to
possession of any of the documents referred to in clause 6 below, and it exercises that right,
then the Cedent shall deliver photocopies of the documents to Facility Agent (on behalf of the
Finance Parties), and as soon as the holder of that cession or right ceases to be entitled to
possession or gives up possession, the Cedent shall deliver the relevant documents to the
Facility Agent (on behalf of all the Finance Parties).
	 
	5.3	 	It is recorded that Nedbank, as the ‘Facility Agent” and the “Original Lender” has entered
into the Finance Documents on the strength of and relying on the warranties and
representations in this clause 5, each of which shall be deemed to be separate warranties and
representations, given without prejudice to any other warranty or representation, and deemed
to be material representations inducing the Finance Parties to enter into the Finance
Documents to which they are a party.

	6.	 	DELIVERY OF DOCUMENTS

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

 

 

Page 13

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

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

	6.2	 	It is agreed the Facility Agent will hold possession of the Documents of Title on behalf of
all of the Finance Parties.
	 
	6.3	 	The Facility Agent on behalf of all of the Finance Parties shall be entitled to retain
possession of the Documents of Title, and to deal with them in accordance with the provisions
of the Finance Documents until all the Secured Obligations have been unconditionally and
irrevocably finally discharged or released, as the case may be, whereupon the Documents of
Title shall be returned to the Cedent.
	 
	6.4	 	When Rights and Interests are evidenced by a document, or when the Cedent holds security for
any obligation in respect of such Rights and Interests and the security is evidenced by a
document, the Cedent shall immediately deliver a certified copy of that document to the
Facility Agent.
	 
	6.5	 	In addition to the documents referred to above, the Cedent shall deliver to the Facility
Agent any other documents relating to the Shares and the Rights and Interests for which the
Facility Agent may at any time reasonably call, which documents shall be delivered to the
Facility Agent within a reasonable period, as agreed between the Facility Agent and the
Cedent, and, failing such agreement, within 10 (ten) Business Days.

 

 

Page 14

	6.6	 	The Cedent shall generally do everything that may be required by the Facility Agent for the
purposes of and to give effect to this Agreement, failing which the Facility Agent may, if
possible, attend thereto and recover from the Cedent any expenses incurred in doing so.
	 
	6.7	 	The rights of the Finance Parties under this Agreement are joint and several and,
accordingly, subject to clauses 8 and 9, the Facility Agent on behalf of any Finance Party
shall, subject to the terms of the Finance Documents, be entitled to exercise such Finance
Party’s rights in terms of this Agreement independently of any other Finance Party, without
recourse to any other Finance Party in satisfaction of the claims of such Finance Party
against the Cedent under this Agreement.

	7.	 	RIGHTS, POWERS AND PRIVILEGES ATTACHING TO THE SHARES

	7.1	 	This pledge and cession operates in respect of all rights, powers and privileges attaching to
the Shares and Rights and Interests, including but not limited to those set out in 7.2 below
and such rights, powers and privileges shall accordingly vest in the Finance Parties or the
Facility Agent on behalf of the Finance Parties with the power to exercise them (jointly and
severally) either in their own names or in the name of the Cedent, upon the occurrence of an
Event of Default. Alternatively, the Cedent shall, if the Facility Agent so directs, exercise
those rights, powers and privileges in its own name in accordance with the Facility Agent’s
directions upon the occurrence of an Event of Default.
	 
	7.2	 	Such rights, powers and privileges attaching to the Shares include (but shall not be limited
to) the following:

	7.2.1	 	to receive payment of that portion of the dividends and other benefits which become due in
respect of the Shares from time to time;

 

 

Page 15

	7.2.2	 	the right to exercise any rights to appoint directors to the Boards of the Subsidiaries; and
	 
	7.2.3	 	the right to attend every general meeting of the shareholders of the Subsidiaries and to
exercise the votes attaching to the Shares at such meeting.

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

	8.	 	REALISATION

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

	8.1.1	 	exercise all the rights, powers and privileges attaching to the Shares and the Rights and
Interests;
	 
	8.1.2	 	authorise any director of the Facility Agent to sign, on behalf of the Cedent and in the
name of the Cedent, any security transfer form or other document that may be necessary to give
effect to any sale of any of the Shares or Rights and Interests made by the Finance Parties in
terms of this clause 8;
	 
	8.1.3	 	receive payment for, delivery of and/or performance in respect of, the Shares or Rights and
Interests in its own name;

 

 

Page 16

	8.1.4	 	sell or purchase or otherwise realise or transfer all or some of the Shares or the Rights
and Interests on such terms and in such manner as the Facility Agent may in their sole
discretion decide;
	 
	8.1.5	 	institute any legal proceedings which the Facility Agent may deem necessary in connection
with any sale, purchase or other transfer of any of the Shares and Rights and Interests;
and/or
	 
	8.1.6	 	compromise any Right and Interest, grant any extension or other indulgence in respect of any
such Right and Interest, or agree to vary the terms of any such Right and Interest, or realise
any security or suretyship held for any such Right and Interest.

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

	8.2.1	 	notify all persons required by the Facility Agent in writing that payment for, delivery of
or performance in respect of the relevant Shares and Rights and Interests must be made to the
Facility Agent and that payment, delivery or performance to the Cedent or to anyone else will
not constitute valid payment, delivery or performance, and the Facility Agent shall be
entitled to do likewise. The Cedent shall on demand by the Facility Agent provide proof that
such notification has been duly given;
	 
	8.2.2	 	refuse to accept any payment, delivery or performance tendered in respect of any of the
Shares and Rights and Interests and order that such payment, delivery or performance be
tendered to the Facility Agent;

 

 

Page 17

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

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

	9.	 	EXERCISE OF RIGHTS
	 
	 	 	The rights of the Finance Parties under this Agreement:

	9.1	 	may be exercised as often as necessary;

 

 

Page 18

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

	10.	 	APPROPRIATION OF PROCEEDS

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

	11.	 	DURATION

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

	12.	 	ADDITIONAL SECURITY

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

 

 

Page 19

	13.	 	BORROWER BOUND NOTWITHSTANDING CERTAIN CIRCUMSTANCES

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

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

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

	14.	 	FURTHER CESSIONS

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

 

 

Page 20

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

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

	17.	 	KEEPING, INSPECTION AND DELIVERY OF RECORDS
	 
	 	 	The Cedent shall at all times keep up-to-date records of the Rights and Interests ceded as
security to the Finance Parties and shall comply with any reasonable directions the Facility
Agent may give in regard to the keeping of those records.
	 
	18.	 	CERTIFICATE OF INDEBTEDNESS
	 
	 	 	A certificate signed by an officer of any of the Facility Agent whose appointment need not be
proved, reflecting:

	18.1	 	the amount owing by the Cedent to the Finance Parties under the Finance Documents and the due
date for payment of such amounts; and/or

 

 

Page 21

	18.2	 	the amount(s) realised by the realisation or sale of all or any of the Cedent’s Security
Rights and the date(s) of realisation thereof;

	 	 	will be prima facie evidence of the contents thereof.

	19.	 	RENUNCIATION OF BENEFITS
	 
	 	 	The Cedent hereby renounces the legal benefits and exceptions of non numeratae pecuniae, non
causa debiti, revision of accounts and errore calculi, the Cedent declaring itself to be
fully acquainted with the full meaning and effect of this renunciation.
	 
	20.	 	STIPULATION FOR THE BENEFIT OF NEW LENDERS
	 
	 	 	The provisions of this Agreement, which confer benefits upon the Finance Parties, shall
constitute stipulations for the benefit of any person becoming a Lender in accordance with
the provisions of clause 26 (Change of Party) of the Senior Facility Agreement, capable of
acceptance by such person at any time. To the extent that a splitting of claims arises as a
result of the provisions of this clause 20, the Borrower hereby consents to such splitting of
claims.
	 
	21.	 	NOTICES AND DOMICILIA

	21.1	 	Notices

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

	 	 	 	 	 	 	 
	21.1.1.1

	 	Original Lender
	 	:
	 	4th Floor, F Block
	 

	 	 	 	 	 	135 Rivonia Road
	 

	 	 	 	 	 	SANDTON
	 
	 	 	 	 	 	 
	 

	 	Telefax No.
	 	:
	 	(011) 295 3902

 

 

Page 22

	 	 	 	 	 	 	 
	 

	 	Attention
	 	:
	 	Head: Project Management
	 
	 	 	 	 	 	 
	21.1.1.2

	 	Facility Agent:
	 	 	 	4th Floor, F Block

135 Rivonia Road

SANDTON
	 
	 	 	 	 	 	 
	 

	 	Telefax No.
	 	:	 	(011) 295 3902

	 

	 	Attention
	 	:	 	Head: Project Management Cedent:
	 

	 	Block 27
	 	 
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	Randfontein Office Park

Cnr Main Reef Road and Ward Avenue

RANDFONTEIN
	 
	 	 	 	 	 	 
	 

	 	Telefax No.
Attention
	 	:

:
	 	(011) 27 11 411 2070

The Company Secretary

	21.1.2	 	Any notice or communication required or permitted to be given in terms of this Agreement
shall be valid and effective only if in writing but it shall be competent to give notice by
telefax transmitted to its telefax number set out opposite its name above.
	 
	21.1.3	 	Either Party may by written notice to the other Party change its chosen address and/or
telefax number for the purposes of clause 21.1.1 to any other address) and/or telefax number,
provided that the change shall become effective on the 14th (fourteenth) day after
the receipt of the notice by the addressee.
	 
	21.1.4	 	Any notice to a Party contained in a correctly addressed envelope and delivered by hand to a
responsible person during ordinary business hours at its chosen physical address in terms of
clause 21.1.1, shall be deemed to have been received on the day of delivery.
	 
	21.1.5	 	Any notice by telefax to a Party at its telefax number shall be deemed to have been received
on the 1st (first) Business Day after the date of transmission.

 

 

Page 23

	21.1.6	 	Notwithstanding anything to the contrary herein contained, a written notice or communication
actually received by a Party shall be an adequate written notice or communication to it,
notwithstanding that it was not sent to or delivered at its chosen address and/or telefax
number.

	21.2	 	Domicilia

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

	22.	 	GOVERNING LAW
	 
	 	 	The entire provisions of this Agreement shall be governed by and construed in accordance with
the laws of South Africa.
	 
	23.	 	JURISDICTION
	 
	 	 	The Parties hereby irrevocably and unconditionally consent to the non-exclusive jurisdiction
of the Witwatersrand Local Division of the High Court of South Africa (or any successor to
that division) in regard to all matters arising from this Agreement.

 

 

Page 24

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

	25.1	 	This document constitutes the sole record of the agreement between the Parties in regard to
the subject matter thereof.
	 
	25.2	 	No Party shall be bound by any express or implied term, representation, warranty, promise or
the like, not recorded herein.
	 
	25.3	 	No addition to, variation or consensual cancellation of this Agreement and no extension of
time, waiver or relaxation or suspension of any of the provisions or terms of this Agreement
shall be of any force or effect unless in writing and signed by or on behalf of all the
Parties.
	 
	25.4	 	No latitude, extension of time or other indulgence which may be given or allowed by any Party
to any other Party in respect of the performance of any obligation hereunder or enforcement of
any right arising from this Agreement and no single or partial exercise of any right by any
Party shall under any circumstances be construed to be an implied consent by such

 

 

Page 25

	 	 	Party or operate as a waiver or a novation of, or otherwise affect any of that Party’s
rights in terms of or arising from this Agreement or estop such Party from enforcing,
at any time and without notice, strict and punctual compliance with each and every
provision or term hereof.

	25.5	 	The Parties undertake at all times to do all such things, to perform all such acts and to
take all such steps and to procure the doing of all such things, the performance of all such
actions and the taking of all such steps as may be open to them and necessary for or
incidental to the putting into effect or maintenance of the terms, conditions and import of
this Agreement.
	 
	25.6	 	Save as is specifically provided in this Agreement, no Party shall be entitled to cede or
delegate any of its rights or obligations under this Agreement without the prior written
consent of the other Parties affected by such transfer of rights or obligations, which consent
may not unreasonably be withheld or delayed.

	26.	 	COSTS

	26.1	 	The Cedent shall bear the costs of and incidental to the negotiation, preparation and
execution of this Agreement.
	 
	26.2	 	All legal costs incurred by either Party in consequence of any default of the provisions of
this Agreement by the other Party shall be payable on demand by the defaulting Party the on
scale as between attorney and own client and shall include collection charges, the costs
incurred by the non-defaulting Party in endeavouring to enforce such rights prior to the
institution of legal proceedings and the costs incurred in connection with the satisfaction or
enforcement of any judgement awarded in favour of the non-defaulting Party in relation to its
rights in terms of or arising out of this Agreement.

 

 

Page 26

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

THE NEXT PAGE IS THE SIGNATURE PAGE

 

 

SIGNED at SANDTON on this the 27th day of SEPTEMBER 2007.

	 	 	 	 	 
	 

	 	For and on behalf of

NEDBANK LIMITED (acting through its NEDBANK CAPITAL division)

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

	 	 

Name:
	 	 
	 

	 	Capacity:	 	 
	 

	 	Who warrants his authority hereto	 	 
	 
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Capacity:	 	 
	 

	 	Who warrants his authority hereto	 	 

 

 

SIGNED at SANDTON on this the 27th day of SEPTEMBER 2007.

