Document:

<PAGE>
                                                                     Exhibit 4.6

                                                                  EXECUTION COPY

                            BAXTER INTERNATIONAL INC.

                                       AND

                          BANK ONE TRUST COMPANY, N.A.,

                                   as Trustee

                             _______________________

                          SUPPLEMENTAL INDENTURE NO. 1

                          Dated as of December 17, 2002

                            ________________________

<PAGE>

         THIS SUPPLEMENTAL INDENTURE No. 1 (this "Supplemental Indenture"),
dated as of December 17, 2002, is between BAXTER INTERNATIONAL INC., a Delaware
corporation (the "Company"), and BANK ONE TRUST COMPANY, N.A., a national
banking association, as Trustee (the "Trustee").

                                 R E C I T A L S

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an Indenture dated as of April 26, 2002 (the "Base Indenture" and
together with this Supplemental Indenture, the "Indenture"), providing for the
issuance from time to time of series of the Company's Securities (as defined in
the Base Indenture);

         WHEREAS, Section 901(4) of the Base Indenture provides for the Company
and the Trustee to enter into an indenture supplemental to the Base Indenture to
establish the form or terms of Securities of any series as permitted by Sections
201 or 301 of the Base Indenture;

         WHEREAS, pursuant to Section 301 of the Base Indenture, the Company
wishes to provide for the issuance of a new series of Securities to be known as
its 3.6% Senior Notes due 2008 (the "Senior Notes"), the form and terms of such
Senior Notes and the terms, provisions and conditions thereof to be set forth as
provided in this Supplemental Indenture;

         WHEREAS, the Company has requested that the Trustee execute and deliver
this Supplemental Indenture and all requirements necessary to make this
Supplemental Indenture a valid, binding and enforceable instrument in accordance
with its terms, and to make the Senior Notes, when executed by the Company and
authenticated and delivered by the Trustee, the valid, binding and enforceable
obligations of the Company, have been done and performed, and the execution and
delivery of this Supplemental Indenture has been duly authorized in all
respects.

         NOW, THEREFORE, in consideration of the covenants and agreements set
forth herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

                                    ARTICLE 1
                                   Definitions

         Section 1.01  Relation to Base Indenture. This Supplemental Indenture
constitutes an integral part of the Base Indenture.

                                        1

<PAGE>

         Section 1.02. Definition Of Terms. For all purposes of this
Supplemental Indenture:

                (a)    Capitalized terms used herein without definition shall
         have the meanings specified in the Base Indenture, or, if not defined
         in the Base Indenture, in the Purchase Contract Agreement, the Pledge
         Agreement or the Remarketing Agreement;

                (b)    a term defined anywhere in this Supplemental Indenture
         has the same meaning throughout;

                (c)    the singular includes the plural and vice versa;

                (d)    headings are for convenience of reference only and do not
         affect interpretation;

                (e)    the following terms have the meanings given to them in
         this Article 1:

         "Accounting Event" means the receipt by the audit committee of the
board of directors of the Company of a written report in accordance with
Statement on Auditing Standards ("SAS") No. 97, "Amendment to SAS No. 50 -
Reports on the Application of Accounting Principles", from the Company's
independent auditors, provided at the request of the management of the Company,
to the effect that, as a result of a change in accounting rules after the date
hereof, the Company must either (i) account for all or any portion of the
Purchase Contracts as a derivative under SFAS 133 (or otherwise mark-to-market
or measure at fair value all or any portion of the Purchase Contracts, with
changes appearing in the Company's income statement) or (ii) account for the
Units using the if-converted method under SFAS 128, and that such accounting
treatment will cease to apply upon redemption of the Senior Notes.

         "Applicable Principal Amount" means the aggregate principal amount of
the Senior Notes that are components of Corporate Units.

         "Business Day" shall have the meaning specified in the Purchase
Contract Agreement.

         "Corporate Units" shall have the meaning specified in the Purchase
Contract Agreement.

         "Coupon Rate" shall have the meaning set forth in Section 2.05(a).

                                        2

<PAGE>

         "Depositary" means a clearing agency registered under Section 17A of
the Securities Exchange Act of 1934, as amended, that is designated to act as
Depositary for the Corporate Units pursuant to the Purchase Contract Agreement.

         "Depositary Participant" means a broker, dealer, bank, other financial
institution or other Person for whom from time to time the Depositary effects
book entry transfers and pledges of securities deposited with the Depositary.

         "Final Remarketing Price" shall have the meaning set forth in Section
8.02(b).

         "Global Senior Notes" shall have the meaning set forth in Section 2.04.

         "Interest Payment Date" shall have the meaning set forth in Section
2.05(b).

         "Maturity Date" shall have the meaning specified in Section 2.02.

         "Pledge Agreement" means the Pledge Agreement, dated as of December 17,
2002 among the Company, Bank One Trust Company, N.A., as Collateral Agent,
Custodial Agent and Securities Intermediary, and Bank One Trust Company, N.A.,
as Purchase Contract Agent and attorney-in-fact for the Holders of the Purchase
Contracts, as amended from time to time.

         "Purchase Contract Agreement" means the Purchase Contract Agreement,
dated as of December 17, 2002, between the Company and Bank One Trust Company,
N.A., as purchase contract agent, as amended from time to time.

         "Purchase Contracts" and "Purchase Contract" shall have their
respective meanings specified in the Purchase Contract Agreement.

         "Purchase Contract Settlement Date" means February 16, 2006.

         "Put Price" shall have the meaning set forth in Section 8.05(a).

         "Put Right" shall have the meaning set forth in Section 8.05(a).

         "Quotation Agent" means any primary U.S. government securities dealer
selected by the Company.

         "Record Date" means, with respect to any Interest Payment Date for the
Senior Notes, the first Business Day of the calendar month in which such
Interest Payment Date falls; provided that the Company may, at its option,
select any other day as the Record Date for any Interest Payment Date so long as
such

                                        3

<PAGE>

Record Date selected is more than one Business Day but less than sixty Business
Days prior to such Interest Payment Date.

         "Redemption Amount" shall mean, for each Senior Note, an amount equal
to the product of the principal amount of that Senior Note and a fraction, the
numerator of which is the Treasury Portfolio Purchase Price and the denominator
of which is the Applicable Principal Amount.

         "Redemption Price" shall mean, for each Senior Note, the Redemption
Amount plus any accrued and unpaid interest on such Senior Note to but excluding
the Special Event Redemption Date.

         "Remarketed Senior Notes" shall have the meaning set forth in Section
8.01(c).

         "Remarketing Agent" shall have the meaning set forth in the Remarketing
Agreement.

         "Remarketing Agreement" means the Remarketing Agreement, dated as of
December 17, 2002, among the Company, Banc of America Securities LLC, Credit
Suisse First Boston Corporation and UBS Warburg LLC, each as a potential
Remarketing Agent, and Bank One Trust Company, N.A., as Purchase Contract Agent,
as amended from time to time.

         "Remarketing Price" shall have the meaning set forth in Section
8.02(a).

         "Reset Effective Date" means the date three Business Days following the
date of a Successful Remarketing pursuant to which the Coupon Rate is reset to a
Reset Rate.

         "Reset Rate" means the interest rate per annum on the Senior Notes (i)
in the case of a Successful Remarketing prior to the Final Remarketing Date, as
determined by the Remarketing Agent as necessary to remarket the Remarketed
Senior Notes at a price per Remarketed Senior Note such that the aggregate price
for the Remarketed Senior Notes is equal to approximately 100.25% of the sum of
the Treasury Portfolio Purchase Price and Separate Senior Notes Purchase Price,
and (ii) in the case of a Successful Remarketing on the Final Remarketing Date,
as the rate necessary to remarket the Remarketed Senior Notes at a price per
Remarketed Senior Note such that the aggregate price for the Remarketed Senior
Notes is equal to approximately 100.25% of the aggregate principal amount of the
Remarketed Senior Notes; provided that if there are no Corporate Units
outstanding and none of the Holders elect to have Separate Senior Notes held by
them remarketed, or in the case of a Failed Remarketing, the interest rate
payable on the Senior Notes will not be reset and the interest rate payable on
the Senior

                                        4

<PAGE>

Notes shall continue to be the Coupon Rate; provided further that in no event
shall the Reset Rate exceed the maximum rate, if any, permitted by applicable
law.

         "Separate Senior Notes" means Senior Notes that are no longer a
component of Corporate Units.

         "Special Event" shall mean either a Tax Event or an Accounting Event.

         "Special Event Redemption" means the redemption of the Senior Notes
pursuant to the terms hereof following the occurrence of a Special Event.

         "Special Event Redemption Date" shall have the meaning set forth in
Section 3.01.

         "Tax Event" means the receipt by the Company of an opinion of counsel,
rendered by a law firm having a recognized national law practice, to the effect
that, as a result of any amendment to, change in or announced proposed change in
the laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority thereof or therein, or as a result of any
official administrative decision, pronouncement, judicial decision or action
interpreting or applying such laws or regulations, which amendment or change is
effective or which proposed change, pronouncement, action or decision is
announced on or after the date hereof, there is more than an insubstantial
increase in the risk that interest payable by the Company on the Senior Notes is
not, or within 90 days of the date of such opinion, will not be, deductible by
the Company, in whole or in part, for United States federal income tax purposes.