	 	 	 	 	 
	 

	 	For and on behalf of

HARMONY GOLD MINING COMPANY LIMITED

(as “Cedent”)
	 	 
	 
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Capacity:	 	 
	 

	 	Who warrants his authority hereto	 	 

 

 

SCHEDULE 1

SUBSIDIARIES

	1.	 	African Rainbow Minerals Gold Limited;
	 
	2.	 	Evander Gold Mines Limited;
	 
	3.	 	ARMgold/Harmony Joint Investment Company (Proprietary) Limited;
	 
	4.	 	Armgold/Harmony Freegold Joint Venture Company (Proprietary) Limited;
	 
	5.	 	Randfontein Estates Limited;
	 
	6.	 	Avgold Limited.exv4w19

 

 Exhibit 4.19

SUBSCRIPTION AGREEMENT

between

RANDFONTEIN ESTATES LIMITED

HARMONY GOLD MINING COMPANY LIMITED

EVANDER GOLD MINES LIMITED

ARMGOLD/HARMONY FREEGOLD JOINT VENTURE COMPANY (PROPRIETARY) LIMITED

AVGOLD LIMITED

ARMGOLD HARMONY JOINT INVESTMENT COMPANY (PROPRIETARY) LIMITED

and

FIRSTRAND BANK LIMITED

(acting through its Rand Merchant Bank division)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1
	 	INTERPRETATION	 	1
	 
	 	 	 	 
	2
	 	INTRODUCTION	 	16
	 
	 	 	 	 
	3
	 	SUSPENSIVE CONDITIONS	 	16
	 
	 	 	 	 
	4
	 	SUBSCRIPTION, ALLOTMENT AND ISSUE OF PREFERENCE SHARES	 	18
	 
	 	 	 	 
	5
	 	PURPOSE	 	19
	 
	 	 	 	 
	6
	 	WARRANTIES, REPRESENTATIONS AND UNDERTAKINGS	 	19
	 
	 	 	 	 
	7
	 	POSITIVE AND NEGATIVE UNDERTAKINGS	 	26
	 
	 	 	 	 
	8
	 	REPORTING UNDERTAKINGS	 	31
	 
	 	 	 	 
	9
	 	UNDERTAKINGS BY AHJIC	 	32
	 
	 	 	 	 
	10
	 	PUT OPTION	 	33
	 
	 	 	 	 
	11
	 	GUARANTEES	 	36
	 
	 	 	 	 
	12
	 	RIGHT OF FIRST REFUSAL	 	40
	 
	 	 	 	 
	13
	 	GENERAL PROVISIONS APPLICABLE TO PAYMENTS	 	40
	 
	 	 	 	 
	14
	 	INDEMNITY	 	41
	 
	 	 	 	 
	15
	 	CERTIFICATE	 	41
	 
	 	 	 	 
	16
	 	CESSION	 	42
	 
	 	 	 	 
	17
	 	DOMICILIUM AND NOTICES	 	43
	 
	 	 	 	 
	18
	 	CONFIDENTIALITY	 	44
	 
	 	 	 	 
	19
	 	SEVERABILITY	 	46
	 
	 	 	 	 
	20
	 	INDEPENDENT ADVICE	 	46
	 
	 	 	 	 
	21
	 	GOVERNING LAW AND JURISDICTION	 	46
	 
	 	 	 	 
	22
	 	GENERAL	 	47
	 
	 	 	 	 
	23
	 	COSTS AND FEES	 	48

 i

 

 

ANNEXURES

ANNEXURE A — RESOLUTION OF BOARD OF DIRECTORS OF ARMGOLD HARMONY JOINT INVESTMENT COMPANY
(PROPRIETARY) LIMITED

ANNEXURE B — RESOLUTION OF BOARD OF DIRECTORS OF ARMGOLD/HARMONY FREEGOLD JOINT VENTURE COMPANY
(PROPRIETARY) LIMITED

ANNEXURE C — RESOLUTION OF BOARD OF DIRECTORS OF AVGOLD LIMITED

ANNEXURE D — RESOLUTION OF BOARD OF DIRECTORS OF RANDFONTEIN ESTATES LIMITED

ANNEXURE E — RESOLUTION OF BOARD OF DIRECTORS OF EVANDER GOLD MINES LIMITED

ANNEXURE
F  — RESOLUTION OF BOARD OF DIRECTORS OF HARMONY GOLD MINING COMPANY LIMITED

ANNEXURE G — RIGHTS, PRIVILEGES AND CONDITIONS ATTACHING TO PREFERENCE SHARES

ANNEXURE H — SUSPENSIVE CONDITIONS

ANNEXURE I — FORM OF CESSION IN SECURITATEM DEBITI

ANNEXURE J — FORM OF ASSIGNMENT SCHEDULE

ii

 

 

SUBSCRIPTION AGREEMENT

between

RANDFONTEIN ESTATES LIMITED

HARMONY GOLD MINING COMPANY LIMITED

EVANDER GOLD MINES LIMITED

ARMGOLD/HARMONY FREEGOLD JOINT VENTURE COMPANY (PROPRIETARY) LIMITED

AVGOLD LIMITED

ARMGOLD HARMONY JOINT INVESTMENT COMPANY (PROPRIETARY) LIMITED

and

FIRSTRAND BANK LIMITED

(acting through its Rand Merchant Bank division)

	1	 	INTERPRETATION
	 
	 	 	In this Agreement, clause headings are for convenience and shall not be used in its
interpretation and, unless the context clearly indicates a contrary intention, -

	1.1	 	an expression which denotes -

	1.1.1	 	any gender includes the other genders;
	 
	1.1.2	 	a natural person includes an artificial or juristic person and vice versa;
	 
	1.1.3	 	the singular includes the plural and vice versa;

	1.2	 	the following expressions shall bear the meanings assigned to them below and cognate
expressions shall bear corresponding meanings -

1

 

	1.2.1	 	“Act” – the Companies Act, 61 of 1973;
	 
	1.2.2	 	“ARMGold” – African Rainbow Minerals Gold Limited (registration number 1997/015869/06), a
public company with limited liability duly incorporated in the RSA;
	 
	1.2.3	 	“Agreement” – the subscription agreement as set out herein, together with all annexures
hereto;
	 
	1.2.4	 	“AHJIC” – ARMGold Harmony Joint Investment Company (Proprietary) Limited (registration
number 2002/032163/07), a private company with limited liability duly incorporated in the RSA,
herein represented by N Qangule, she being duly authorised thereto under and by virtue of a
resolution of the board of directors of AHJIC, a copy of which is annexed hereto as
Annexure A;
	 
	1.2.5	 	“Applicable Law” – any and all statutes and subordinate legislation, common law,
regulations, ordinances and by-laws, directives, codes of practice, circulars, guidance
notices, judgments and decisions of any competent authority, court, governmental,
inter-governmental or supra national body, agency, department or regulatory, self-regulatory
or other authority or organisation and other similar provisions from time to time, compliance
with which is mandatory;
	 
	1.2.6	 	“ARMGold/Harmony JV” – ARMGold/Harmony Freegold Joint Venture Company (Proprietary) Limited
(registration number 2001/029602/07), a private company with limited liability duly
incorporated in the RSA, herein represented by N Qangule, she being duly authorised thereto
under and by virtue of a resolution of the board of directors of ARMGold / Harmony JV, a copy
of which is annexed hereto as Annexure B;
	 
	1.2.7	 	“Asset” of or in relation to any person – includes any and all present and future
properties, revenues and rights of every description;
	 
	1.2.8	 	“Avgold” – Avgold Limited (registration number 1990/007025/06), a public company with
limited liability duly incorporated in the RSA, herein represented by N Qangule, she being
duly authorised thereto under and

2

 

	 	 	by virtue of a resolution of the board of directors of Avgold, a copy of which is
annexed hereto as Annexure C;
	 
	1.2.9	 	“Bridge Loan Agreement” – the written loan agreement concluded between the Company, the
Subscriber, Harmony, Evander, ARMGold, ARMGold/Harmony JV, AHJIC and Avgold, in terms of which
the Subscriber lent and advanced to Harmony an amount of ZAR1 000 000 000, dated 11 March
2006;
	 
	1.2.10	 	“Business Day” – each calendar day other than Saturdays, Sundays and official public
holidays in the RSA;
	 
	1.2.11	 	“Cession in Securitatem Debiti Agreement” – the written cession in securitatem debiti and
pledge agreement concluded between the Subscriber and AHJIC on the Signature Date, in terms of
which AHJIC pledges and cedes in security all of its right, title and interest in and to the
Gold Fields Shares to the Subscriber;
	 
	1.2.12	 	“Company” – Randfontein Estates Limited (registration number 1889/000251/06), a public
company duly incorporated in the RSA, herein represented by N Qangule, she being duly
authorised thereto under and by virtue of a resolution of the board of directors of the
Company, a copy of which is annexed hereto as Annexure D;
	 
	1.2.13	 	“Distribution” made by any person – any dividend or capital distribution (in whatsoever form
and including share buy-backs) made to or for the account of the members or shareholders of or
holders of beneficial interests in that person;
	 
	1.2.14	 	“EBITDA” – means operating income before interest, Tax, depreciation and amortisation of any
intangibles;
	 
	1.2.15	 	“Encumbrance” – any -

	1.2.15.1	 	mortgage, pledge, lien, assignment, cession conferring security, hypothecation, security
interest, preferential right, trust

3

 

	 	 	arrangement or any other encumbrance securing any obligation of any person;
	 
	1.2.15.2	 	agreement, arrangement or transaction under or pursuant to which a security interest is
created and/or security is granted over any Asset and/or any money or claims to, or for the
benefit of, a bank or other account may be applied, set-off or made subject to a combination
of accounts so as to effect a full or partial discharge of any sum owned or payable to any
person; or
	 
	1.2.15.3	 	other type of preferential agreement, arrangement or transaction (including any title
transfer and retention arrangement), the effect of which is the creation of a security
interest;

	1.2.16	 	“Equity Instrument” – includes any ordinary share, non-redeemable preference share, deferred
share or other similar equity instrument, and any instrument which is or becomes convertible
into an ordinary share, a non-redeemable preference share, a deferred share or other similar
equity instrument;
	 
	1.2.17	 	“Evander” – Evander Gold Mines Limited (registration number 1963/006226/06), a public
company with limited liability duly incorporated in the RSA, herein represented by N Qangule,
she being duly authorised thereto under and by virtue of a resolution of the board of
directors of Evander, a copy of which is annexed hereto as Annexure E;
	 
	1.2.18	 	“Financial Statements” in respect of any person or entity - collectively, the annual
financial statements (audited in the case of Harmony) and the semi-annual and quarterly
accounts and reports of that person or entity, including the notes (if any) thereto;
	 
	1.2.19	 	“Financial Year” – the financial year of Harmony and the Company, being a period of twelve
months ending on 30 June in each year, or such other period coinciding with the annual
financial reporting period of Harmony and the Company as the Subscriber may approve in
writing;

4

 

	1.2.20	 	“Financing Agreements” – collectively –

	1.2.20.1	 	this Agreement;
	 
	1.2.20.2	 	the Preference Share Terms;
	 
	1.2.20.3	 	the Security Documents;
	 
	1.2.20.4	 	any other agreement or document that may be designated as being a “Financing Agreement” by
the Parties in writing from time to time,

	 	 	and “Financing Agreement” shall mean any one of them individually, as the context
may indicate;
	 
	1.2.21	 	“FRB” – FirstRand Bank Limited (registration number 1929/001225/06), a public company with
limited liability duly incorporated in the RSA and registered as a bank in accordance with the
laws of the RSA;
	 
	1.2.22	 	“Gold Fields” – Gold Fields Limited (registration number 1968/004880/06), a public company
with limited liability duly incorporated in the RSA;
	 
	1.2.23	 	“Gold Fields Shares” – so many ordinary shares with a par value of ZAR0,50 each in the share
capital of Gold Fields held by AHJIC, the value of which (if calculated using the 5 Day VWAP
up to and including the date that falls four Business Days prior to the Subscription Date) is
not less than 1.5 times the Subscription Price, as consolidated or subdivided from time to
time and including any additional shares in the share capital of Gold Fields acquired by AHJIC
as a result of the holding of such shares;
	 
	1.2.24	 	“Group” - collectively, Harmony and its subsidiaries;
	 
	1.2.25	 	“Guarantees” – the guarantees given in favour of the Subscriber in terms of 11;
	 
	1.2.26	 	“Harmony” – Harmony Gold Mining Company Limited (registration number 1950/038232/06), a
public company with limited liability duly

5

 

	 	 	incorporated in the RSA, herein represented by N Qangule, she being duly authorised
thereto under and by virtue of a resolution of the board of directors of Harmony, a
copy of which is annexed hereto as Annexure F;
	 
	1.2.27	 	“IFRS” – International Financial Reporting Standards as applicable from time to time;
	 
	1.2.28	 	“Indebtedness” – any obligation for the payment or repayment of money, whether as principal,
surety, guarantor or otherwise, and whether present or future, actual or contingent, including
any Indebtedness arising from or pursuant to any redeemable preference share;
	 