         "Treasury Portfolio" means a portfolio of (1) U.S. treasury securities
(or principal or interest strips thereof) that mature on or prior to February
15, 2006 in an aggregate amount equal to the Applicable Principal Amount, and
(2) (x) in the case of a Successful Remarketing prior to the Final Remarketing
Date, for the scheduled Interest Payment Date on the Purchase Contract
Settlement Date, U.S. treasury securities (or principal or interest strips
thereof) that mature on or prior to February 15, 2006 in an aggregate amount
equal to the aggregate interest payment (assuming no reset of the interest rate)
that would have been due on the Purchase Contract Settlement Date on the
Applicable Principal Amount, and (y) in the case of a Special Event Redemption,
for each scheduled Interest Payment Date that occurs after the Special Event
Redemption Date to and including the Purchase Contract Settlement Date, U.S.
treasury securities (or principal or interest strips thereof) that mature on or
prior to the business day immediately preceding such scheduled Interest Payment
Date in an aggregate amount equal to the aggregate interest payment (assuming no
reset of the interest rate) that would have been due on such scheduled Interest
Payment Date on the Applicable Principal Amount.

                                        5

<PAGE>

         "Treasury Portfolio Purchase Price" means the lowest aggregate ask-side
price quoted by a Primary Treasury Dealer to the Quotation Agent between 9:00
a.m. and 11:00 a.m. (New York City time) (i) in the case of a Special Event
Redemption, on the third Business Day immediately preceding the Special Event
Redemption Date for the purchase of the applicable Treasury Portfolio for
settlement on the Special Event Redemption Date, and (ii) in the case of a
Successful Remarketing prior to the Final Remarketing Date, on the date of such
Successful Remarketing for the purchase of the applicable Treasury Portfolio for
settlement on the third Business Day immediately following the date of such
Successful Remarketing.

         The terms "Company," "Trustee," "Indenture," "Base Indenture" and
"Senior Notes" shall have the respective meanings set forth in the recitals to
this Supplemental Indenture and the paragraph preceding such recitals.

                                    ARTICLE 2
                General Terms and Conditions of the Senior Notes

         Section 2.01.  Designation and Principal Amount. There is hereby
authorized a series of Securities designated as 3.6% Senior Notes due February
16, 2008 limited in aggregate principal amount to $1,100,000,000 (or up to
$1,250,000,000 to the extent that the Underwriters' over-allotment option is
exercised). The Senior Notes may be issued from time to time upon written order
of the Company for the authentication and delivery of Senior Notes pursuant to
Section 303 of the Base Indenture.

         Section 2.02.  Maturity. Unless a Special Event Redemption occurs prior
to the Maturity Date (defined below), the date upon which the Senior Notes shall
become due and payable at final maturity, together with any accrued and unpaid
interest, is February 16, 2008 (the "Maturity Date").

         Section 2.03.  Form, Payment and Appointment. Except as provided in
Section 2.04, the Senior Notes shall be issued in fully registered, certificated
form, bearing identical terms. Principal of and interest on the Senior Notes
will be payable, the transfer of such Senior Notes will be registrable, and such
Senior Notes will be exchangeable for Senior Notes of a like aggregate principal
amount bearing identical terms and provisions, at the office or agency of the
Company maintained for such purpose in the Borough of Manhattan, The City of New
York, which shall initially be the Corporate Trust Office of the Trustee;
provided, however, that payment of interest may be made at the option of the
Company by check mailed to the Holder at such address as shall appear in the
Security Register

                                        6

<PAGE>

or by wire transfer to an account appropriately designated by the Holder
entitled to payment.

         No service charge shall be made for any registration of transfer or
exchange of the Senior Notes, but the Company may require payment from the
Holder of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith.

         The Security Registrar and Paying Agent for the Senior Notes shall
initially be the Trustee.

         The Senior Notes shall be issuable in denominations of $50 and integral
multiples of $50 in excess thereof.

         Section 2.04.  Global Senior Notes. Senior Notes that are no longer a
component of the Corporate Units and released from the Collateral Account (as
defined in the Pledge Agreement) will be issued in permanent global form (a
"Global Senior Note"), and if issued as one or more Global Senior Notes, the
Depositary shall be The Depository Trust Company or such other depositary as any
officer of the Company may from time to time designate. Upon the creation of
Treasury Units or the recreation of Corporate Units, an appropriate annotation
shall be made on the Schedule of Increases and Decreases on the Global Senior
Notes held by the Depositary. Unless and until such Global Senior Note is
exchanged for Senior Notes in certificated form, Global Senior Notes may be
transferred, in whole but not in part, and any payments on the Senior Notes
shall be made, only to the Depositary or a nominee of the Depositary, or to a
successor Depositary selected or approved by the Company or to a nominee of such
successor Depositary.

         Section 2.05.  Interest. (a) The Senior Notes will bear interest
initially at the rate of 3.6% per year (the "Coupon Rate") from the original
date of issuance through and including the earlier of (i) the Maturity Date and
(ii) the day immediately preceding any Reset Effective Date. In the event of a
Successful Remarketing of the Senior Notes, the Coupon Rate will be reset by the
Remarketing Agent at the appropriate Reset Rate with effect from the related
Reset Effective Date, as set forth under Section 8.03. If the Coupon Rate is so
reset, the Senior Notes will bear interest at the Reset Rate from the related
Reset Effective Date until the principal thereof and interest thereon is paid or
duly made available for payment and shall bear interest, to the extent permitted
by law, compounded quarterly, on any overdue principal and payment of interest
at the Coupon Rate through and including the day immediately preceding the Reset
Effective Date and at the Reset Rate thereafter.

                                        7

<PAGE>

         (b)   Interest on the Senior Notes shall be payable quarterly in
arrears on February 16, May 16, August 16 and November 16 of each year (each, an
"Interest Payment Date"), commencing February 16, 2003, to the Person in whose
name such Senior Note, or any predecessor Senior Note, is registered at the
close of business on the Record Date for such Interest Payment Date. Interest on
the Senior Notes shall accrue from December 17, 2002.

         (c)   The amount of interest payable for any full quarterly period will
be computed on the basis of a 360-day year consisting of twelve 30-day months.
The amount of interest payable for any period shorter than a full quarterly
period for which interest is computed will be computed on the basis of a 30-day
month and, for any period less than a month, on the basis of the actual number
of days elapsed per 30-day month. In the event that any scheduled Interest
Payment Date falls on a day that is not a Business Day, then payment of interest
payable on such Interest Payment Date will be made on the next succeeding day
which is a Business Day (and without any interest or other payment in respect of
any such delay), except that, if such Business Day is in the next calendar year,
then such payment will be made on the preceding Business Day.

         Section 2.06.  No Defeasance. The provisions of Section 402 of the Base
Indenture shall not apply to the Senior Notes.

         Section 2.07.  No Sinking Fund. The Senior Notes are not entitled to
the benefit of any sinking fund.

         Section 2.08.  No Subordination. The Senior Notes are not Subordinate
Securities and the Subordination Provisions of Section 301(25) of the Base
Indenture shall not apply to the Senior Notes.

                                    ARTICLE 3
                         Redemption of the Senior Notes

         Section 3.01.  Special Event Redemption. If a Special Event shall occur
and be continuing, the Company may, at its option, redeem the Senior Notes in
whole, but not in part, on any Interest Payment Date prior to the earlier of the
date of a Successful Remarketing or the Purchase Contract Settlement Date, at a
price per Senior Note equal to the Redemption Price, payable on the date of
redemption (the "Special Event Redemption Date") to the Holders of the Senior
Notes registered at the close of business on the Record Date for such Interest
Payment Date. If the Company so elects to redeem the Senior Notes, the Company
shall appoint the Quotation Agent to assist the Company in determining the
Treasury

                                        8

<PAGE>

Portfolio Purchase Price. Notice of any Special Event Redemption will be mailed
by the Company (with a copy to the Trustee) at least 30 days but not more than
60 days before the Special Event Redemption Date to each registered Holder of
the Senior Notes at its registered address. In addition, the Company shall
notify the Collateral Agent in writing that a Special Event has occurred and
that the Company intends to redeem the Senior Notes on the Special Event
Redemption Date. Unless the Company defaults in the payment of the Redemption
Price, on and after the Special Event Redemption Date, (a) interest shall cease
to accrue on the Senior Notes, (b) the Senior Notes shall become due and payable
at the Redemption Price, and (c) the Senior Notes shall be void and all rights
of the Holders in respect of the Senior Notes shall terminate and lapse (other
than the right to receive the Redemption Price upon surrender of such Senior
Notes but without interest on such Redemption Price). Following the notice of a
Special Event Redemption, neither the Company nor the Trustee shall be required
to register the transfer of or exchange the Senior Notes to be redeemed.

         Section 3.02.  Redemption Procedures. On or prior to the Special Event
Redemption Date, the Company shall deposit with the Trustee immediately
available funds in an amount sufficient to pay, on the Special Event Redemption
Date, the aggregate Redemption Price for all outstanding Senior Notes. In
exchange for any Senior Notes surrendered for redemption on or after the Special
Event Redemption Date, the Trustee shall pay an amount equal to the Redemption
Price (a) to the Collateral Agent, in the case of Senior Notes that are included
in Corporate Units, which amount shall be applied by the Collateral Agent in
accordance with the terms of the Pledge Agreement, and (b) to the holders of the
Separate Senior Notes, in the case of Separate Senior Notes.

                                    ARTICLE 4
                               Form of Senior Note

         Section 4.01.  Form Of Senior Note. The Senior Notes and the Trustee's
Certificate of Authentication to be endorsed thereon are to be substantially in
the forms attached as Exhibit A hereto, with such changes therein as the
officers of the Company executing the Senior Notes (by manual or facsimile
signature) may approve, such approval to be conclusively evidenced by their
execution thereof.

                                    ARTICLE 5
                         Original Issue of Senior Notes

         Section 5.01.  Original Issue Of Senior Notes. Senior Notes in the
aggregate principal amount of $1,100,000,000 (or up to $1,250,000,000 to the

                                        9

<PAGE>

extent that the Underwriters' over-allotment option is exercised) may from time
to time, upon execution of this Supplemental Indenture, be executed by the
Company and delivered to the Trustee for authentication, and the Trustee shall
thereupon authenticate and deliver said Senior Notes to or upon the written
order of the Company pursuant to Section 303 of the Base Indenture without any
further action by the Company (other than as required by the Base Indenture).

                                    ARTICLE 6
                             Original Issue Discount

         Section 6.01.  Original Issue Discount. The Company shall file with the
Trustee promptly at the end of each calendar year (i) a written notice
specifying the amount of original issue discount (including daily rates and
accrual periods) accrued on Senior Notes that are Outstanding as of the end of
the year and (ii) such other specific information relating to such original
issue discount as may then be relevant under the Internal Revenue Code of 1986,
as amended from time to time.

                                    ARTICLE 7
                                  Miscellaneous

         Section 7.01.  Ratification Of Indenture. The Indenture, as
supplemented by this Supplemental Indenture, is in all respects ratified and
confirmed, and this Supplemental Indenture shall be deemed part of the Indenture
in the manner and to the extent herein and therein provided.

         Section 7.02.  Trustee Not Responsible For Recitals. The recitals
herein contained are made by the Company and not by the Trustee, and the Trustee
assumes no responsibility for the correctness thereof. The Trustee makes no
representation as to the validity or sufficiency of this Supplemental Indenture.

         Section 7.03.  New York Law To Govern. THIS SUPPLEMENTAL INDENTURE AND
EACH SENIOR NOTE SHALL BE DEEMED TO BE CONTRACTS MADE UNDER THE LAWS OF THE
STATE OF NEW YORK AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES
THEREOF.

         Section 7.04.  Separability. In case any one or more of the provisions
contained in this Supplemental Indenture or in the Senior Notes shall for any
reason be held to be invalid, illegal or unenforceable in any respect, then, to
the

                                       10

<PAGE>

extent permitted by law, such invalidity, illegality or unenforceability shall
not affect any other provisions of this Supplemental Indenture or of the Senior
Notes, but this Supplemental Indenture and the Senior Notes shall be construed
as if such invalid or illegal or unenforceable provision had never been
contained herein or therein.

         Section 7.05.  Counterparts. This Supplemental Indenture may be
executed in any number of counterparts each of which shall be an original, but
such counterparts shall together constitute but one and the same instrument.

                                    ARTICLE 8
                                   Remarketing

         Section 8.01.  Remarketing Procedures. (a) Unless a Special Event
Redemption or a Successful Remarketing has occurred prior to the applicable
Remarketing Date, the Company shall engage the Remarketing Agent pursuant to the
Remarketing Agreement for the Remarketing of the Senior Notes. The Company will
request, not later than seven nor more than 15 calendar days prior to the
applicable Remarketing Date, that the Depositary or its nominee notify the
Beneficial Owners or Depositary Participants holding Separate Senior Notes,
Corporate Units and Treasury Units of the procedures to be followed in the
applicable Remarketing.

         (b)   Each Holder of Separate Senior Notes may elect to have Separate
Senior Notes held by such Holder remarketed in any Remarketing. A Holder making
such an election must, pursuant to the Pledge Agreement, notify the Custodial
Agent and deliver such Separate Senior Notes to the Custodial Agent prior to
5:00 P.M. (New York City time) on or prior to the fifth Business Day immediately
preceding the applicable Remarketing Date (but no earlier than the Interest
Payment Date immediately preceding the applicable Remarketing Date). Any such
notice and delivery may not be conditioned upon the level at which the Reset
Rate is established in the Remarketing. Any such notice and delivery may be
withdrawn prior to 5:00 P.M. (New York City time) on or prior to the fifth
Business Day immediately preceding the applicable Remarketing Date in accordance
with the provisions set forth in the Pledge Agreement. Any such notice and
delivery not withdrawn by such time will be irrevocable with respect to such
Remarketing. Pursuant to Section 5.07(c) of the Pledge Agreement, promptly after
11:00 A.M., New York City time, on the Business Day immediately preceding the
applicable Remarketing Date, the Custodial Agent, based on the notices and
deliveries received by it prior to such time, shall notify the Remarketing Agent
of the principal amount of Separate Senior Notes to be tendered for remarketing
and shall cause such Separate Senior Notes to be

                                       11

<PAGE>

presented to the Remarketing Agent. Under Section 5.02 of the Purchase Contract
Agreement, Senior Notes that are components of Corporate Units will be deemed
tendered for Remarketing and will be remarketed in accordance with the terms of
the Remarketing Agreement.

         (c)   The right of each Holder of Senior Notes that are included in
Corporate Units to have such Senior Notes, and each Holder of Separate Senior
Notes to have any Separate Senior Notes (together, the "Remarketed Senior
Notes"), remarketed and sold on any Remarketing Date shall be limited to the
extent that (i) the Remarketing Agent conducts a Remarketing pursuant to the
terms of the Remarketing Agreement, (ii) a Special Event Redemption has not
occurred prior to such Remarketing Date, (iii) the Remarketing Agent is able to
find a purchaser or purchasers for Remarketed Senior Notes at the Remarketing
Price or the Final Remarketing Price, as the case may be, and (iv) the purchaser
or purchasers deliver the purchase price therefor to the Remarketing Agent as
and when required.

         (d)   Neither the Trustee, the Company nor the Remarketing Agent shall
be obligated in any case to provide funds to make payment upon tender of Senior
Notes for remarketing.

         Section 8.02.  Remarketing. (a) Unless a Special Event Redemption has
occurred prior to the Initial Remarketing Date, on the Initial Remarketing Date,
the Remarketing Agent shall, pursuant and subject to the terms of the
Remarketing Agreement, use its reasonable efforts to remarket the Remarketed
Senior Notes at a price (the "Remarketing Price") equal to approximately 100.25%
of the sum of the Treasury Portfolio Purchase Price and the Separate Senior Note
Purchase Price.

         (b)   In the case of a Failed Initial Remarketing and unless a Special
Event Redemption has occurred prior to the Final Remarketing Date, on the Final
Remarketing Date, the Remarketing Agent shall use its reasonable efforts to
remarket the Remarketed Senior Notes at a price (the "Final Remarketing Price")
equal to approximately 100.25% of the aggregate principal amount of the
Remarketed Senior Notes. It is understood and agreed that Remarketing on any
Remarketing Date will be considered successful and no further attempts will be
made if the resulting proceeds are at least 100.25% of the sum of the Treasury
Portfolio Purchase Price and the Separate Senior Note Purchase Price, in the
case of the Initial Remarketing, or 100.25% of the aggregate principal amount of
the Remarketed Senior Notes in the case of the Final Remarketing.

         Section 8.03.  Reset Rate. (a) In connection with each Remarketing, the
Remarketing Agent shall determine the Reset Rate (rounded to the nearest
one-thousandth (0.001) of one percent per annum) that the Remarketed Senior
Notes

                                       12

<PAGE>

should bear in order to have an aggregate market value equal to the Remarketing
Price or the Final Remarketing Price, as the case may be, and that in the sole
discretion of the Remarketing Agent will enable it to remarket all of the
Remarketed Senior Notes at the Remarketing Price or Final Remarketing Price, as
the case may be, in such Remarketing.

         (b)   Anything herein to the contrary notwithstanding, the Reset Rate
shall in no event exceed the maximum rate permitted by applicable law and the
Remarketing Agent shall have no obligation to determine whether there is any
limitation under applicable law on the Reset Rate or, if there is any such
limitation, the maximum permissible Reset Rate on the Senior Notes and they
shall rely solely upon written notice from the Company (which the Company agrees
to provide prior to the eighth Business Day before the Initial Remarketing Date)
as to whether or not there is any such limitation and, if so, the maximum
permissible Reset Rate.

         (c)   In the event of a Failed Remarketing or if no Senior Notes are
included in Corporate Units and none of the holders of the Separate Senior Notes
elect to have their Senior Notes remarketed in any Remarketing, the applicable
interest rate on the Senior Notes will not be reset and will continue to be the
Coupon Rate.

         (d)   In the event of a Successful Remarketing, the Coupon Rate shall
be reset at the Reset Rate as determined by the Remarketing Agent under the
Remarketing Agreement.

         Section 8.04.  Failed Remarketing. (a) If, by 4:00 p.m. (New York City
time) on any Remarketing Date, the Remarketing Agent is unable to remarket all
of the Remarketed Senior Notes at the Remarketing Price or the Final Remarketing
Price, as the case may be, pursuant to the terms and conditions hereof, a Failed
Remarketing shall be deemed to have occurred, and the Remarketing Agent shall so
advise, by telephone the Depositary, the Purchase Contract Agent and the
Company. Promptly following any Failed Remarketing, the Remarketing Agent shall
return Separate Senior Notes submitted for remarketing, if any, to the Custodial
Agent for distribution to the appropriate Holders.