	1.2.29	 	“Material Adverse Event” – any event, matter or circumstance, or combination of events,
matters or circumstances, which has or is likely to have a material adverse effect on -

	1.2.29.1	 	any of the financial condition (including Assets, revenues, liabilities, prospects and
results of operations) or affairs of the Company and/or any Relevant Person;
	 
	1.2.29.2	 	the ability of the Company and/or any Relevant Person to perform in a timely manner all or
any of its obligations (including its payment obligations) under and in terms of any Financing
Agreements to which it is a party; or
	 
	1.2.29.3	 	the validity or effectiveness or priority of any security granted in terms of any of the
Security Documents;

	 
	1.2.30	 	“Outstanding Balance” – the “Outstanding Balance” as defined in the Bridge Loan Agreement;
	 
	1.2.31	 	“Parties” – the Company, Harmony, the other Relevant Persons, the Subscriber and any other
person that is or becomes a party to this Agreement from time to time, and “Party” shall mean
any of them individually, as the context may indicate;

6

 

	1.2.32	 	“Permitted Encumbrance” – any Encumbrance -

	1.2.32.1	 	created by the RMB Equity Performance Swap or any of the Security Documents;
	 
	1.2.32.2	 	created with the prior written consent of the Subscriber;
	 
	1.2.32.3	 	already existing as at the Signature Date and separately disclosed by Harmony to the
Subscriber, in writing, prior to the Signature Date;
	 
	1.2.32.4	 	created in the ordinary course of trading activities as a term of supply of goods or
services in terms of the relevant supplier’s standard or usual terms and conditions of sale or
supply over such goods and services;
	 
	1.2.32.5	 	created as a result of any cash management arrangement entered into in the normal course
of banking arrangements for the purpose of netting debit and credit balances, provided that
the effect of any security or other documentation necessary to facilitate such cash management
arrangement shall be limited to such particular cash management arrangement only and shall not
have any wider ambit of application;
	 
	1.2.32.6	 	arising by the operation of Applicable Law;
	 
	1.2.32.7	 	arising as a result of any subordination by the Company and/or any Relevant Person of
inter-Group loans not exceeding ZAR250 000;
	 
	1.2.32.8	 	created in favour of the Company or any Relevant Person;
	 
	1.2.32.9	 	arising as a result of deposits made to secure the performance of tenders, bids or trade
or government contracts, to secure leases, statutory or regulatory obligations, surety or
appeal bonds, performance or other obligations of a like nature incurred in the ordinary
course of business, but not in aggregate exceeding ZAR10 000 000;

7

 

	1.2.32.10	 	created as a result of zoning restrictions, licences, reservations, title defects, rights
of others for rights of way, utilities, sewers, electrical lines, telephone lines, telegraph
wires, restrictions, encroachments and other similar charges, encumbrances or title defects
incurred in the ordinary course of business;
	 
	1.2.32.11	 	created as a result of security given for costs in respect of any legal proceeding
concerning the Group;
	 
	1.2.32.12	 	created as a result of any extension, renewal or replacement, in whole or in part of any
Encumbrance permitted in terms of this 1.2.32, provided the value of such Encumbrance does not
exceed the existing value of the Encumbrance permitted pursuant to this 1.2.32 and is not
granted on terms which are more onerous to the Company or the Relevant Person (as the case may
be);
	 
	1.2.32.13	 	arising from any right of refusal, right of first offer, option or other agreement to
sell or otherwise dispose of an Asset, provided such right of first refusal, right of first
offer, option or other agreement to sell or otherwise dispose is for a consideration greater
than or equal to the market value of such Asset;
	 
	1.2.32.14	 	created over any Asset or property acquired after the Signature Date to secure
Indebtedness incurred for the purpose of financing the purchase of such Asset or property,
provided that the recourse of the Subscriber or financier is limited to the Indebtedness
incurred to acquire such Asset or property as aforesaid;
	 
	1.2.32.15	 	created from an escrow agreement entered into or in connection with the disposition of
Assets, provided that the value of such Encumbrance shall not exceed the value of the Asset so
disposed of; or
	 
	1.2.32.16	 	arising as a result of any landlord hypothec;

8

 

	1.2.33	 	“Permitted Indebtedness” - any Indebtedness -

	1.2.33.1	 	arising under the RMB Equity Performance Swap;
	 
	1.2.33.2	 	arising under the 4,875% convertible bonds due 21 June 2009 of Harmony and still in issue
on the Signature Date and any extension of the maturity of such bonds;
	 
	1.2.33.3	 	arising under any of the Financing Agreements;
	 
	1.2.33.4	 	arising or incurred with the prior written consent of the Subscriber;
	 
	1.2.33.5	 	arising under relationships with trade creditors incurred in the ordinary course of
business which are not overdue on customary trade terms;
	 
	1.2.33.6	 	existing as at the Signature Date and separately disclosed by Harmony to the Subscriber,
in writing, prior to the Signature Date;
	 
	1.2.33.7	 	in relation to any Relevant Person which is not a Relevant Person on the Signature Date,
existing as at the date on which such person becomes a Relevant Person;
	 
	1.2.33.8	 	arising under the vehicle and equipment financing arrangements for the Hidden Valley
project situated in Papau New Guinea, to be embarked upon by the Group, but then only in an
amount not exceeding US$45 000 000;
	 
	1.2.33.9	 	arising under any non-recourse (save as permitted in 1.2.33.10) financing arrangements for
the Hidden Valley project situated in Papau New Guinea, to be embarked upon by the Group, but
only if the person or entity making that Indebtedness available has no recourse to any member
of the Group other than such Australian subsidiary;
	 
	1.2.33.10	 	arising from any guarantee provided by Harmony or any other Relevant Person in respect of
any financing referred to in 1.2.33.8

9

 

	 	 	and/or 1.2.33.9, but then only if such financing qualifies as a Permitted
Indebtedness in terms of 1.2.33.8 and/or 1.2.33.9 and only in an amount not
exceeding US$25 000 000 in the aggregate;
	 
	1.2.33.11	 	arising from agreements providing for guarantees, indemnities or obligations in respect
of earn-outs or other purchase price adjustments in connection with the acquisition or
disposition of Assets but then only in an aggregate amount not exceeding ZAR50 000 000;
	 
	1.2.33.12	 	arising in respect of a Permitted Encumbrance;
	 
	1.2.33.13	 	of any Relevant Person to the Company or of the Company to any Relevant Person or of any
Relevant Person to another Relevant Person (as the case may be);
	 
	1.2.33.14	 	in order to redeem, in accordance with the provisions of the Financing Agreements, all of
the Preference Shares in issue and to pay in full, in accordance with the provisions of the
Financing Agreements, all amounts outstanding under the Financing Agreements, provided that
such Indebtedness does not subsist for a period of longer than two days prior to such
redemption and payment;
	 
	1.2.33.15	 	arising as a result of any Indebtedness incurred in exchange for, or the net proceeds of
which will be used to refund, replace or refinance any other Permitted Indebtedness, provided
that such Indebtedness is not in an amount greater than the existing Permitted Indebtedness
and is not on terms and conditions more onerous to the Company or the Relevant Person (as the
case may be);
	 
	1.2.33.16	 	incurred under currency or interest rate hedging agreements, provided that the notional
underlying amount of such hedging agreements does not, in aggregate, exceed ZAR270 000 000;
	 
	1.2.33.17	 	incurred under electronic settlement facilities (clearing effects);

10

 

	1.2.33.18	 	incurred in the ordinary course of business and discharged within thirty days of it first
arising; or
	 
	1.2.33.19	 	which does not fall within the preceding provisions of this 1.2.33, but does not in
aggregate exceed ZAR50 000 000;

	1.2.34	 	“Preference Share” – a cumulative, floating rate, redeemable preference share with a par
value of ZAR0,01 in the share capital of the Company, having the rights, privileges and
conditions described in Annexure G hereto;
	 
	1.2.35	 	“Preference Share Terms” – the rights, privileges and conditions attaching to the Preference
Shares described in Annexure G hereto;
	 
	1.2.36	 	“Prime Rate” – the publicly quoted prime rate of interest (percent, per annum, compounded
monthly in arrears and calculated on a 365 day year irrespective of whether or not the year is
a leap year) as published by First National Bank, a division of FRB (or its successor) as
being its prime rate from time to time, as certified by any manager of such bank whose
authority, appointment and designation need not be proved;
	 
	1.2.37	 	“Put Option” – the put option granted by AHJIC to the Subscriber in terms of 10.1;
	 
	1.2.38	 	“Rand”, “R” or “ZAR” – Rand, the lawful currency of the RSA;
	 
	1.2.39	 	“Redemption Amount”- the “Redemption Amount” as defined in the Preference Share Terms;
	 
	1.2.40	 	“Relevant Persons” – individually and/or collectively as the context may require, each of –

	1.2.40.1	 	Harmony;
	 
	1.2.40.2	 	Evander;

11

 

	1.2.40.3	 	ARMGold, but only until such time as all of the shares in the issued share capital of
ARMGold or all of the Assets of ARMGold are disposed of;
	 
	1.2.40.4	 	ARMGold/Harmony JV;
	 
	1.2.40.5	 	AHJIC;
	 
	1.2.40.6	 	Avgold;
	 
	1.2.40.7	 	any other present or future subsidiary of Harmony that has an EBITDA representing 10% or
more of Harmony’s consolidated EBITDA or that has gross assets reflected in the balance sheet,
net assets reflected in the balance sheet or turnover (excluding intra-Group items)
representing 5% or more of Harmony’s consolidated gross assets reflected in the balance sheet,
net assets reflected in the balance sheet or turnover (as the case may be), but excluding as
at the Signature Date subsidiaries of Harmony incorporated in Australia even though such
entities may qualify as a Relevant Person on the Signature Date without prejudice to the
Subscriber’s rights to later, on reasonable written notice to Harmony, include such persons as
Relevant Persons and to require any or all of them, subject to such Relevant Persons having
obtained or acquired all necessary regulatory approvals (which they shall be obliged to use
their reasonable commercial endeavours to obtain as soon as possible) to bind themselves as
guarantors in terms of a Guarantee, mutatis mutandis, on the same terms and conditions as the
other Relevant Persons;

	1.2.41	 	“RMB Equity Performance Swap” - each and every transaction concluded or to be concluded
between the Subscriber and AHJIC pursuant to the ISDA Master Agreement, the ISDA Schedule and
the REPS Master Agreement concluded by them on or about the Signature Date;
	 
	1.2.42	 	“RSA” - the Republic of South Africa;

12

 

	1.2.43	 	“Security Documents” – any and all agreements, arrangements and/or documents of whatsoever
nature in terms of which any obligation or liability of the Company in respect of this
Agreement and/or the Preference Shares is directly or indirectly secured, including –

	1.2.43.1	 	the Cession in Securitatem Debiti Agreement; and
	 
	1.2.43.2	 	any other agreement or document that may be designated as being a “Security Document” by
the Parties in writing from time to time,

	 	 	and “Security Document” shall mean any one of them individually, as the context may
indicate;
	 
	1.2.44	 	“Share Cover” – at any point in time, the ratio (expressed as a decimal fraction) between
(i) the aggregate value of the Gold Fields Shares calculated using the 5 Day VWAP as at such
point in time to (ii) the aggregate Redemption Amount that would be payable if all the
Preference Shares were to be redeemed at such point in time;
	 
	1.2.45	 	“Signature Date” – the date that this Agreement is signed by the Party signing last in time;
	 
	1.2.46	 	“STC” – secondary tax on companies levied in terms of the Income Tax Act, 58 of 1962;
	 
	1.2.47	 	“Subscriber” – FRB, acting through its Rand Merchant Bank division, whose signatories to
this Agreement are duly authorised thereto, or its nominee;
	 
	1.2.48	 	“Subscription Date” – the second Business Day after the date on which all the Suspensive
Conditions have been fulfilled or waived as notified in terms of 3.6;
	 
	1.2.49	 	“Subscription Price”- an aggregate amount of ZAR550 000 000, being an amount of
approximately ZAR10 in respect of each of the Subscription Shares;

13

 

	1.2.50	 	“Subscription Shares” – the 55 000 000 Preference Shares to be subscribed for by the
Subscriber in terms of this Agreement;
	 
	1.2.51	 	“Suspensive Conditions” – the suspensive conditions referred to in 3;
	 
	1.2.52	 	“Tax” – any tax, levy, impost, duty, fee or other charge or withholding of whatsoever
nature, including any penalty and/or interest payable in connection with any failure to pay or
any delay in paying any of the same;
	 
	1.2.53	 	“Trigger Event” – if measured at any point in time -

	1.2.53.1	 	before 1 March 2008, the Share Cover being less than 1.25 times; or
	 
	1.2.53.2	 	on or after 1 March 2008, the Share Cover being less than 2.0 times;

	1.2.54	 	“US$” - United States Dollars, the lawful currency of the United States of America;
	 
	1.2.55	 	“5 Day VWAP” – the volume weighted average price per share at which ordinary par value
shares in Gold Fields traded on the JSE Limited over the five trading day period during which
they actually traded preceding any date on which same is to be measured, provided that for the
purposes of determining such volume weighted average price, transactions, regardless of where
they are settled, which were not concluded on the open market, but were rather concluded
pursuant to a direct understanding or arrangement between the seller and the purchaser, shall
not be taken into account;