         (b)   The Company shall cause a notice of such Failed Remarketing to be
published in a daily newspaper in the English language of general circulation in
the City of New York, which is expected to be The Wall Street Journal.

         Section 8.05.  Put Right. (a) If there has not been a Successful
Remarketing prior to the Purchase Contract Settlement Date, Holders of Separate
Senior Notes and Holders of Senior Notes that are a component of Corporate

                                       13

<PAGE>

Units will, subject to this Section 8.05, have the right (the "Put Right") to
require the Company to purchase their Senior Notes, on the Purchase Contract
Settlement Date, at a price per Senior Note equal to $50.00 plus accrued and
unpaid interest to but excluding the Purchase Contract Settlement Date (the "Put
Price").

         (b)   The Put Right of Holders of Senior Notes that are part of
Corporate Units will be automatically exercised unless such Holders (1) prior to
11:00 a.m., New York City time, on the second Business Day immediately preceding
the Purchase Contract Settlement Date, provide written notice to the Purchase
Contract Agent of their intention to settle the related Purchase Contract with
separate cash, and (2) on or prior to the Business Day immediately preceding the
Purchase Contract Settlement Date, deliver to the Collateral Agent $50 in cash
per Purchase Contract, in each case pursuant to the Purchase Contract Agreement.
Unless a Corporate Unit holder has settled the related Purchase Contract with
separate cash on or prior to the Purchase Contract Settlement Date, the Company,
on the Purchase Contract Settlement Date, shall cause the Put Price to be
deposited in the Collateral Account and the Collateral Agent shall cause the
Securities Intermediary to remit the Purchase Price for the shares of Common
Stock to be issued under the related Purchase Contract from a portion of the
Proceeds of the Put Right to the Company in full satisfaction of such Holder's
obligations under the related Purchase Contract. Any remaining amount of the Put
Price following satisfaction of the related Purchase Contract will be paid to
such Corporate Unit holder. If the Company shall fail to pay the Put Price on
the Purchase Contract Settlement Date in accordance with the foregoing, the
Company shall be deemed to have netted its obligation to pay the Put Price
against the obligation of a Holder of a Senior Note that is a component of a
Corporate Unit to pay the Purchase Price under the related Purchase Contract on
the Purchase Contract Settlement Date.

         (c)   The Put Right of a Holder of a Separate Senior Note shall only be
exercisable upon delivery of a notice to the Trustee by such Holder on or prior
to the second Business Day prior to the Purchase Contract Settlement Date. On or
prior to the Purchase Contract Settlement Date, the Company shall deposit with
the Trustee immediately available funds in an amount sufficient to pay, on the
Purchase Contract Settlement Date, the aggregate Put Price of all Separate
Senior Notes with respect to which a Holder has exercised a Put Right. In
exchange for any Separate Senior Notes surrendered pursuant to the Put Right,
the Trustee shall then distribute such amount to the Holders of such Separate
Senior Notes.

         Section 8.06.  Additional Event of Default. In addition to the events
listed as Events of Default in Section 501 of the Base Indenture, it shall be an
additional Event of Default with respect to the Senior Notes, if the Company
shall not have satisfied its obligation to pay the Put Price when due in
accordance with

                                       14

<PAGE>

Section 8.05 (either by payment of the Put Price to the Trustee when due, by
deposit of the Put Price in the Collateral Account when due or by netting the
Put Price against a Holder's obligation under the related Purchase Contract if a
Senior Note is a component of a Corporate Unit).

                                    ARTICLE 9
                                  Tax Treatment

         Section 9.01.  Tax Treatment. The Company agrees, and by acceptance of
a Corporate Unit, each holder of a Corporate Unit will be deemed to have agreed
(1) for United States federal, state and local income and franchise tax purposes
to treat the acquisition of a Corporate Unit as the acquisition of the Senior
Note and the Purchase Contract constituting the Corporate Unit and (2) to treat
the Senior Note as indebtedness for United States federal, state and local
income and franchise tax purposes. A Holder of Senior Notes may obtain the
comparable yield and projected payment schedule for the Senior Notes, determined
by the Company pursuant to Treas. Reg. Sec. 1.1275-4, by submitting a written
request for such information to the Company at the following address: Baxter
International Inc., One Baxter Parkway, Deerfield, Illinois 60015, Attention:
Treasurer.

                                       15

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed, as of the day and year first written above.

                                      BAXTER INTERNATIONAL INC.

                                      By:  _____________________________________
                                           Name:
                                           Title:

Attest:

________________________
Name:
Title:
                                      BANK ONE TRUST COMPANY, N.A., as Trustee

                                      By:  _____________________________________
                                           Name:
                                           Title:

Attest:

________________________
Name:
Title:

________________________
Name:
Title:

<PAGE>

                                                                       EXHIBIT A

[IF THIS SENIOR NOTE IS TO BE A GLOBAL SECURITY, INSERT:] THIS SENIOR NOTE IS A
GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY OR A NOMINEE OF THE
DEPOSITORY TRUST COMPANY. THIS SENIOR NOTE IS EXCHANGEABLE FOR SECURITIES
REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY TRUST COMPANY OR
ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST COMPANY TO A
NOMINEE OF THE DEPOSITORY TRUST COMPANY OR BY A NOMINEE OF THE DEPOSITORY TRUST
COMPANY TO THE DEPOSITORY TRUST COMPANY OR ANOTHER NOMINEE OF THE DEPOSITORY
TRUST COMPANY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                            BAXTER INTERNATIONAL INC.

3.6% Senior Notes due February 16, 2008                       No.
$______________                                             CUSIP No. 07813 60 4

BAXTER INTERNATIONAL INC., a corporation organized and existing under the laws
of Delaware (hereinafter called the "Company", which term includes any successor
corporation under the Indenture hereinafter referred to), for value received,
hereby promises to pay to___________, or registered assigns, the principal sum
of up to ___________($__________), as set forth in the Schedule of Increases or
Decreases In Senior Note attached hereto, on February 16, 2008 (such date is
hereinafter referred to as the "Maturity Date"), and to pay interest

<PAGE>

thereon from December 17, 2002 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, quarterly in arrears on
February 16, May 16, August 16 and November 16 of each year, commencing February
16, 2003, at the rate of 3.6% per annum through and including the day
immediately preceding the Reset Effective Date, if any, and thereafter at the
Reset Rate, if any, on the basis of a 360-day year consisting of twelve 30-day
months, until the principal hereof is paid or duly provided for or made
available for payment, and (to the extent that the payment of such interest
shall be legally enforceable) to pay interest, compounded quarterly, at the rate
of 3.6% per annum on any overdue principal and payment of interest through and
including the day immediately preceding the Reset Effective Date, if any, and
thereafter at the Reset Rate, if any. The amount of interest payable for any
period shorter than a full quarterly period for which interest is computed will
be computed on the basis of a 30-day month and, for any period less than a
month, on the basis of the actual number of days elapsed per 30-day month. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Senior Note (or one or more Predecessor Senior Notes) is registered at
the close of business on the Record Date for such Interest Payment Date.

Payment of the principal of and interest on this Senior Note will be made at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, The City of New York, which shall initially be the Corporate Trust
Office of the Trustee, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts; provided, however, that payment of interest may be made at the option of
the Company by check mailed to the Holder at such address as shall appear in the
Security Register or by wire transfer to an account appropriately designated by
the Holder entitled to payment.

Reference is hereby made to the further provisions of this Senior Note set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

Unless the certificate of authentication hereon has been executed by the Trustee
referred to on the reverse hereof by manual signature, this Senior Note shall
not be entitled to any benefit under the Indenture or be valid or obligatory for
any purpose.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                                                BAXTER INTERNATIONAL INC.

                                                By: ________________________
                                                    Name:
                                                    Title:

Attest:

By: ______________________
    Name:
    Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Senior Notes referred to in the within mentioned Indenture.

Dated: _____________

BANK ONE TRUST COMPANY, N.A.,
as Trustee

By:    __________________
       Authorized Officer

<PAGE>

                         FORM OF REVERSE OF SENIOR NOTE

         This Senior Note is one of a duly authorized issue of securities of the
Company (herein called the "Senior Notes"), issued and to be issued in one or
more series under an Indenture, dated as of April 26, 2002, between the Company
and Bank One Trust Company, N.A., as Trustee, (herein called the "Trustee",
which term includes any successor trustee)(the "Base Indenture"), as
supplemented by the Supplemental Indenture No. 1 between the Company and the
Trustee (the "Supplemental Indenture" and together with the Base Indenture, the
"Indenture"), to which Indenture reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Senior Notes and of the terms
upon which the Senior Notes are, and are to be, authenticated and delivered.
This Senior Note is one of the series designated on the face hereof, limited in
aggregate principal amount to $[___________].

         If a Special Event shall occur and be continuing, the Company may, at
its option, redeem the Senior Notes of this series in whole, but not in part, on
any Interest Payment Date prior to the earlier of the date of a Successful
Remarketing or the Purchase Contract Settlement Date, at a price per Senior Note
equal to the Redemption Price as set forth in the Indenture.

         If there has not been a Successful Remarketing prior to the Purchase
Contract Settlement Date, the holders of Senior Notes will have the right to
require the Company to purchase their Senior Notes on the Purchase Contract
Settlement Date, all as more fully described in the Supplemental Indenture

         The Senior Notes are not entitled to the benefit of any sinking fund
and will not be subject to defeasance.

         If an Event of Default with respect to Senior Notes of this series
shall occur and be continuing, the principal of the Senior Notes of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Senior Notes at any time by the
Company and the Trustee with the consent of the Holders of a majority in
principal amount of the Senior Notes at the time Outstanding. The Indenture also
contains provisions permitting the Holders of specified percentages in principal
amount of the Senior Notes at the time Outstanding, on behalf of the Holders of
all Senior Notes, to waive compliance by the Company with certain provisions of

<PAGE>

the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Senior Note shall
be conclusive and binding upon such Holder and upon all future Holders of this
Senior Note and of any Senior Note issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Senior Note.

         No reference herein to the Indenture and no provision of this Senior
Note or of the Indenture shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of and interest on
this Senior Note at the times, place and rate, and in the coin or currency,
herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Senior Note is registrable in the Securities
Register, upon surrender of this Senior Note for registration of transfer at the
office or agency of the Company in any place where the principal of and interest
on this Senior Note are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Securities
Registrar duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Senior Notes of this series, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.

         The Senior Notes of this series are issuable only in registered form
without coupons in denominations of $50 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Senior Notes of this series are exchangeable for a like aggregate principal
amount of Senior Notes of this series of a different authorized denomination, as
requested by the Holder surrendering the same.

         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

         Prior to due presentment of this Senior Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Senior Note is registered as the owner
hereof for all purposes, whether or not this Senior Note be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

         All terms used in this Senior Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

<PAGE>

         The Company agrees, and by acceptance of a Corporate Unit, each holder
of a Corporate Unit will be deemed to have agreed (1) for United States federal,
state and local income and franchise tax purposes to treat the acquisition of a
Corporate Unit as the acquisition of the Senior Note and the Purchase Contract
constituting the Corporate Unit and (2) to treat the Senior Note as indebtedness
for United States federal, state and local income and franchise tax purposes. A
Holder of Senior Notes may obtain the comparable yield and projected payment
schedule for the Senior Notes, determined by the Company pursuant to Treas. Reg.
Sec. 1.1275-4, by submitting a written request for it to the Company at the
following address: Baxter International Inc., One Baxter Parkway, Deerfield,
Illinois 60015; Attention: Treasurer.

                                       R-1

<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Senior Note to:

_____________________________________________________________________________

_____________________________________________________________________________

(Insert assignee's social security or tax identification number)

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

(Insert address and zip code of assignee)

and irrevocably appoints

_____________________________________________________________________________

_____________________________________________________________________________

_____________________________________________________________________________

agent to transfer this Senior Note on the books of the Company. The agent may
substitute another to act for him or her.

Date: _____________

                                            Signature:

                                            _______________________

                                            Signature Guarantee: _______________

(Sign exactly as your name appears on the other side of this Senior Note)

<PAGE>

                               SIGNATURE GUARANTEE

Signatures must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program ("STAMP") or such
other "signature guarantee program" as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.

By: _____________________
    Name
    Title:

                                                ________________________________
                                                as Trustee

                                                By: ____________________________
                                                    Name
                                                    Title:

Attest:

By: ____________________________
    Name
    Title:

<PAGE>

                SCHEDULE OF INCREASES OR DECREASES IN SENIOR NOTE

The following increases or decreases in a part of this Senior Note have been
made:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------
                         Amount of          Amount of       Principal amount
                        decrease in        increase in       of this Senior
                      principal amount   principal amount    Note following       Signature of
                       of this Senior     of this Senior    such decrease (or      authorized
        Date                Note               Note             increase)      officer of Trustee
--------------------------------------------------------------------------------------------------
<S>                   <C>                <C>                <C>                <C>
--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------
</TABLE><PAGE>
                                                                    EXHIBIT 4.15

                               BENDIGO MINING N.L.

                         HARMONY GOLD MINING COMPANY LTD

                     SHARE AND OPTION SUBSCRIPTION AGREEMENT

                                 MINTER ELLISON
                                     Lawyers
                                  Rialto Towers
                               525 Collins Street
                               MELBOURNE VIC 3000
                                  Ph: 8608 2000
                                 Fax: 8608 1000
                               SLMD MJB 30-3561330

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                     <C>
1.  DEFINITIONS ........................................................ 1

2.  CONDITIONS ......................................................... 7

3.  SUBSCRIPTIONS FOR SHARES ........................................... 8

4.  WARRANTIES ......................................................... 8

5.  FURTHER RIGHTS .....................................................11

6.  APPROVAL OF BENDIGO SHAREHOLDERS ...................................12

7.  PARTICIPATION RIGHT ................................................13

8.  RIGHT OF FIRST REFUSAL TO UNDERWRITE ...............................17

9.  GRANT OF OPTIONS ON PRO RATA ISSUE .................................19

10. GUARANTEE ..........................................................20

11. DIVIDEND POLICY ....................................................20

12. PUBLICITY ..........................................................20

13. TERMINATION ........................................................21

14. NOTICE .............................................................21

15. FURTHER ACTION .....................................................22

16. DURATION OF PROVISIONS .............................................22

17. SEVERABILITY .......................................................22

18. COSTS ..............................................................23

19. STAMP DUTY AND OTHER TAXES .........................................23

20. WAIVER .............................................................23

21. COUNTERPARTS .......................................................23

22. ENTIRE AGREEMENT ...................................................23

23. AMENDMENT ..........................................................24

24. ASSIGNMENT .........................................................24

25. GOVERNING LAW AND JURISDICTION .....................................24

26. INTERPRETATION .....................................................24

SCHEDULE 1 .............................................................27

SCHEDULE 2 .............................................................28
</Table>

<PAGE>
                     SHARE AND OPTION SUBSCRIPTION AGREEMENT

AGREEMENT dated                                                             2001

BETWEEN         BENDIGO MINING N.L. ACN 005 674 073 of 66 Ham Street, Kangaroo
                Flat, Victoria 3555, Australia ('BENDIGO')

AND             HARMONY GOLD MINING COMPANY LTD, a company registered in South
                Africa with number 1905/038232/06 of PO Box 2, Randfontein 1760,
                South Africa ('HARMONY')

RECITAL

Harmony has agreed to subscribe, or to procure that a Subscriber other than
Harmony agrees to subscribe, for Shares and Options in Bendigo on the terms and
conditions of this agreement.

AGREEMENT

1.       DEFINITIONS

         In this agreement:

         'ACCEPTANCE PROPORTION' means either, in the event of:

         (a)      a Relevant Issue, the number derived by the Accepted Top-Up
                  Shares by the number of Top-Up Shares set out in the Offer; or

         (b)      a Relevant PRI, the number derived by dividing the Accepted
                  Entitlement by the Offered Entitlement;

         'ACCEPTED ENTITLEMENT' has the meaning set out in CLAUSE 9.3;

         'ACCEPTED TOP-UP SHARES' has the meaning set out in CLAUSE 7.3(a),
         subject to any adjustment in accordance with CLAUSE 7.3(d);

         'ACTUAL CAPITAL BASE' means the number of issued Shares from time to
         time;

         'ADDITIONAL OPTIONS' means the number of Options (if any) to be issued
         to the Subscriber after a Relevant PRI in accordance with CLAUSE 9,
         being the number equal to T3 (where T3 is rounded down to the nearest
         whole number), where:

                  T3 = [[Z x N / C] - S] x AP

                  where:

                  Z =      the Securityholding immediately prior to an issue of
                           equity securities the subject of that Relevant PRI;

                  N =      the number of Shares issued or the number of unissued
                           Shares the subject of convertible securities issued
                           to person other than the Harmony Entities under that
                           Relevant PRI;

                  C =      the Third Party Diluted Capital Base immediately
                           before an issue of equity securities under that
                           Relevant PRI;

                  S =      the Offered Entitlement under the Relevant PRI;

<PAGE>
                                       2

                  AP =     the Acceptance Proportion in respect of that Relevant
                           PRI,

         subject to if T3 is zero or a negative number, T3 shall equal zero and
         no Additional Options shall be granted as a result;

         'ANNOUNCEMENT' has the meaning set out in CLAUSE 12;

         'APPLICATION FORM' means the application form for Subscription Shares
         and Subscriber Options attached to this agreement as ANNEXURE A;

         'ASIC' means the Australian Securities and Investments Commission;

         'ASX' means Australian Stock Exchange Limited;

         'BOARD' means the board of directors of Bendigo from time to time;

         'BUSINESS DAY' means a day on which Australian banks (as defined in the
         Corporations Act 2001 (Cth)) are open for general banking business in
         Victoria, excluding Saturdays and Sundays;

         'CLOSING DATE' has the meaning set out in CLAUSE 7.2;

         'COMPLETION' means completion of the subscription for and issue of the
         Subscription Shares and the grant of the Subscriber Options in
         accordance with CLAUSE 3;

         'COMPLETION DATE' means the date on which Completion occurs, being the
         date 3 Business Days after satisfaction or waiver (to the extent
         permitted) of all of the Conditions, or such other date as the parties
         agree in writing;

         'COMPLETION END DATE' has the meanings set out in CLAUSE 7.4;

         'CONDITION' means a condition set out in the second column of the table
         in SCHEDULE 1;

         'CONFIDENTIALITY AGREEMENT' means a confidentiality agreement dated 13
         August 2001 between Bendigo and Harmony;

         'CONVERTIBLE SECURITY' has the same meaning as in the Listing Rules;