	1.3	 	any reference to any statute, regulation or other legislation shall be a reference to that
statute, regulation or other legislation as at the Signature Date, and as amended or
substituted from time to time;
	 
	1.4	 	any reference to any agreement, deed, bond or other document shall include a reference to all
annexures, appendices, schedules and other attachments thereto and shall be a reference to
that agreement, deed, bond or other

14

 

	 	 	document (including such annexures, appendices, schedules and other attachments thereto)
as amended, novated and/or replaced from time to time;
	 
	1.5	 	any reference to “subsidiary”, “subsidiary company”, “subsidiaries” or “holding company”
shall be given the meaning which would be ascribed thereto in accordance with the provisions
of the Act;
	 
	1.6	 	if any provision in a definition is a substantive provision conferring a right or imposing
an obligation on any Party then, notwithstanding that it is only in a definition, effect shall
be given to that provision as if it were a substantive provision in the body of this
Agreement;
	 
	1.7	 	where any term is defined within a particular clause other than this 1, that term shall bear
the meaning ascribed to it in that clause wherever it is used in this Agreement;
	 
	1.8	 	where any period or number of days is to be calculated, such period or number shall be
calculated as including the first day and excluding the last day. If the last day of such
period or number so calculated falls on a day which is not a Business Day, the last day shall
be deemed to be the immediately preceding day which is a Business Day;
	 
	1.9	 	where any day for the performance of any obligation and/or the payment of any amount in terms
of this Agreement falls on a day other than a Business Day, such obligation shall be performed
and/or such amount shall be paid on the immediately preceding day which is a Business Day;
	 
	1.10	 	any reference to days (other than a reference to Business Days), months or years shall be a
reference to calendar days, months or years, as the case may be;
	 
	1.11	 	any term which refers to a South African legal concept or process (for example, without
limiting the aforegoing, winding-up or curatorship) shall be deemed to include a reference to
the equivalent or analogous concept or process in any other jurisdiction in which this
Agreement may apply or to the laws of which a Party may be or become subject;

15

 

	1.12	 	the use of the word “including”, “include” and “includes” followed by a specific example/s
shall not be construed as limiting the meaning of the general wording preceding it and the
eiusdem generis rule shall not be applied in the interpretation of such general wording or
such specific example/s; and
	 
	1.13	 	the word “disposed” shall mean any form of alienation of any property or Assets and any
agreement for such form of alienation of property or Assets and shall include a sale,
donation, pledge, cession, assignment or licence, and the words “dispose”, “disposition” and
“disposal” shall be construed in a like manner, provided that the payment of money shall not
constitute a disposal.

	 	 	The terms of this Agreement having been negotiated, the contra proferentem rule shall not be
applied in the interpretation of this Agreement.
	 
	2	 	INTRODUCTION

	2.1	 	The Company wishes to raise capital in order to finance the partial repayment of the
Outstanding Balance payable by Harmony in terms of the Bridge Loan Agreement.
	 
	2.2	 	The Subscriber is willing to provide capital to the Company by subscribing for the
Subscription Shares, and the Company is willing to allot and issue the Subscription Shares to
the Subscriber, all subject to the terms and conditions set out in this Agreement.
	 
	2.3	 	AHJIC is willing to grant a put option in respect of the Preference Shares on the basis set
out in this Agreement.
	 
	2.4	 	The Relevant Persons are willing to provide certain guarantees on the basis set out in this
Agreement.

	3	 	SUSPENSIVE CONDITIONS

	3.1	 	This whole Agreement (other than 1, this 3 and 15 to 23 (both clauses included), by which the
Parties shall be bound as from the Signature Date) is subject to the fulfilment, on or before
5 April 2007 (or such later date as the

16

 

	 	 	Parties may agree in writing), of the suspensive conditions set out in Annexure H
hereto.
	 
	3.2	 	The Company and each Relevant Person shall use its reasonable commercial endeavours to
procure the fulfilment of the Suspensive Conditions.
	 
	3.3	 	The Suspensive Conditions are expressed to be solely for the benefit of the Subscriber and,
accordingly, fulfilment thereof may only be waived (to the extent legally possible) by the
Subscriber by written notice to the Company on or before the date set for the fulfilment of
the Suspensive Conditions, provided that such waiver shall not affect the rights of the
Subscriber in respect of any breach by the Company and/or any Relevant Person of 3.2 or any
other provision of this Agreement by which the Parties are bound.
	 
	3.4	 	In waiving any of the Suspensive Conditions pursuant to 3.3, the Subscriber shall be
entitled –

	3.4.1	 	to do so unconditionally; or
	 
	3.4.2	 	to impose, by way of written agreement between itself and Harmony, any additional or
alternative conditions, which shall be deemed to be additional suspensive conditions for
purposes of this 3.

	3.5	 	If any Suspensive Condition is not fulfilled for any reason whatever and fulfilment thereof
is not waived in accordance and 3.3 within the time period provided therefor, then -

	3.5.1	 	this whole Agreement (other than 1, this 3 and 15 to 23 (both clauses included), by which
the Parties shall remain bound) shall be of no force or effect;
	 
	3.5.2	 	the Parties shall be restored as near as possible to the positions in which they would have
been had this Agreement not been entered into; and
	 
	3.5.3	 	no Party shall have any claim against any other in terms of this Agreement except for such
claims (if any) as may arise from a breach of

17

 

	 	 	this 3 or any other provision of this Agreement by which the Parties remain bound.

	3.6	 	The Subscriber shall notify the Company whether –

	3.6.1	 	the Suspensive Conditions have all been fulfilled timely to the satisfaction of the
Subscriber, which notice shall be given as soon as possible after such satisfaction; or
	 
	3.6.2	 	the Subscriber has waived fulfilment of any of the Suspensive Conditions, which notice shall
be given as soon as possible after such waiver.

	3.7	 	The Suspensive Conditions shall be deemed not to have been fulfilled or waived in the absence
of a notice from the Subscriber in terms of 3.6.

	4	 	SUBSCRIPTION, ALLOTMENT AND ISSUE OF PREFERENCE SHARES

	4.1	 	On the Subscription Date, the Subscriber shall -

	4.1.1	 	subscribe for the Subscription Shares at the Subscription Price; and
	 
	4.1.2	 	pay the Subscription Price by depositing an amount equal to the Subscription Price into the
following bank account -

	 	 	 	 
	 	Account name:
	 	RMB – DMM Account
	 	Account number:
	 	50619016740
	 	Branch:
	 	Corporate Account Services - Jhb
	 	Clearing Code:
	 	25-50-05
	 	Reference:
	 	SPJ

	 	 	It is recorded that such amount shall partially discharge the obligation of Harmony
to pay the Outstanding Balance to the Subscriber under the Bridge Loan Agreement
and, with effect from the date of such payment, Harmony shall be indebted to the
Company in respect of such amount.

	4.2	 	On the Subscription Date, the Company shall -

	4.2.1	 	allot the Subscription Shares to the Subscriber;

18

 

	4.2.2	 	against payment by the Subscriber of the Subscription Price in terms of 4.1.2, issue the
Subscription Shares to the Subscriber and record the Subscriber as the holder and owner
thereof in the Company’s register of members; and
	 
	4.2.3	 	issue and deliver to the Subscriber share certificates in respect of the Subscription Shares
in accordance with the provisions of the Act.

	4.3	 	The Preference Shares shall have (and the Company shall procure that the Preference Shares
shall have) the rights, privileges and conditions set out in Annexure G hereto.

	5	 	PURPOSE
	 
	 	 	The Company shall apply the Subscription Price only as contemplated in paragraph 4.1.2.
	 
	6	 	WARRANTIES, REPRESENTATIONS AND UNDERTAKINGS

	6.1	 	The Company and each of the Relevant Persons gives the Subscriber the warranties,
representations and undertakings (collectively “Warranties” and each a “Warranty”) in 6.2 on
the basis that -

	6.1.1	 	notwithstanding that the Subscriber is or should be aware that any Warranty is or may be
incorrect, this Agreement is entered into by the Subscriber relying on the Warranties, each of
which is deemed to be both a material representation inducing the Subscriber to enter into
this Agreement and an essential contractual undertaking by the Company and Harmony to ensure
that the Warranty is true and correct;
	 
	6.1.2	 	each Warranty shall be deemed to be material;
	 
	6.1.3	 	insofar as any Warranty is promissory or relates to a future event, such Warranty shall be
deemed conclusively to have been given as at the due date for fulfilment of the promise or for
the happening of the event, as the case may be and, to the extent that any Warranty is
expressed in an inappropriate tense, such Warranty shall be construed and read in the
appropriate tense;

19

 

	6.1.4	 	each Warranty shall be a separate and independent warranty and shall not be limited by any
reference to, or inference from, the terms of any other Warranty or by any other provision in
this Agreement; and
	 
	6.1.5	 	save as expressly otherwise provided for in this Agreement, each Warranty shall be given as
at the Signature Date, the Subscription Date and on each day for so long as any of the
Preference Shares remains in issue.

	6.2	 	The Company and each Relevant Person warrants, represents and undertakes in favour of the
Subscriber that, save as otherwise provided for, or contemplated in, the Financing
Agreements –

	6.2.1	 	it has the legal capacity and the power to own its Assets and carry on its business or
activities as it is presently being conducted;
	 
	6.2.2	 	it has -

	6.2.2.1	 	the legal capacity and power to enter into and perform; and
	 
	6.2.2.2	 	taken all necessary actions (whether corporate, internal or otherwise) to authorise its
entry into and, as from the Subscription Date, its performance of,

	 	 	the Financing Agreements to which it is a party;
	 
	6.2.3	 	the obligations expressed to be assumed by it under the Financing Agreements to which it is
a party are legal and valid and, as from the Subscription Date, are binding on, and
enforceable against it;
	 
	6.2.4	 	the entry into of the Financing Agreements to which it is a party and the performance of its
obligations thereunder does not, and will not, -

	6.2.4.1	 	contravene any Applicable Law; and/or

20

 

	6.2.4.2	 	contravene any provision of its memorandum or articles of association; and/or
	 
	6.2.4.3	 	contravene, violate, cause a default and/or breach of the terms of, and/or otherwise
conflict with any contract, agreement, indenture, mortgage or other instrument of any kind to
which it is a party or by which it may be bound or which is binding upon its Assets;
	 
	6.2.4.4	 	cause any borrowing, negative pledge or other limitation on it or any Relevant Person or
the powers of the directors or other officers of it or of any Relevant Person to be exceeded
or allow a person to accelerate or cancel an obligation with respect to any Indebtedness of it
or any Relevant Person;

	6.2.5	 	as at the Signature Date, all material authorisations, consents, approvals, resolutions,
licences, exemptions, filings and registrations required for the conduct by it and each of the
Relevant Persons of its business have been obtained and are of full force and effect;
	 
	6.2.6	 	the entering into by it and each Relevant Person of the Financing Agreements to which it is
a party do not and shall not give rise to any authorisation, consent, approval, resolution,
licence, exemption, filing or registration referred to in 6.2.5 being suspended, cancelled,
revoked or not being renewed or only being renewed on terms less favourable to it or any
Relevant Person;
	 
	6.2.7	 	save for any Indebtedness preferred solely by virtue of the operation of law, its payment
obligations under the Financing Agreements (other than only for the Company’s obligations
under the Preference Share Terms) rank at least pari passu in right and priority of payment
with all unsecured and unsubordinated Indebtedness that it may have;
	 
	6.2.8	 	as at the Signature Date, no “Redemption Event” (as defined in the Preference Share Terms)
has occurred or is continuing and no event that is a breach of or default under any of the
Financing Agreements has occurred and is continuing;

21

 

	6.2.9	 	as at the Signature Date, insofar as it is aware or ought reasonably to have been aware
after having made all reasonable and diligent enquiries, nothing has occurred which is, or is
reasonably likely to be, a Material Adverse Event;
	 
	6.2.10	 	as at the Signature Date, no litigation, arbitration, administrative or other proceedings
which are, or are reasonably likely (either by itself or together with any other proceedings)
to be, a Material Adverse Event, are current or pending or (to the best of its knowledge,
information or belief) threatened against it, any Relevant Person or any of their respective
Assets;
	 
	6.2.11	 	it and each Relevant Person -

	6.2.11.1	 	has no Indebtedness other than Permitted Indebtedness;
	 
	6.2.11.2	 	is not a party to, nor is it or any of its Assets bound or affected by, any consent,
agreement or instrument under which it is, or in certain circumstances (including the entry
into of the Financing Agreements and/or performance by it and each Relevant Person of its
obligations thereunder) may be, required to, create, assume or permit to arise any
Indebtedness other than Permitted Indebtedness; or
	 
	6.2.11.3	 	is not liable to any third party as guarantor, surety or any similar capacity other than
as contemplated by the Financing Agreements and other than as separately disclosed by Harmony
to the Subscriber, in writing, prior to the Signature Date;