         'DECLINED SECURITIES' has the meaning set out in CLAUSE 7.7;

         'DEFAULTING PARTY' has the meaning set out in CLAUSE 13.1;

         'ENCUMBRANCE' means any mortgage, charge, pledge, lien, encumbrance,
         assignment, hypothecation, security interest, title retention,
         preferential right, trust arrangement, contractual right of set-off or
         any other security agreement of arrangement in favour of any person;

         'EQUITY SECURITY' has the same meaning as in the Listing Rules;

         'EXPIRY DATE' means 31 December 2003;

         'FURTHER SHARES' means Shares issued after the date of this agreement;

         'HARMONY ENTITIES' means the Harmony Group and all Related Bodies
         Corporate of Harmony and all entities controlled by Harmony (and
         control for these purposes shall

<PAGE>

                                        3

         have the meaning given to that term in section 9 of the Corporations
         Act 2001 from time to time) from time to time;

         'HARMONY GROUP' means Harmony and each entity which is wholly owned
         subsidiary of Harmony at the date of:

         (a)      issue of any Subscription Shares, Subscriber Options, Top-Up
                  Shares, Top-Up Options, Additional Options or other Further
                  Shares or New Securities under this agreement; or

         (b)      transfer of any Options, pursuant to the terms and conditions
                  of issue of the Options,

         to that entity;

         'INDEPENDENT EXPERT' has the meaning set out in CLAUSE 6.1;

         'ISSUE PRICE' has the meaning set out in CLAUSE 7.2;

         'LISTING RULES' means the listing rules of ASX from time to time;

         'MARKET PRICE' means the market price of the Shares from time to time,
         as quoted on the market operated by ASX;

         'MATERIAL ADVERSE CHANGE' means a change outside the ordinary course of
         Bendigo's business or operations which has an adverse effect on the
         business, financial condition or operations, or arrangements with key
         employees, of Bendigo and has a material and sustained adverse affect
         on the Market Price;

         'MEETING' has the meaning set out in CLAUSE 6.1;

         'NEW BENDIGO PROJECT' means Bendigo's project to explore for and mine
         gold from its tenements at Bendigo, Victoria;

         'NEW SECURITIES' means equity securities (other than Shares) issued
         after the date of this agreement;

         'OFFER' has the meaning set out in CLAUSE 7.2;

         'OFFERED ENTITLEMENT' has the meaning set out in CLAUSE 9.3;

         'OPTION' means an option to acquire by way of issue and allotment a
         Share, such option to be granted on the terms and conditions set out in
         SCHEDULE 2;

         'OPTIONHOLDING' means the number of then outstanding Options held by
         the Harmony Group from time to time;

         'PERCENTAGE HOLDING' means the Shareholding expressed as a percentage
         of the Actual Capital Base and denoted by A, where:

                  A =      B/D x 100

                  B =      the Shareholding at that time;

                  D =      the Actual Capital Base at that time;

<PAGE>
                                        4

         'PEER REVIEW PANEL' means a panel of experts that review aspects of the
         business carried on by Bendigo and report the results of their review
         directly to the managing director of Bendigo;

         'PRESCRIBED OCCURRENCE' means:

         (a)      Bendigo converting all or any of its shares into a larger or
                  smaller number of shares;

         (b)      Bendigo resolving to reduce its share capital in any way;

         (c)      Bendigo:

                  (i)      entering into a buy-back agreement; or

                  (ii)     resolving to approve the terms of a buy-back
                           agreement under section 257C or 257D of the
                           Corporations Act 2001;

         (d)      Bendigo making an issue of, or granting an option to subscribe
                  for, any of its shares, or agreeing to make such an issue or
                  grant such an option, except the issue or grant, or agreement
                  to issue or grant, of:

                  (i)      Shares upon the exercise of director or employee
                           options currently on issue or issued pursuant to
                           subparagraphs (iii) or (iv) below;

                  (ii)     Shares to consultants or directors of Bendigo in lieu
                           of fees or other remuneration, as approved by the
                           Board from time to time;

                  (iii)    Shares and options the subject of resolutions to be
                           proposed at Bendigo's next annual general meeting
                           after the date of this agreement;

                  (iv)     options to participants in Bendigo's employee
                           incentive schemes (in existence at the date of this
                           agreement), as approved by the Board from time to
                           time;

                  (v)      Shares on conversion of convertible securities
                           currently on issue, including those to be issued
                           pursuant to the UniSuper Deed; and

                  (vi)     without limiting subparagraph (v) above, Shares that
                           may be issued in the manner or as contemplated by the
                           UniSuper Deed.

         (e)      Bendigo issuing, or agreeing to issue, convertible notes;

         (f)      Bendigo disposing, or agreeing to dispose, of the whole, or a
                  substantial part, of its business or property;

         (g)      Bendigo charging, or agreeing to charge, the whole, or a
                  substantial part, of its business or property, other than in
                  the ordinary course of Bendigo's business;

         (h)      Bendigo resolving that it be wound up;

         (i)      the appointment of a liquidator or provisional liquidator to
                  Bendigo;

         (j)      the making of an order by a court for the winding up of
                  Bendigo;

         (k)      an administrator of Bendigo, being appointed under section
                  436A, 436B or 436C of the Corporations Act 2001;

<PAGE>

                                        5

         (l)      Bendigo executing a deed of company arrangement; or

         (m)      the appointment of a receiver, or a receiver and manager, in
                  relation to the whole, or a substantial part, of the property
                  of Bendigo;

         'PRO RATA ISSUE' means an issue of equity securities in Bendigo which
         has been offered on a pro rata basis to all holders of Shares
         (including a bonus issue), other than holders that Bendigo is not
         required by the Listing Rules to offer equity securities for issue on a
         pro rata basis;

         'RELATED BODY CORPORATE' has the meaning given in section 9 of the
         Corporations Act 2001;

         'RELEVANT ISSUE' has the meaning set out in CLAUSE 7.2;

         'RELEVANT PRI' has the meaning set out in CLAUSE 9.1;

         'REPORT' has the meaning set out in CLAUSE 6.1;

         'SECURITYHOLDING' means the sum of Shareholding and the number of
         unissued Shares the subject of convertible securities held by the
         Harmony Entities from time to time;

         'SHARE' means a fully paid ordinary share in the capital of Bendigo;

         'SHAREHOLDING' means the number of issued Shares held by the Harmony
         Entities;

         'SUBSCRIBER' means the member of the Harmony Group nominated by Harmony
         to Bendigo in writing from time to time as the recipient of any
         Subscription Shares, Subscriber Options, Top-Up Shares, Top-Up Options,
         Additional Options or other Further Shares or New Securities issued
         pursuant to this agreement, such nomination to be valid until replaced
         by a further notice of nomination;

         'SUBSCRIBER OPTIONS' means 360,000,000 Options granted to the
         Subscriber at Completion;

         'SUBSCRIBER UNDERWRITTEN SHARES' has the meaning set out in CLAUSE 8.3;

         'SUBSCRIPTION PRICE' means AUD50,000,000 (AUD0.17 per Subscription
         Share), being the total amount payable by the Subscriber for the
         Subscription Shares;

         'SUBSCRIPTION SHARES' means 294,117,647 Shares subscribed for by the
         Subscriber at Completion;

         'TAX' means all forms of taxes, duties, imposts, charges, withholdings,
         rates, levies or other governmental impositions of whatever nature and
         by whatever authority imposed, assessed or charged together with all
         costs, charges, interest, penalties, fines, expenses and other
         additional statutory charges, incidental or related to the imposition
         and 'TAXATION' has a corresponding meaning;

         'TERMINATION DATE' means 31 December 2001 or such other date as the
         parties may agree in writing;

<PAGE>
                                        6

         'THIRD PARTY DILUTED CAPITAL BASE' means the diluted capital base of
         Bendigo from time to time held by persons other than the Harmony
         Entities, being equal to the number derived from the sum of the number
         of issued Shares held by persons other than the Harmony Entities at
         that time and the number of unissued Shares the subject of convertible
         securities on issue in Bendigo held by persons other than the Harmony
         Entities at that time;

         'TOP-UP OPTIONS' means the number of Options (if any) to be issued to
         the Subscriber after an issue of Further Shares the subject of a
         Relevant Issue in accordance with CLAUSE 7, being the number equal to
         T2 (where T2 is rounded down to the nearest whole number), where:

                  T2 = [ [Z x N / C] - S ] x AP

                  where:

                  Z =      the Securityholding immediately prior to an issue of
                           the Further Shares the subject of that Relevant
                           Issue;

                  N =      the number of Further Shares issued to persons other
                           than the Subscriber under that Relevant Issue;

                  C =      the Third Party Diluted Capital Base immediately
                           before an issue of Further Shares under that Relevant
                           Issue;

                  S =      the number of Top-Up Shares offered to the Subscriber
                           under the Relevant Issue;

                  AP =     the Acceptance Proportion in respect of that Relevant
                           Issue;

         'TOP-UP SHARES' means the Further Shares to be offered to the
         Subscriber at the time of a Relevant Issue, being the number equal to
         T1 (rounded down to the nearest whole number), calculated in accordance
         with the following formula (subject to any adjustment made in
         accordance with CLAUSE 7.3(d)):

         T1 = S x N / C

         where:

         S =      the Shareholding at the time of the Relevant issue;

         C =      the number of issued Shares held by persons other than the
                  Harmony Entities at the time of the Relevant Issue;

         N =      the total number of Shares being offered to a person other
                  than the Subscriber under the Relevant Issue;

         'UNDERWRITING NOTICE' has the meaning set out in CLAUSE 8.2;

         'UNDERWRITING TERMS' has the meaning set out in CLAUSE 8.2;

         'UNDERWRITTEN ISSUE' has the meaning set out in CLAUSE 8.1;

         'UNDERWRITTEN SHARES' has the meaning set out in CLAUSE 8.2;

<PAGE>
                                        7

         'UNISUPER DEED' means the convertible note deed dated 24 April 2001
         between Bendigo and UniSuper Limited; and

         'WARRANTY' has the meaning set out in CLAUSE 4.3.