	6.2.12	 	none of the Assets of it or of any Relevant Person or shares in the Company or any Relevant
Person are encumbered other than by way of a Permitted Encumbrance and none of it or any of
the Relevant Persons is a party to, nor is it or any of its Assets bound or affected by, any
consent, agreement or instrument under which it or any Relevant Person is, or in certain
circumstances (including the entry into of the Financings Agreements and/or performance of its
obligations thereunder) may be, required to create, assume or permit to arise any Encumbrance
other than a Permitted Encumbrance;

22

 

	6.2.13	 	all financial and other information furnished by it and by any Relevant Person to the
Subscriber (whether in terms of, or pursuant to any of the Financing Agreements or otherwise)
does not contain any factual statements which are incorrect or omit to state any fact, the
omission of which makes the statements therein, in the light of the circumstances under which
they were made, misleading in any material respect;
	 
	6.2.14	 	its most recent Financial Statements which were provided to the Subscriber were prepared in
accordance with IFRS consistently applied and give a true and fair view of its results of
operations for the period to which they relate and its state of affairs at the end of such
period and, in particular, disclose or reserve against and provide for all liabilities (actual
or contingent);
	 
	6.2.15	 	as at the Signature Date, since the provision to the Subscriber of the most recent Financial
Statements referred to in 6.2.14, there has been no event which has resulted in, or is
reasonably likely to require, the restatement of such Financial Statements;
	 
	6.2.16	 	it and each Relevant Person shall not, in any jurisdiction, claim for itself or its Assets
immunity from suit, execution, attachment or other legal process whatsoever or wheresoever;
	 
	6.2.17	 	the execution by it and each of the Relevant Persons of the Financing Agreements
constitutes, and its exercise of its rights and performance of its obligations thereunder will
constitute, private and commercial acts done and performed for private and commercial
purposes;
	 
	6.2.18	 	it is not (nor would it with the giving of notice or the lapse of time or the satisfaction
or non-satisfaction of any other condition or any combination thereof be) in breach of, or in
default under, the Financing Agreements to which it is a party;
	 
	6.2.19	 	it is solvent and in a position to pay its debts and meet its other obligations as and when
they fall due in the normal course of business

23

 

	 	 	and has not committed any act which, if it were a natural person, would be an act
of insolvency as defined in the Insolvency Act, 24 of 1936;
	 
	6.2.20	 	as at the Signature Date, no “Insolvency Event” (as defined in the Preference Share Terms)
has occurred in relation to it;
	 
	6.2.21	 	it is acting as principal and is not entering into the Financing Agreements to which it is a
party as agent for any other party;
	 
	6.2.22	 	there have been no applications, steps, proceedings or orders for the deregistration,
winding-up, liquidation, judicial management or administration of it, whether provisional or
final;
	 
	6.2.23	 	as at the Signature Date, it and each Relevant Person has not breached any Applicable Law
binding on it, where such breach is, or is reasonably likely to be, a Material Adverse Event;
	 
	6.2.24	 	it and each of the Relevant Persons has -

	6.2.24.1	 	delivered or caused to be delivered all returns for Taxes which are now due to the
appropriate governmental or regulatory authority (including the South African Revenue
Services);
	 
	6.2.24.2	 	paid and discharged all Taxes payable by it when due;
	 
	6.2.24.3	 	made appropriate provision in accordance with IFRS for amounts likely to be payable in
respect of Tax; and
	 
	6.2.24.4	 	withheld and collected all Taxes required to be withheld and collected by it and remitted
such Taxes to the appropriate governmental or regulatory authority (including the South
African Revenue Services),

	 	 	and no assessment or appeal is, to its knowledge (having made reasonable and
diligent enquiry), being asserted or processed with respect to such returns, Taxes
or obligation;

24

 

	6.2.25	 	has not and shall not conduct any business or activity other than as reflected in its
memorandum of association;
	 
	6.2.26	 	insofar as the Company is concerned and save as otherwise provided for in the Financing
Agreements, it has not and shall not amend its memorandum or articles of association in any
manner that would or could prejudice the rights or interests of the Subscriber or the holder
of any Preference Share, or propose or adopt any resolution or otherwise purport to do so;
	 
	6.2.27	 	it has fully disclosed in writing (it being recorded that Harmony has disclosed to the
Subscriber Form 20F for the Financial Year ended 30 June 2006, lodged by or on behalf of
Harmony with the Securities Exchange Commission of the United States of America during October
2006 and Harmony’s consolidated Financial Statements as at and for the twelve month period
ended 30 June 2006 and for the six month period ended 31 December 2006 or otherwise) to the
Subscriber all facts which it knows, or should reasonably know, is, or which could reasonably
be expected to be, material to the Subscriber in the context of this Agreement and the
Financing Agreements;
	 
	6.2.28	 	the Company has sufficient distributable reserves or profits available for distribution in
order for it to pay all dividends and make all redemption payments under the Preference Share
Terms on the basis envisaged in the Preference Share Terms;
	 
	6.2.29	 	if, by 1 March 2008, all the shares in the issued share capital of ARMGold or all of the
Assets of ARMGold have not been disposed of, it shall procure that ARMGold binds itself, in
writing and in form and substance acceptable to the Subscriber, to the provisions of this
Agreement;
	 
	6.2.30	 	it shall procure that AHJIC never becomes a “material subsidiary” for purposes of the 4,875%
convertible bonds due 21 June 2009 of Harmony;

25

 

	6.2.31	 	it shall procure that, for so long as the Company is a public company, the Company shall at
all times have at least seven members holding ordinary shares in the issued share capital of
the Company; and
	 
	6.2.32	 	it shall procure that the Company is converted from a public company to a private company by
no later than the date that falls three months after the Signature Date.

	7	 	POSITIVE AND NEGATIVE UNDERTAKINGS

	7.1	 	The Company and each Relevant Person undertakes to and in favour of the Subscriber to meet
and/or, as applicable, comply with the positive and negative undertakings in 7.2 and 7.3 on
the basis that each such undertaking shall be deemed to be given on the Signature Date, the
Subscription Date and on every day thereafter for so long as any of the Preference Shares
remain in issue.
	 
	7.2	 	The Company and each Relevant Person undertakes to and in favour of the Subscriber that it
shall –

	7.2.1	 	do all such things as are necessary to maintain its corporate existence;
	 
	7.2.2	 	do all such things as are necessary to rectify any corporate irregularities relating to it
and its corporate records;
	 
	7.2.3	 	comply with all Applicable Law binding upon it or its Assets or required for the conduct of
its business, where failure to comply with such Applicable Laws would or may be a Material
Adverse Event;
	 
	7.2.4	 	obtain and maintain in full force and effect all authorisations, consents, approvals,
resolutions, licenses, exemptions and registrations required for the conduct by it of its
business in the place and in the manner in which such business is presently carried on and it
shall promptly make and renew from time to time all such filings and registrations, as may be
required or desirable under any Applicable Law –

26

 

	7.2.4.1	 	to enable it to perform its obligations under the Financing Agreements to which it is a
party; and
	 
	7.2.4.2	 	for the validity, enforceability or admissibility in evidence of each of the Financing
Agreements to which it is a party;

	7.2.5	 	insofar as the Company is concerned, use the Subscription Price paid to it under this
Agreement only for the purposes set out in this Agreement;
	 
	7.2.6	 	ensure that its payment obligations in respect of the Financing Agreements to which it is a
party (other than only the Company’s obligations under the Preference Share Terms) rank, and
shall at all times rank, at least pari passu in right, priority or payment and security with
all its present and future unsecured and unsubordinated Indebtedness (save for Indebtedness
preferred solely by operation of law);
	 
	7.2.7	 	promptly pay all Taxes imposed upon it or any of its Assets, income or profits or any
transactions undertaken, or entered into, by it, except in relation to any bona fide Tax
dispute for which proper provision has been made in its Financial Statements;
	 
	7.2.8	 	at all times maintain in full force and effect (or where appropriate, promptly renew in a
timely manner) all Encumbrances created pursuant to the Security Documents and from time to
time execute, acknowledge and deliver or cause to be executed, acknowledged and delivered such
further documents and/or instruments as may be reasonably requested by the Subscriber for
perfecting or maintaining in full force and effect such Encumbrances;
	 
	7.2.9	 	ensure that all relevant notarisations, registrations and filings (if any) are effected, and
take all other actions as may be necessary or advisable, to ensure that a valid and first
priority Encumbrance over any Assets Encumbered under any of the Security Documents is granted
or maintained;
	 
	7.2.10	 	keep or cause to be kept proper books of account relating to its business in accordance with
IFRS consistently applied;

27

 

	7.2.11	 	ensure that all Financial Statements delivered by it to the Subscriber –

	7.2.11.1	 	are prepared in accordance with IFRS consistently applied and in compliance with all
Applicable Law; and
	 
	7.2.11.2	 	give a true and fair view of its financial condition and the results of its operations for
the period for which and on the date at which such Financial Statements are prepared and made
up; and

	7.2.12	 	promptly inform the Subscriber, in writing, of the occurrence of any event which is, or may
or is likely to be, -

	7.2.12.1	 	a “Redemption Event” (as defined in the Preference Share Terms); and/or
	 
	7.2.12.2	 	a breach of or default under any of the Financing Agreements,

	 	 	and shall, from time to time on request therefor by the Subscriber, supply the
Subscriber with a certificate signed by two of its directors certifying that no
such event has occurred or is continuing or, if such is not the case, specifying
the event which has occurred and the action taken or proposed to be taken to remedy
same.

	7.3	 	The Company and each Relevant Person undertakes to and in favour of the Subscriber that it
shall not, without the prior written consent of the Subscriber -

	7.3.1	 	amalgamate, merge, consolidate or otherwise enter into any other form of business
combination with any other person, or be the subject of any reconstruction, arrangement or
similar transaction, provided that nothing in this 7.3 shall prohibit any relevant Person
from –

	7.3.1.1	 	issuing its own shares in order to effect an acquisition of another entity;

28

 

	7.3.1.2	 	amalgamating, merging, consolidating or otherwise entering into any other form of business
combination with any other entity where the creditworthiness of that Relevant Person is
substantially the same as (or better than) that prior to such activity (as determined by the
Subscriber in its reasonable discretion) and that Relevant Person remains bound by the
provisions of this Agreement;

	7.3.2	 	materially change the nature or scope of its principal business;
	 
	7.3.3	 	other than in the ordinary course of its business enter into or permit to subsist or agree
to give or enter into any Indebtedness, except for Permitted Indebtedness;
	 
	7.3.4	 	create or agree or attempt to create or permit to subsist in favour of any person other than
the Subscriber any Encumbrance over the whole or any part of its present or future Assets or
agree to do so, except that this restriction will not apply to Permitted Encumbrances;
	 
	7.3.5	 	collateralise any guarantee, suretyship, intercession or similar undertaking, except for
guarantees, suretyships, intercessions or similar undertakings given on its behalf in favour
of carriers, warehousemen or trade suppliers incurred in the ordinary course of its business;
	 
	7.3.6	 	save for in terms of any Permitted Indebtedness, give or enter into or permit to subsist or
agree to give or enter into any guarantee, suretyship, intercession or similar undertaking
other than as contemplated by the Financing Agreements and other than in replacement (on terms
and conditions no more onerous to it or the Relevant Person, as the case may be) of any such
guarantee, suretyship or intercession as separately disclosed by Harmony to the Subscriber, in
writing, prior to the Signature Date;
	 
	7.3.7	 	insofar as Harmony is concerned, redeem, purchase or otherwise acquire any of its shares or
otherwise reduce its share capital in any manner other than redemptions, purchases or other
acquisitions of its shares or other reductions of its share capital not exceeding
ZAR125 000 000 in any Financial Year;

29

 

	7.3.8	 	surrender or attempt or purport to surrender any of its Tax relief or accumulated assessed
Tax losses and/or benefits;
	 
	7.3.9	 	insofar as the Company is concerned and save as otherwise provided for in the Financing
Agreements, effect or propose to effect any amendment to its memorandum or articles of
association that would or could prejudice the rights or interests of the Subscriber or the
holder of any Preference Share;
	 
	7.3.10	 	whether by way of a single transaction or a number of related or unrelated transactions and
whether at the same time or over a period of time, dispose of or cease to exercise direct
control over all or any part of its present or future Assets or any interest therein or the
right to receive or to be paid the same or agree or attempt to do so, provided that the
restriction contained in this 7.3.10 shall not apply in relation to -

	7.3.10.1	 	the disposal of inventory on arm’s length terms in the ordinary and regular course of its
business;
	 
	7.3.10.2	 	disposals of ordinary shares with a par value of ZAR0,50 each in the share capital of Gold
Fields that are not Gold Fields Shares;
	 
	7.3.10.3	 	disposals of Assets made other than in the ordinary course of its business but on arm’s
length terms and only if the value of the Assets thereby disposed of (whether by a single
transaction or by a series of transactions) does not exceed in aggregate the sum of
ZAR250 000 000 in respect of all such disposals by all Relevant Persons in any Financial Year
and it is paid entirely in cash or Assets on disposal;
	 
	7.3.10.4	 	disposals or replacements of obsolete or redundant equipment no longer required for the
purposes of the business carried on by it; and
	 
	7.3.10.5	 	the creation of any Permitted Encumbrance,

30

 

	 	 	and shall not apply to AHJIC in respect of any Gold Fields Shares disposed of by it
(with the prior written approval of the Subscriber in circumstances where such
disposal of Gold Fields Shares is done by way of a transaction not concluded on the
open market but rather pursuant to a direct understanding or arrangement between
AHJIC and the purchaser concerned) specifically for purposes of using the proceeds
of such disposal to either effect payments to the Subscriber under the Financing
Agreements or to place such proceeds on deposit with FRB (and to pledge and cede in
securitatem debiti, or procure the pledge and cession in securitatem debiti, to the
holders of the Preference Shares of any amount so deposited by concluding a
document in the form of Annexure I hereto) and shall not apply to any disposal of
all the shares in the issued share capital of ARMGold or all of the Assets of
ARMGold prior to 1 March 2008; or
	 
	7.3.11	 	insofar as Harmony is concerned, make any Distribution to any of its shareholders with the
proceeds of any disposal of Assets (whether by a single transaction or by a series of
transactions) where the value of such Assets disposed of exceeds ZAR100 000 000 (even if such
disposal is allowed under 7.3.10).

	8	 	REPORTING UNDERTAKINGS

	8.1	 	The Company and each Relevant Person undertakes to and in favour of the Subscriber to meet
and/or as applicable, comply with the undertakings in 8.2 on mutatis mutandis the same basis
as set out in 7.1.
	 
	8.2	 	The Company and each Relevant Person undertakes to and in favour of the Subscriber that –

	8.2.1	 	it shall notify the Subscriber forthwith upon becoming aware of the occurrence of any event
which is, or is reasonably likely to be, a Material Adverse Event;
	 
	8.2.2	 	it shall deliver to the Subscriber the following reports and information –

31

 

	8.2.2.1	 	promptly as and when same have been approved by its board of directors (but in any event,
insofar as Harmony is concerned, within ninety days from the date of the end of each Financial
Year but no earlier than the date on which same is dispatched to its shareholders), copies of
its annual audited Financial Statements and copies of its consolidated annual audited
Financial Statements in respect and as at the end of such Financial Year;
	 
	8.2.2.2	 	promptly as and when same becomes available, but in any event within sixty days from the
end of such period, copies of its semi annual and quarterly unaudited accounts and reports and
copies of its consolidated semi annual and quarterly unaudited accounts and reports;
	 
	8.2.2.3	 	at the same time as its shareholders are delivered same, copies of all information
circulars, reports or other information sent by it to its shareholders;
	 
	8.2.2.4	 	if requested by the Subscriber, details of any litigation, arbitration, mediation or the
like either commenced, threatened or pending against it that is, or would or is likely to be,
a Material Adverse Event; and
	 
	8.2.2.5	 	such other information relating to its financial condition, prospects, operations and/or
Assets as the Subscriber may from time to time reasonably request.

	9	 	UNDERTAKINGS BY AHJIC
	 
	 	 	AHJIC undertakes to and in favour of the Subscriber that -

	9.1	 	if any Trigger Event occurs at any time prior to 1 March 2008, it shall forthwith (but in any
event within two Business Days of the date of a notice from the Subscriber notifying it that a
Trigger Event has occurred) either -

	9.1.1	 	place on deposit with FRB an amount that is necessary to ensure that the Share Cover (if
remeasured on the date of such deposit on the basis that

32

 

	 	 	the amount so placed on deposit is to be added to the aggregate value of the Gold
Fields Shares at such point in time) is at least 1.5 times; or
	 
	9.1.2	 	pledge and cede in securitatem debiti, or procure the pledge and cession in securitatem
debiti, to the holders of the Preference Shares of so many further ordinary shares with a par
value of ZAR0,50 each in the share capital of Gold Fields so as to ensure that the Share Cover
(if remeasured on the date of such pledge and cession in securitatem debiti) is at least 1.5
times;

	9.2	 	if any Trigger Event occurs at any time on or after 1 March 2008, it shall forthwith (but in
any event within two Business Days of the date of a notice from the Subscriber notifying it
that a Trigger Event has occurred), place on deposit with FRB an amount that is equal to 75%
of the aggregate Redemption Amount that would be payable if all of the Preference Shares were
to be redeemed on the date on which such Trigger Event occurred; and
	 
	9.3	 	together with making a deposit in terms of 9.1.1 or 9.2, pledge and cede in securitatem
debiti to the holders of the Preference Shares all of its right, title and interest in and to
the bank account into which the relevant amount has been deposited (including any credit
balance standing to the credit of such account from time to time) as additional security for
its obligations under the Guarantee, which pledge and cession in securitatem debiti shall be
in the form of Annexure I hereto.

	10	 	PUT OPTION

	10.1	 	AHJIC hereby grants to the Subscriber and to each holder of Preference Shares, and the
Subscriber hereby (on behalf of itself and for the benefit of all future holders of Preference
Shares) accepts, the irrevocable right and option to sell the Preference Shares held by it to
AHJIC, which shall ipso facto be deemed to have purchased such Preference Shares, on the terms
and conditions set out in this 10.
	 
	10.2	 	The Put Option may be exercised by the Subscriber (or by any holder of Preference Shares
where the Subscriber may have transferred some or all of the Preference Shares to such
holder) -

33

 

	10.2.1	 	at any time after the occurrence of a “Redemption Event” as defined in the Preference Share
Terms; and
	 
	10.2.2	 	by the Subscriber (or the relevant holder of Preference Shares) delivering a written notice
to such effect to AHJIC.

	10.3	 	The Put Option shall -

	10.3.1	 	while exercisable, be irrevocable; and
	 
	10.3.2	 	automatically lapse and fall away on the first date after the Subscription Date on which
there are no longer any Preference Shares in issue.

	10.4	 	If the Subscriber or any holder of Preference Shares (“Seller”) exercises the Put Option in
accordance with the provisions of this 10, it shall give rise to a sale by that Seller to
AHJIC of the Preference Shares held by that Seller and a cession by that Seller to AHJIC of
all its rights, title and interest in and to the Preference Shares so sold (“Sale Agreement”)
on and with effect from the date on which that Seller has delivered the written notice
referred to in 10.2.2 to AHJIC (“Exercise Date”), which Sale Agreement shall be on the
following terms and conditions -

	10.4.1	 	indivisible transaction
	 
	 	 	the sale of the Preference Shares so sold and the cession of all the Seller’s
rights, title and interest therein and thereto by the Seller to AHJIC shall be one
indivisible transaction;
	 
	10.4.2	 	consideration
	 
	 	 	the amount payable by AHJIC to the Seller for each of the Preference Shares so sold
shall be an amount equal to the Redemption Amount of that Preference Share,
together with such additional amount (if any) as may be necessary to place the
Seller in the same position it would have been in had the Company redeemed that
Preference Share in accordance with the Preference Share Terms, including without
double counting

34

 

	 	 	(a) any Tax, duty, levy, surcharge or imposition of any nature whatever and any
penalty or interest payable in respect thereof which is or may become payable by
the Seller, and (b) any credit for STC or any Tax on dividends that the Seller
would have received as a result thereof;
	 
	10.4.3	 	delivery and payment

	10.4.3.1	 	the Seller shall, on the date that is two Business Days after the Exercise Date (“Payment
Date”) -

	10.4.3.1.1	 	deliver either (i) the share certificate(s) in respect of Preference Shares sold by it
to AHJIC together with a share transfer form in respect of such Preference Shares duly signed
by that Seller, dated not more than three Business Days prior to the Exercise Date but blank
as to transferee, or (ii) a written indemnity in accordance with the Company’s articles of
association in respect of such Preference Shares where the share certificate(s) have been lost
or destroyed; and
	 
	10.4.3.1.2	 	cede all of the Seller’s rights, title and interest in and to each Preference Share so
sold to AHJIC on and with effect from the Payment Date;

	10.4.3.2	 	AHJIC shall pay the aggregate amount payable to the Seller in terms of 10.4.2 to the
Seller in immediately available funds, without any set-off, withholding or reduction of any
nature, in the currency of the RSA to such bank account in the RSA as that Seller may require
for such purpose on the Payment Date against delivery by that Seller of the documents to be
delivered by it in terms of 10.4.3.1;

	10.4.4	 	no warranties
	 
	 	 	the Seller shall warrant that it has not encumbered any Preference Share so sold,
but shall give no other warranties of whatsoever nature in relation to any
Preference Share so sold, same being sold entirely voetstoots;

35

 

	10.4.5	 	risk
	 
	 	 	all risk and benefit in and to the Preference Shares so sold shall pass to AHJIC on
the Payment Date;
	 
	10.4.6	 	costs
	 
	 	 	AHJIC shall pay all costs, charges, Tax, duties and levies to transfer the
Preference Shares so sold to it;
	 
	10.4.7	 	breach

	10.4.7.1	 	should AHJIC breach the Sale Agreement, the Seller shall be entitled, without prejudice to
its other rights or remedies in terms thereof or at law, to cancel that Sale Agreement on
notice to AHJIC to such effect, and at its election -

	10.4.7.1.1	 	to proceed to dispose of any or all of the Preference Shares so sold and then to recover
from AHJIC, in the form of damages, any shortfall between the amount that AHJIC was obliged to
pay under such Sale Agreement and the net amount (after costs) realised from such disposal; or
	 
	10.4.7.1.2	 	to claim damages from AHJIC;

	10.4.7.2	 	should the Seller breach the Sale Agreement, AHJIC shall be entitled, without prejudice to
its other rights or remedies in terms hereof or at law, to cancel that Sale Agreement on
notice to the Seller.

	11	 	GUARANTEES

	11.1	 	Each of the Relevant Persons hereby, irrevocably and unconditionally, guarantee as a
principal and independent obligation in favour of the Subscriber and each holder of Preference
Shares -

36

 

	11.1.1	 	the due and punctual payment and performance by the Company and every other Relevant Person
of all of the obligations (actual, contingent, current and future) of the Company and every
other Relevant Person to the Subscriber and each holder of Preference Shares under the
Financing Agreements (collectively “Guaranteed Obligations”); and
	 
	11.1.2	 	to pay, without delay or demand of proof of any obligation, failure, breach or default on
the part of the Company or any other Relevant Person, to the Subscriber and each holder of
Preference Shares, forthwith upon receipt of first written demand therefor or forthwith upon
the Subscriber and/or any holder of Preference Shares otherwise becoming entitled thereto (as
the case may be), any and all amounts which may be or become payable by the Company and every
other Relevant Person to the Subscriber and/or the relevant holder of Preference Shares
claiming under this Guarantee (as the case may be) (“Claimant”), together with (if the amount
so claimed by the Claimant is an amount that would otherwise have been payable by the Company
pursuant to the Preference Share Terms) such additional amount (if any) as may be necessary to
place the Claimant in the same position it would have been in had the Company made such
payment in accordance with the Preference Share Terms from its distributable reserves or
profits available for distribution, including (a) any Tax, duty, levy, surcharge or imposition
of any nature whatever and any penalty or interest payable in respect thereof which is or may
become payable by the Claimant, and (b) any credit for STC or any Tax on dividends that the
Claimant would have received as a result thereof.

	11.2	 	Each Guarantee is without prejudice and in addition to, and not in substitution of, any other
security (“Other Security”) which may have been granted by the Company, any other Relevant
Person and/or any other third party to the Subscriber and/or each holder of Preference Shares.
The validity and/or operation of any Other Security shall not be affected by any Guarantee.

	11.3	 	Each Guarantee shall -

	11.3.1	 	become of full force and effect from the Signature Date;

37

 

	11.3.2	 	expire upon the earlier of -

	11.3.2.1	 	the first date after the Subscription Date on which (i) there are no longer any Preference
Shares in issue and (ii) all of the Guaranteed Obligations have been fully and finally
discharged; and
	 
	11.3.2.2	 	all the Relevant Persons’ obligations in terms of the Guarantees having been fully and
finally discharged and there being no contingent obligations in existence; and

	11.3.3	 	be irrevocable as from the date referred to in 11.3.1 until the expiry thereof in terms
of 11.3.2.

	11.4	 	Neither the obligations of any Relevant Person set out herein, nor the rights, powers and
remedies conferred upon the Subscriber and/or any holder of Preference Shares in respect of a
Guarantee shall be discharged, impaired or otherwise affected by -

	11.4.1	 	the Company and/or any Relevant Person being liquidated, wound-up (whether provisionally or
finally) or suffering any similar legal disability or any change in the status, function,
control and/or ownership of the Company or any Relevant Person;
	 
	11.4.2	 	any failure to fully take any security now or hereafter agreed to be taken;
	 
	11.4.3	 	any amendment to any agreement for the time being subsisting between the Subscriber and/or
any holder of Preference Shares (on the one hand) and the Company, any Relevant Person and/or
any other third party (on the other hand);
	 
	11.4.4	 	any fluctuation or reduction in, extension for any period whatever, or temporary extinction
of the Guaranteed Obligations;
	 
	11.4.5	 	any failure to realise or fully realise the value of, or any release, discharge, exchange or
substitution of, any security taken; and/or

38

 

	11.4.6	 	any other act, event and/or omission which, but for this provision, might operate to
discharge, impair or otherwise affect any of the obligations of the Relevant Person in terms
of this Guarantee or any of the rights, powers or remedies conferred upon the Subscriber
and/or any holder of Preference Shares by law.