2.       CONDITIONS

2.1      CONDITIONS

         Completion must not occur until all of the Conditions are fulfilled or
         waived (to the extent permitted).

2.2      WAIVER OF CONDITIONS

         A Condition may only be waived in writing by agreement between the
         parties and will be effective only to the extent specifically set out
         in that waiver, except that no waiver of a Condition which is contrary
         to law or the Listing Rules is valid.

2.3      CONDUCT OF THE PARTIES

         Each party must use all reasonable efforts within its own capacity to
         ensure that each Condition is fulfilled before 5.00 pm on the
         Termination Date.

2.4      CERTAIN NOTICES

         If, at any time before Completion, a party becomes aware of the
         occurrence of any event which:

         (a)      constitutes a Prescribed Occurrence which is not in accordance
                  with or contemplated by this agreement;

         (b)      in the opinion of the party acting reasonably in all the
                  circumstances is likely to result in:

                  (i)      a Condition being unable to be satisfied prior to the
                           Termination Date;

                  (ii)     a representation or warranty provided in this
                           agreement to be materially false at Completion;

                  (iii)    a Prescribed Occurrence which is not in accordance
                           with or contemplated by this agreement; or

                  (iv)     a Material Adverse Change,

         that party must immediately give written notice to the other party of
         that event.

2.5      TERMINATION

         If Completion has not occurred on or prior to 5 pm on the Termination
         Date, or such later date as agreed between the parties in writing,
         either party may by notice in writing terminate this agreement.

<PAGE>
                                        8

2.6      ACTION ON TERMINATION

         On termination of this Agreement under CLAUSE 2.5, CLAUSE 13 applies.

3.       SUBSCRIPTION FOR SHARES

3.1      ACTIONS ON COMPLETION

         Subject to the satisfaction or waiver of all Conditions, on the
         Completion Date Harmony must procure that the Subscriber:

         (a)      gives a completed Application Form for the Subscription Shares
                  and Subscriber Options; and

         (b)      pays (in cleared funds) the Subscription Price,

         to Bendigo.

3.2      ACTIONS BY BENDIGO

         Subject to the satisfaction or waiver of all Conditions and the
         completion by Harmony and the Subscriber of their obligations under
         CLAUSE 3.1, Bendigo must:

         (a)      issue the Subscription Shares;

         (b)      issue a holding statement for the Subscription Shares;

         (c)      grant the Subscriber Options; and

         (d)      issue an option certificate for the Subscriber Options,

         to the Subscriber, and as soon as practicable thereafter, make
         application for the Subscription Shares to be granted official
         quotation on ASX.

3.3      CONDITIONS OF ISSUE

         The Subscription Shares and Subscriber Options will be issued subject
         to Bendigo's constitution, the Corporations Act 2001 and the Listing
         Rules. Harmony acknowledges that the Subscriber Options will not be
         listed for quotation on any stock or securities exchange.

3.4      CONFIDENTIALITY AGREEMENT

         The parties agree that, with effect on and from Completion, the
         Confidentiality Agreement shall, by mutual agreement, terminate,
         subject only to any accrued rights of a party arising from the
         Confidentiality Agreement.

4.       WARRANTIES

4.1      MUTUAL WARRANTIES

         Each party warrants to each other party, at the date of this agreement,
         that:

         (a)      it is a corporation validly existing under the laws of its
                  place of incorporation;

<PAGE>
                                        9

         (b)      it has the power and authority to enter into and perform its
                  obligations under this agreement;

         (c)      the execution, delivery and performance of this agreement by
                  it will constitute legal, valid and binding obligations of it,
                  enforceable in accordance with its terms;

         (d)      no meeting has been convened, resolution proposed, application
                  made, petition presented or order made for the winding up of
                  it and no receiver, receiver and manager, provisional
                  liquidator, liquidator or other officer of a court has been
                  appointed in relation to any of its assets and no mortgagee
                  has taken or attempted or indicated in any manner any
                  intention to take possession of any of its assets; and

         (e)      it has taken all necessary corporate action to authorise entry
                  into this agreement and has taken or will take all necessary
                  corporate action to authorise its performance of this
                  agreement and to carry out its obligations under this
                  agreement;

         (f)      the execution, delivery and performance of this agreement by
                  it will not violate:

                  (i)      any legislation or rule of law or regulation,
                           authorisation, consent or any order or decree of any
                           governmental authority;

                  (ii)     its constitution or any legislation, rules or other
                           document constituting that party or governing its
                           activities; or

                  (iii)    any instrument to which it is a party or which is
                           binding on it or any of its assets,

                  and will not result in the creation or imposition of any
                  encumbrance or restriction of any nature on any of its assets.

4.2      BENDIGO WARRANTIES

         In addition to the warranties given by Bendigo in CLAUSE 4.1, Bendigo
         also warrants to Harmony, as at the date of this agreement and
         immediately prior to Completion that:

         (a)      it is not subject to any actual or contingent obligation to
                  issue or convert equity securities except:

                  (i)      as required or contemplated by this agreement; or

                  (ii)     the issue of Shares upon the exercise of director or
                           employee options currently on issue or issued
                           pursuant to subparagraphs (iv) or (v) below;

                  (iii)    the issue of Shares to consultants or directors of
                           Bendigo in lieu of fees or other remuneration, as
                           approved by the Board from time to time;

                  (iv)     the issue of Shares and grant of options the subject
                           of resolutions to be proposed at Bendigo's next
                           annual general meeting;

<PAGE>
                                       10

                  (v)      the grant of options to participants in Bendigo's
                           employee incentive schemes (in existence at the date
                           of this agreement), as approved by the Board from
                           time to time;

                  (vi)     the issue of Shares on conversion of convertible
                           securities currently on issue, including those to be
                           issued pursuant to the UniSuper Deed; and

                  (vii)    without limiting subparagraph (vi) above, the issue
                           of Shares in the manner or as contemplated by the
                           UniSuper Deed;

         (b)      there is no material Encumbrance over all or any of the
                  present or future assets of the Bendigo or the revenues of the
                  Bendigo business except a royalty agreement with Western
                  Mining Corporation Limited in respect of revenues earned from
                  certain tenements up to a maximum of $8,000,000;

         (c)      it is not in material default under any agreement binding on
                  it or a substantial part of its assets, nor has anything
                  occurred which is or would with the giving of notice and/or
                  lapse of time constitute an event of material default any such
                  agreement where such default or event would have a material
                  and sustained adverse effect upon the Market Price;

         (d)      the Subscription Shares on Completion will be free of any
                  Encumbrance, fully paid up and duly issued and allotted in
                  accordance with Bendigo's constitution and, so far as it
                  applies to, and requires of, Bendigo, the Corporations Act
                  2001;

         (e)      as at the date of this agreement, Bendigo has no equity
                  securities on issue other than:

                  (i)      581,973,274 Shares;

                  (ii)     23,937,000 options over Shares; and

                  (iii)    convertible notes to the face value of $6,000,000,
                           the principal and accrued interest in respect of
                           which are convertible into Shares in accordance with
                           the UniSuper Deed;

         (f)      the existing options over Shares issued by Bendigo comply in
                  all material respects with the requirements of the Listing
                  Rules as at the time of issue and are issued in all material
                  respects on terms disclosed to Harmony prior to the date of
                  this agreement;

         (g)      does not have, nor has ever had, any subsidiaries or
                  subsidiary undertakings; and

         (h)      no Material Adverse Change or Prescribed Occurrence has
                  occurred and is subsisting.

4.3      WARRANTY LIMITATIONS - TIME LIMIT

         Each of the warranties given by Bendigo under CLAUSES 4.1 AND 4.2
         ('WARRANTIES'):

         (a)      is separate and independent and is not limited by reference to
                  any other Warranty; and

<PAGE>

                                       11

         (b)      may only be the subject of a claim if such claim is made
                  within 12 months of Completion.

4.4      QUALIFICATIONS

         The Warranties are given subject to and are qualified by:

         (a)      those matters expressly disclosed in this agreement or
                  provided under the UniSuper Deed; and

         (b)      any other information relating to Bendigo which is in the
                  public domain.

4.5      EXCLUSIONS

         Each Harmony Entity agrees with Bendigo that:

         (a)      the only representations and warranties on which Harmony has
                  relied in entering into this agreement are those set out in
                  CLAUSE 4; and

         (b)      to the extent permitted by law, all other warranties,
                  representations and undertakings (whether express or implied
                  and whether oral or in writing) made or given by Bendigo or
                  its officers, employees, agents or representatives are
                  expressly excluded.

4.6      FINANCIAL LIMITS

         No Harmony Entity may make a claim for breach of Warranty:

         (a)      unless the amount claimed in respect of the claim is $200,000
                  or more; and

         (b)      until the aggregate of all claims exceeds $2,000,000.