	11.5	 	Accordingly, and without derogating from the aforegoing provisions, the Subscriber and each
holder of Preference Shares shall not be obliged, before exercising any rights, powers or
remedies conferred upon any of them in terms of any Guarantee or by law -

	11.5.1	 	to make any demand on any person or entity other than the Relevant Person giving the
Guarantee;
	 
	11.5.2	 	to take any action or obtain any judgement in any court against any person or entity; or
	 
	11.5.3	 	to make, file or prove any claim in the winding-up or dissolution of any person or entity.

	11.6	 	Each of the Relevant Persons warrants and undertakes in favour of the Subscriber and each
holder of Preference Shares that it has a material interest in granting the Guarantees.
	 
	11.7	 	The Company and each Relevant Person shall procure that any person or entity which becomes a
Relevant Person after the Signature Date (other than ARMGold, in respect of which the
provisions of 6.2.29 and 22.7 shall apply) shall bind itself to this Agreement as a guarantor
of the Guaranteed Obligations in terms of this 11.
	 
	11.8	 	Notwithstanding anything to the contrary in this 11, the Guarantee given by Harmony in terms
of this 11 shall not apply in respect of any obligation by AHJIC in terms of 9.

39

 

	12	 	RIGHT OF FIRST REFUSAL

	12.1	 	The Company shall not, at any time, refinance any of the Preference Shares (whether in whole
or in part), unless –

	12.1.1	 	such refinancing is done only by the Subscriber; or
	 
	12.1.2	 	the Company, before doing so, first obtains underwritten credit approved proposals from
interested parties setting out, in reasonable detail, the terms and conditions upon which such
refinancing is offered to the Company and the Company, before accepting any such offer, first
allows the Subscriber twenty Business Days within which to exercise its right of first refusal
referred to in 12.2.

	12.2	 	The Subscriber shall have the right of first refusal to provide any refinancing referred to
in 12.1 on substantially similar and no less favourable terms as those offered by any third
party in terms of the underwritten credit approved proposals as disclosed to the Subscriber in
terms of 12.1.2.

	13	 	GENERAL PROVISIONS APPLICABLE TO PAYMENTS

	13.1	 	Unless the Subscriber otherwise agrees in writing, the Company and each Relevant Person shall
pay all amounts payable by it to the Subscriber in terms of this Agreement and/or in respect
of the Preference Shares in immediately available funds, without any set-off, withholding or
deduction of any nature, in the currency of the RSA to such bank account as the Subscriber may
from time to time require for such purpose.
	 
	13.2	 	The Company and each Relevant Person shall, without prejudice to any other rights that the
Subscriber may have in terms of this Agreement or at law, pay to the Subscriber default
interest on any amount falling due for payment in terms of this Agreement which is not paid in
full on due date. Default interest as aforesaid shall be calculated and accrue from the date
that an amount became due and payable to the actual date of payment thereof (both dates
inclusive) at a rate equal to the Prime Rate plus 2%.

40

 

	14	 	INDEMNITY

	14.1	 	If, after all of the Preference Shares have been redeemed, an “Adjustment Event” (as defined
in the Preference Share Terms) occurs or the effect thereof only becomes apparent or any
holder of any Preference Share only becomes aware of the effects of such Adjustment Event
after all of the Preference Shares have been redeemed, the Company and each Relevant Person
shall and hereby does indemnify and hold each and every holder of a Preference Share harmless
against the effect of such Adjustment Event and, accordingly, shall pay to such holder,
forthwith on demand therefor, such amount as may be necessary to put such holder in the
position it would have been in had such Adjustment Event not occurred or the effects thereof
not only become apparent after the redemption of all of the Preference Shares (including such
amount as may be necessary to fully compensate each such holder for the loss of any credit for
STC or for any Tax on dividends and including such amount as may be necessary to fully
compensate such holder for the effluxion of time up to the date on which such further amount
is paid in terms of this 14.1).
	 
	14.2	 	The relevant holder referred to in 14.1 shall provide a certificate setting out the amount
required to be paid by the Company or any Relevant Person pursuant to 14.1, mutatis mutandis
in accordance with the provisions of 15, together with a certificate issued by that holder’s
auditors certifying the correctness of the amount so calculated.
	 
	14.3	 	The provisions of this 14 shall –

	14.3.1	 	constitute a stipulatio alteri in favour of each holder of a Preference Share that is not a
Party to this Agreement, the benefits of which shall be deemed to have been automatically
accepted upon such holder becoming a holder of a Preference Share;
	 
	14.3.2	 	survive the termination of this Agreement for any reason whatsoever.

	15	 	CERTIFICATE
	 
	 	 	A certificate under the hand of any director or manager of the Subscriber as to the existence
and amount of the indebtedness of the Company and/or any Relevant Person to the Subscriber
under this Agreement at any time, as to the fact that such

41

 

	 	 	amount is due and payable, the amount of interest accrued thereon, the rate of interest
applicable thereto and/or as to any other fact, matter or thing relating to the indebtedness
of the Company and/or any Relevant Person to the Subscriber shall, in the absence of manifest
error, be prima facie proof of its contents and of their correctness for all purposes. It
shall not be necessary to prove the appointment of the person signing any such certificate.
	 
	16	 	CESSION

	16.1	 	Neither the Company nor any Relevant Person shall be entitled to cede any of its rights nor
delegate any of its obligations hereunder.
	 
	16.2	 	The Subscriber (or any person to whom any of the Preference Shares are transferred) shall be
entitled to transfer all or any of the Preference Shares to a bank (whether South African or
international) or financial institution with a credit risk rating which is at least similar to
that of the Subscriber (“Transferee”). Upon such transfer, the Subscriber (or any person to
whom its rights and/or obligations are ceded, delegated or assigned in terms of this clause)
shall be entitled to cede, delegate or assign a rateable portion of its rights and/or
obligations under this Agreement either absolutely or as collateral security to any Transferee
Subscriber (notwithstanding that a cession or assignment to more than one person may result in
a splitting of claims against the Company and/or any Relevant Person) and on any such cession
or assignment taking place, the Company and each Relevant Person shall, if so required by any
cessionary, make all relevant payments (the right to receive which have been ceded to such
cessionary) direct to such cessionary, provided that -

	16.2.1	 	the Subscriber notifies the Company and Harmony of the identity of the cessionary in
writing;
	 
	16.2.2	 	such cessionary becomes bound by the provisions of this Agreement and the Preference Share
Terms; and
	 
	16.2.3	 	such cession and/or assignment shall only be done in compliance with the assignment schedule
attached hereto as Annexure J.

42

 

	16.3	 	Each Party shall execute and procure that they are executed such documents and agreements as
are necessary to effect the transfer of rights or obligations to a cessionary made in
accordance with this Agreement.

	17	 	DOMICILIUM AND NOTICES

	17.1	 	The Parties choose domicilium citandi et executandi for all purposes of the giving of any
notice, the serving of any process and for any other purpose arising from this Agreement, as
follows -

	17.1.1	 	Subscriber                -     16th Floor

 1 Merchant Place

 1 Fredman Drive

 Sandton

 2196

	 	 	telefacsimile              -    (011) 282-8328

marked for the attention of : Head of Administration

	17.1.2	 	Company                  -     Block 27 Randfontein Office Park

 Cnr Main Reef Road

 and Ward Avenue

 Randfontein

	 	 	telefacsimile              -    (011) 684-0188

marked for the attention of : Company Secretary

	17.1.3	 	Harmony and every

other Relevant Person  - Block 27 Randfontein Office Park

 Cnr Main Reef Road

 and Ward Avenue

 Randfontein

	 	 	telefacsimile                -  (011) 684-0188

marked for the attention of : Company Secretary

	17.2	 	Any Party shall be entitled from time to time, by written notice to the others, to vary its
domicilium to any other physical address within the RSA and/or its telefacsimile number.
	 
	17.3	 	All notices under this Agreement shall be in writing.

43

 

	17.4	 	Any notice given by any Party to another which is delivered by hand during the normal
business hours of the addressee at the addressee’s domicilium for the time being shall be
rebuttably presumed to have been received by the addressee at the time of delivery.
	 
	17.5	 	Any notice given by any Party to another which is transmitted by telefacsimile to the
addressee at the addressee’s telefacsimile address for the time being shall be presumed, until
the contrary is proved by the addressee, to have been received by the addressee on the date of
successful transmission thereof.
	 
	17.6	 	The clause shall not invalidate any notice actually given or payment actually made otherwise
than as specified in 17.4 and 17.5.

	18	 	CONFIDENTIALITY

	18.1	 	Subject to 18.2 and save as may be otherwise stipulated elsewhere in any Financing Agreement,
no Party shall, at any time after the Signature Date, directly or indirectly disclose, or
directly or indirectly use, whether for its own benefit or that of any other person, -

	18.1.1	 	any information relating to any other Party which that other Party furnishes or makes
available to it, including without limitation all communications (whether written, oral or in
any other form) and all reports, statements, schedules and other data concerning any
financial, technical, labour, marketing, administrative, accounting or other matter,
(collectively, the “Confidential Information”);
	 
	18.1.2	 	any document or other record (whether in electronic or any other medium whatsoever)
containing Confidential Information which is supplied to it by any other Party as well as
documents, diagrams and records which are produced by it (whether or not by copying,
photocopying or otherwise reproducing documents or records supplied to it), and containing any
confidential information (“Confidential Records”).

	18.2	 	Notwithstanding 18.1 -

44

 

	18.2.1	 	Confidential Information may be disclosed by a Party to the extent to which disclosure is
required by law (excluding contractual obligations), by the rules of any stock exchange by
which it is bound or for purposes of court proceedings;
	 
	18.2.2	 	any Party may disclose Confidential Information and Confidential Records to, and permit the
use thereof by, that Party’s directors, responsible employees and professional advisors who
require such disclosure for the purpose of such Party implementing or enforcing any of the
Financing Agreements or obtaining professional advice or for the purpose of complying with any
law. If any such director, employee or professional advisor commits an act or omission which
would have been a breach of this Agreement had such director, employee or professional advisor
been bound by the provisions hereof, then such act or omission (as the case may be) shall be
deemed to be a breach of this 18 by the Party which disclosed or permitted disclosure to such
person;
	 
	18.2.3	 	Confidential Information may be disclosed or used by a Party to the extent to which it -

	18.2.3.1	 	is made public other than as a result of any breach of any of the Financing Agreements or
any other agreement. The expression “made public” shall, for this purpose, have the same
meaning as when it is used in the Securities Services Act, 36 of 2004, which is not limited to
the circumstances referred to in section 74(2) of that Act;
	 
	18.2.3.2	 	corresponds in substance to information disclosed and/or made available by a third party
to that Party at any time without any obligation not to disclose same, unless that Party knows
that the third party from whom it received that information is prohibited from transmitting
the information to that Party by a contractual, legal or fiduciary obligation to any other
Party;
	 
	18.2.3.3	 	in respect of information which was already in the possession of that Party prior to its
disclosure by the other Party to that Party or is

45

 

	 	 	independently developed by that Party without reference to the Confidential
Information.

	19	 	SEVERABILITY
	 
	 	 	All provisions of this Agreement are, notwithstanding the manner in which they have been
grouped together or linked grammatically, severable from each other. Any provision of this
Agreement which is or becomes unenforceable, whether due to voidness, invalidity, illegality,
unlawfulness or for any other reason whatever, shall, only to the extent that it is so
unenforceable, be treated as pro non scripto and the remaining provisions of this Agreement
shall remain of full force and effect. The Parties declare that it is their intention that
this Agreement would be executed without such unenforceable provision if they were aware of
such unenforceability at the time of execution hereof.
	 
	20	 	INDEPENDENT ADVICE
	 
	 	 	The Company and each Relevant Person acknowledges that it has been free to secure independent
legal, Tax, accounting and/or other advice as to the nature and effect of all of the
provisions of the Financing Agreements and that it either has taken such independent legal,
Tax, accounting and/or other advice or has dispensed with the necessity of doing so. Further,
the Company and each Relevant Person acknowledges that all of the provisions of the Financing
Agreements 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 the
Financing Agreements.
	 
	21	 	GOVERNING LAW AND JURISDICTION

	21.1	 	This Agreement shall in all respects (including its existence, validity, interpretation,
implementation, termination and enforcement) be governed by the law of the RSA.
	 
	21.2	 	The Parties hereby consent and submit to the non-exclusive jurisdiction of the Witwatersrand
Local Division of the High Court of the RSA in respect of any dispute or claim arising out of
or in connection with this Agreement.

46

 

	22	 	GENERAL

	22.1	 	This Agreement constitutes the sole record of the agreement between the Parties in relation
to the subject matter hereof. No Party shall be bound by any express, tacit or implied term,
representation, warranty, promise or the like not recorded herein. This Agreement supersedes
and replaces all prior commitments, undertakings or representations, whether oral or written,
between the Parties in respect of the subject matter hereof.
	 
	22.2	 	No addition to, variation, novation, waiver or agreed cancellation of any provision of this
Agreement shall be binding upon the Parties unless reduced to writing and signed by or on
behalf of the Parties.
	 
	22.3	 	No indulgence or extension of time which any Party may grant to the other Parties shall
constitute a waiver of or, whether by estoppel or otherwise, limit any of the existing or
future rights of the grantor in terms hereof, save in the event and to the extent that the
grantor has signed a written document expressly waiving or limiting such right.
	 
	22.4	 	Without prejudice to any other provision of this Agreement, any successor-in-title, including
any liquidator, judicial manager, curator or trustee, of any Party shall be bound by this
Agreement.
	 
	22.5	 	The signature by any Party of a counterpart of this Agreement shall be as effective as if
that Party had signed the same document as the other Parties.
	 
	22.6	 	The obligations of the Company and the Relevant Persons under this Agreement shall be joint
and several.
	 
	22.7	 	Harmony shall procure that ARMGold, even though ARMGold is not a Party to this Agreement,
shall comply with the provisions of this Agreement as a Relevant Person until such time as all
the shares in the issued share capital of ARMGold or all the Assets of ARMGold are disposed
of.

47

 

	23	 	COSTS AND FEES

	23.1	 	Harmony shall bear and pay all costs and charges of and incidental to, the negotiation,
drafting, preparation and entry into of the Financing Agreements, including stamp duty (if
any) payable in respect hereof.
	 
	23.2	 	Without prejudice to the other rights of the Subscriber in terms hereof or at law, the
Company and Harmony undertake, jointly and severally, to pay the amount of all reasonable
costs, charges and expenses of whatever nature (reasonably incurred by the Subscriber in
securing or endeavouring to secure fulfilment of the Company’s and/or Harmony’s obligations or
in exercising its rights in terms of any of the Financing Agreements, including collection
commission, tracing charges and legal costs on the scale as between an attorney and his own
client, storage charges, broking costs, stamp duties, taxes and other fiscal charges and all
reasonable costs and expenses of valuation, maintenance, advertising, realisation (including
agent’s and auctioneer’s commissions and other charges and disbursements).

Signed at Johannesburg on 20 March 2007

	 	 	 	 	 
	 

	 	for
	 	Randfontein Estates Limited
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	who warrants that he is duly
authorised hereto

Signed at Johannesburg on 20 March 2007

	 	 	 	 	 
	 

	 	for
	 	Harmony Gold Mining Company Limited
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	who warrants that he is duly
authorised hereto

48

 

Signed at Johannesburg on 20 March 2007

	 	 	 	 	 
	 	 	for	 	Evander Gold Mines Limited
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	who warrants that he is duly
authorised hereto

Signed at Johannesburg on 20 March 2007

	 	 	 	 	 
	 	 	for	 	ARMGold/Harmony Freegold Joint Venture

Company (Proprietary) Limited
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	who warrants that he is duly
authorised hereto

Signed at Johannesburg on 20 March 2007

	 	 	 	 	 
	 	 	for	 	Avgold Limited
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	who warrants that he is duly
authorised hereto

Signed at Johannesburg on 20 March 2007

	 	 	 	 	 
	 	 	for	 	ARMGold Harmony Joint Investment

Company (Proprietary) Limited
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	who warrants that he is duly
authorised hereto

49

 

Signed at Johannesburg on 20 March 2007

	 	 	 	 	 
	 

	 	for
	 	FirstRand Bank Limited
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	who warrants that he is duly
authorised hereto
	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	who warrants that he is duly
authorised hereto

50

 

ANNEXURE A — RESOLUTION OF BOARD OF DIRECTORS OF ARMGOLD HARMONY JOINT INVESTMENT COMPANY
(PROPRIETARY) LIMITED

1

 

ANNEXURE B — RESOLUTION OF BOARD OF DIRECTORS OF ARMGOLD/HARMONY FREEGOLD JOINT VENTURE COMPANY
(PROPRIETARY) LIMITED

1

 

ANNEXURE C — RESOLUTION OF BOARD OF DIRECTORS OF AVGOLD LIMITED

1

 

ANNEXURE D — RESOLUTION OF BOARD OF DIRECTORS OF RANDFONTEIN ESTATES LIMITED

1

 

ANNEXURE E — RESOLUTION OF BOARD OF DIRECTORS OF EVANDER GOLD MINES LIMITED

1

 

ANNEXURE F — RESOLUTION OF BOARD OF DIRECTORS OF HARMONY GOLD MINING COMPANY LIMITED

1

 

ANNEXURE G — RIGHTS, PRIVILEGES AND CONDITIONS ATTACHING TO PREFERENCE SHARES

1

 

ANNEXURE H — SUSPENSIVE CONDITIONS

All expressions defined in the subscription agreement (“Subscription Agreement”) to which this
document is attached as Annexure H shall, in this annexure, bear the same meanings assigned to them
in such Subscription Agreement.

In terms of clause 3.1 of the Subscription Agreement, the Subscription Agreement is subject to the
fulfilment of the following Suspensive Conditions to the satisfaction of the Subscriber —

	1	 	each of the Financing Agreements is signed in form and substance acceptable to the Subscriber
and becomes unconditional and fully binding on the parties thereto as a result of the
fulfilment or waiver of any conditions precedent to which they may be subject (other than any
such condition precedent requiring the Subscription Agreement to become unconditional and
fully binding on the Parties);
	 
	2	 	each person or entity that is party to any of the Financing Agreements delivering to the
Subscriber —

	2.1	 	all documents required by the Subscriber pursuant to the “Know Your Client” provisions of the
Financial Intelligence Centre Act, 2001;
	 
	2.2	 	where it is not a natural person, an original resolution of its board of directors and, to
the extent necessary, its members (or such other documentary proof acceptable to the
Subscriber) —

	2.2.1	 	approving the terms and the entering into of the Financing Agreements to which it is a
party;
	 
	2.2.2	 	authorising a specified person or persons to execute the agreements and other documents
referred to in 2.2.1 for, on behalf and in the name of the relevant entity concerned;
	 
	2.2.3	 	authorising a specified person or persons to sign and/or dispatch, for, on behalf of and in
the name of the relevant entity concerned, all documents and notices to be signed and/or
dispatched by it under or in connection with any of the agreements or other documents referred
to in 2.2.1; and

1

 

	2.2.4	 	insofar as the Company is concerned, creating the Preference Shares, placing same under the
control of the board of directors of the Company and allotting and issuing same to the
Subscriber pursuant to the Subscription Agreement,

	 	 	all in a form and in substance acceptable to the Subscriber;

	3	 	the Company delivering to the Subscriber —

	3.1	 	an original certificate issued by the Company and signed by two directors of the Company
confirming that, after the Company having made due and proper enquiry —

	3.1.1	 	no Material Adverse Event has occurred or is continuing as at the date of such certificate
and no event which will, or may or is likely to, lead to such a Material Adverse Event has
occurred or is continuing as at the date of such certificate;
	 
	3.1.2	 	no “Redemption Event” as defined in the Preference Share Terms has occurred or is continuing
as at the date of such certificate and no event which will, or may or is likely to, lead to
such a “Redemption Event” has occurred or is continuing as at the date of such certificate;
and
	 
	3.1.3	 	all warranties, representations and undertakings set out in the Financing Agreements are
true and accurate in all material respects as at the date of such certificate;

	 	 	which certificate shall be in a form and in substance acceptable to the Subscriber;

	3.2	 	the originals of the Financing Agreements, duly signed and executed by all parties thereto;
	 
	3.3	 	the originals of all acknowledgements, confirmations and notices to be delivered in terms of
the Security Documents, all in a form and in substance acceptable to the Subscriber;

2

 

	3.4	 	a confirmation duly signed by the central securities depository participant of AHJIC in
respect of the Gold Fields Shares —

	3.4.1	 	confirming, inter alia, that it is aware of the provisions of the written cession in
securitatem debiti and pledge by AHJIC in favour of the Subscriber in terms of which AHJIC
cedes in security and pledges to the Subscriber all of its rights, title and interest in and
to the Gold Fields Shares; and
	 
	3.4.2	 	acknowledging, in recognition of the security and pledge referred to in 3.4.1 above, that
it shall —

	3.4.2.1	 	make the required entries in the securities account in the name of AHJIC of the
Subscriber’s rights and interest pursuant to such cession and pledge in accordance with the
provisions of the Security Services Act 2004 and the rules of STRATE Limited; and
	 
	3.4.2.2	 	cause an entry to be made in its securities account in the register of STRATE Limited of
the fact that the securities have been ceded and pledged in terms of such cession and pledge
in accordance with the Securities Services Act, 2004 and the rules of STRATE Limited;

	3.5	 	a certified copy of the special resolution adopted by the members of the Company and
registered by the Registrar of Companies creating the Preference Shares and amending the
Company’s memorandum and articles of association so as to provide for the Preference Share
Terms; and
	 
	3.6	 	proof, in a form and in substance acceptable to the Subscriber, that it has and will, for so
long as it is a public company, continue to have at least seven members holding ordinary
shares in its issued share capital.

3

 

ANNEXURE I — FORM OF CESSION IN SECURITATEM DEBITI

1

 

ANNEXURE J — FORM OF ASSIGNMENT SCHEDULE

[TO BE PLACED ON ASSIGNING PARTY’S LETTERHEAD]

To: [Assignee]

From: [Assigning Party]

Dear Sirs

CESSION, ASSIGNMENT AND DELEGATION OF RIGHTS AND OBLIGATIONS UNDER THE SUBSCRIPTION AGREEMENT
CONCLUDED AMONGST, INTER ALIA, RANDFONTEIN ESTATES LIMITED, FIRSTRAND BANK LIMITED (acting through
its RAND MERCHANT BANK division), DATED [          ] (“Agreement”)

	1	 	We refer to the Agreement. Terms used in this deed of cession, assignment and delegation
shall have the meaning assigned to them in the Agreement.
	 
	2	 	We confirm that, subject to —

	2.1	 	receipt by us of an amount of ZAR[          ]; and
	 
	2.2	 	your execution and delivery to the Company of an Accession Deed in the form attached hereto
as Schedule 1,

we hereby cede, assign and delegate to you [          ] [INSERT DESCRIPTION OF RELEVANT
RIGHTS AND OBLIGATIONS], all with effect from [          ], but subject to receipt by the
Company of a duly executed Accession Deed.

1

 

	 	 	 	 	 	 	 	 	 
	Signed at

	 	on
	 	 	 	 	2007	 
	 
	 	 	 	 	 	 	 	 
	 

	 	for
	 	[Assigning Party]	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	who warrants that he is duly
authorised hereto	 	 	 	 

We, the undersigned, [Assignee], hereby
agree to accept the cession, assignment and
delegation conferred upon us in terms
hereof.

	 	 	 	 	 	 	 	 	 
	Signed at

	 	on
	 	 	 	 	2007	 
	 
	 	 	 	 	 	 	 	 
	 

	 	for
	 	[Assignee]	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	who warrants that he is duly
authorised hereto	 	 	 	 

2

 

SCHEDULE 1

ACCESSION DEED

To: [The Company]

From: [Assignee]

Dear Sirs

ACCESSION TO THE SUBSCRIPTION AGREEMENT CONCLUDED AMONGST, INTER ALIA, RANDFONTEIN ESTATES LIMITED,
FIRSTRAND BANK LIMITED (acting through its RAND MERCHANT BANK division), DATED [          ]
(“Agreement”)

	1	 	We refer to the Agreement. This is an Accession Deed and the terms used in this Accession
Deed shall have the same meaning as in the Agreement.
	 
	2	 	This Accession Deed is delivered to you pursuant to the provisions of clause 16 of the
Agreement.
	 
	3	 	We refer to the written deed of cession, assignment and delegation to which this Accession
Deed is attached as Schedule 1 pursuant to which [          ] [INSERT NAME OF ASSIGNOR]
has ceded, assigned and delegated [          ] [INSERT DESCRIPTION OF RIGHTS AND
OBLIGATIONS ] to us (hereinafter the “Cession, Assignment and Delegation”).
	 
	4	 	We hereby —

	4.1	 	advise you that, pursuant to the Cession, Assignment and Delegation and against payment of a
consideration of ZAR[          ] to the Assignor and subject to the terms and conditions
of the Agreement, we have become a holder of Preference Shares and have acquired the rights
afforded to Subscribers under the Agreement;
	 
	4.2	 	confirm by execution and delivery of this Accession Deed, that we shall, with effect from the
date of acceptance of this Accession Deed by the Company, become a party to and accordingly
become bound by the terms and conditions

3

 

	 	 	of the Agreement and the Preference Share Terms (“Relevant Agreements”).

	5	 	Our address and details for purposes of the notice and domicilium provisions of the Agreement
is as follows -

[INSERT DOMICILIUM DETAILS].

	6	 	This Accession Deed has been executed on the date stated above and shall be governed by and
construed in accordance with the laws of the Republic of South Africa.

	 	 	 	 	 	 	 	 	 
	Signed at

	 	on
	 	 	 	 	2007	 
	 
	 	 	 	 	 	 	 	 
	 

	 	for
	 	[Assignee]	 	 	 	 
	 
	 	 	 	 	 
	 

	 	 	 	who warrants that he is duly
authorised hereto	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Address:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 

We acknowledge receipt hereof on this the                     day of                     2007

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00133-of-00352.parquet"}]]