4.7      MAXIMUM AGGREGATE LIABILITY FOR CLAIMS

         The maximum liability of Bendigo (including legal costs and expenses
         incurred in defending a claim from a third party), as a result of all
         claims by all Harmony Entities for breach of Warranty is limited to
         $25,000,000.

4.8      ENFORCEMENT OF WARRANTIES ON BEHALF OF HARMONY GROUP

         CLAUSES 4.1 AND 4.2 are held by Harmony for the benefit of itself and
         each member of the Harmony Group and may be enforced by Harmony on
         behalf of the relevant member of the Harmony Group.

5.       FURTHER RIGHTS

5.1      RIGHT TO PURCHASE SHARES

         Subject always to the Corporations Act 2001 and the Listing Rules,
         Bendigo acknowledges and agrees that each member of the Harmony Group
         shall, from Completion, have the right to purchase Shares on or outside
         the market conducted from time to time by ASX.

<PAGE>
                                       12

5.2      INVITATION TO NOMINATE BOARD MEMBER

         Subject always to Bendigo's constitution, the Corporations Act 2001 and
         the Listing Rules, Bendigo agrees that it will invite Harmony to
         nominate a person to be elected to the Board at the next general
         meeting of Bendigo members after execution of this agreement, such
         election to be subject to, and have effect from, Completion.

5.3      INVITATION TO NOMINATE PEER REVIEW PANEL MEMBER

         Bendigo agrees that, upon Completion, Harmony will, for so long as the
         Percentage Holding exceeds 25%, be entitled to appoint a person to
         Bendigo's Peer Review Panel. Harmony shall be responsible for all
         liability to, and claims by that person relating to the appointment,
         engagement and removal of such a person.

5.4      MINING EXECUTIVE'S APPOINTMENT

         Bendigo agrees that, after Completion, provided that the Percentage
         Holding exceeds 25%, Bendigo will, in consultation with Harmony,
         consider in good faith (but not be obliged to agree) the appointment of
         a nominee of Harmony, whom shall be suitably qualified for the position
         and appropriate in all the circumstances, as the senior executive
         responsible for mining and ore treatment for the New Bendigo Project.

6.       APPROVAL OF BENDIGO SHAREHOLDERS

6.1      SHAREHOLDERS' MEETING

         Each party agrees to do all things reasonably within its power to
         enable Bendigo to:

         (a)      convene a general meeting of Bendigo's shareholders
                  ('MEETING') to consider resolutions, among others, seeking
                  (subject to CLAUSE 6.2) approval of:

                  (i)      the issue of the Subscription Shares by Bendigo to
                           the Subscriber for the purposes of section 611,
                           exception 7, of the Corporations Act 2001 and Listing
                           Rule Chapter 7;

                  (ii)     the issue by Bendigo to the Subscriber of the
                           Subscriber Options (including Shares to be issued
                           upon exercise of the Subscriber Options) referred to
                           in this document for the purposes of section 611,
                           exception 7 of the Corporations Act 2001 and Listing
                           Rule Chapter 7; and

                  (iii)    the issue of any Top-Up Shares, any Top-Up Options
                           and any Additional Options (including Shares to be
                           issued upon exercise of any Top-Up Options and any
                           Additional Options) by Bendigo to the Subscriber for
                           the purposes of section 611, exception 7, of the
                           Corporations Act 2001;

         (b)      use its reasonable endeavours to hold the Meeting by 18
                  December 2001;

         (c)      for the purposes of the Meeting, commission an independent
                  expert ('INDEPENDENT EXPERT') to provide a report of the type
                  described in ASIC Policy Statement 74 as to whether all or any
                  of the proposed acquisitions by Harmony Entities under this
                  agreement (to the extent relevant) are "fair and reasonable"
                  to Bendigo's shareholders ('REPORT');

<PAGE>

                                       13

         (d)      use its reasonable endeavours to seek, in the notice of
                  meeting, a recommendation from at least a majority of the
                  members of the Board of all resolutions which are to be
                  considered at the Meeting which arise out of matters referred
                  to in this agreement, subject to any requirement of any
                  applicable laws or the Listing Rules;

         (e)      before the Meeting, refrain from publishing any statement or
                  taking any action which states or suggests that any of the
                  resolutions and which are to be considered at the Meeting
                  which arise out of matters referred to in this agreement are
                  not recommended by at least a majority of the Board, subject
                  to any requirements of any applicable laws or the Listing
                  Rules; and

         (f)      prepare a notice of meeting and explanatory statement to its
                  shareholders in respect of the Meeting which (subject to
                  CLAUSE 6.2) complies with all relevant legal and regulatory
                  requirements, policies and guidelines and which incorporates
                  any comments made by Harmony necessary for compliance with its
                  reasonable view as to the applicable legal and regulatory
                  requirements (and in that regard Bendigo must give Harmony
                  reasonable opportunity to comment on the draft of such
                  documents prior to their issue).

6.2      NO WARRANTY OR REPRESENTATION

         Despite any other provision of this agreement or any other matter,
         circumstance or event (whether occurring before or after the date of
         this agreement), Harmony acknowledges that Bendigo makes no, and will
         not be obliged to make at any time any, warranty or representation to
         Harmony, or any other party, regarding whether or not:

         (a)      all or any of the resolutions the subject of or contemplated
                  by this agreement and proposed at the Meeting, comply, in
                  whole or in part, with section 611 (item 7) of the
                  Corporations Act 2001; and

         (b)      the acquisition by the Subscriber or any Harmony Entity of
                  securities in Bendigo, whether issued pursuant to this
                  agreement or on exercise of any option over unissued Shares
                  granted pursuant to this agreement, contravenes in any respect
                  section 606 of the Corporation Act 2001,

         and the warranties and representations given by Bendigo in this
         agreement or otherwise are to be read down accordingly.

7.       PARTICIPATION RIGHT

7.1      RIGHT TO PARTICIPATE IN ISSUE OF FURTHER SHARES

         If:

         (a)      at any time during the period after Completion until the
                  Expiry Date, Bendigo wishes to issue Further Shares other
                  than:

                  (i)      to a Harmony Entity; or

                  (ii)     pursuant to a Pro Rata Issue; or

<PAGE>
                                       14

                  (iii)    the issue of Shares to directors or consultants of
                           Bendigo in lieu of fees or other remuneration, as
                           approved by the Board from time to time; or

                  (iv)     on the conversion of convertible securities in
                           Bendigo (including without limitation any Subscriber
                           Options, Top-Up Options or Additional Options); or

                  (v)      without limiting subparagraph (iv) above, the issue
                           of Shares in the manner or as contemplated by the
                           UniSuper Deed; and

         (b)      immediately prior to the offer of those Further Shares, the
                  Percentage Holding exceeds 25%,

         the Subscriber shall have a non-assignable right to subscribe for a
         portion of those Further Shares in accordance with this CLAUSE 7.

7.2      OFFER OF FURTHER SHARES

         Subject to CLAUSE 7.1, if Bendigo wishes to issue Further Shares
         ('RELEVANT ISSUE'), Bendigo must make an offer in writing to the
         Subscriber of Further Shares ('OFFER') on or about the same time as any
         offer of Further Shares is made to a person other than the Subscriber
         and must specify in the Offer:

         (a)      the total number of Further Shares Bendigo will offer under
                  the Relevant Issue to persons other than the Subscriber;

         (b)      the price at which each Further Share is offered, or in the
                  event that non-cash consideration is to he provided, the cash
                  value ascribed to such consideration on a per Share basis
                  ('ISSUE PRICE');

         (c)      the number of Top-Up Shares to be offered to the Subscriber;
                  and

         (d)      the closing date of the Offer ('CLOSING DATE') being no
                  earlier than the date 10 Business Days after the date of the
                  Offer.

7.3      ACCEPTANCE OF OFFERS

         The Subscriber may accept or reject an Offer made pursuant to CLAUSE
         7.2 for all or part of the Top-Up Shares offered to the Subscriber by
         giving written notice to Bendigo on or before the Closing Date. Such an
         acceptance:

         (a)      must state the number of Top-Up Shares subscribed for
                  ('ACCEPTED TOP-UP SHARES');

         (b)      can be conditional only in respect of compliance with any
                  applicable laws and Listing Rules and on the obtaining of any
                  necessary regulatory approvals (which conditions may be for
                  the benefit of both parties);

         (c)      will be irrevocable; and

         (d)      will be deemed to be an acceptance for a lesser number of
                  Top-Up Shares in the event that the actual number of Further
                  Shares issued under the Relevant Issue is less than the total
                  number of Further Shares specified in the Offer, in

<PAGE>
                                       15

                  which case the number of the Accepted Top-Up Shares will be
                  recalculated and reduced by the same proportion that the
                  actual number of Further Shares issued bears to the total
                  number of Further Shares specified in the Offer.

         If no acceptance is received by 5:00 pm (Melbourne time) on the Closing
         Date, the Subscriber will be deemed to have rejected that Offer
         provided that the Offer was sent to the Subscriber in all material
         respects in accordance with the provisions of CLAUSE 14.

7.4      COMPLETION DATE

         If the Subscriber has accepted an Offer in accordance with CLAUSE 7.3
         and all conditions of that acceptance have been satisfied, or waived in
         writing, completion of the issue of the Accepted Top-Up Shares pursuant
         to such Offer must take place at a venue in Australia to be agreed
         between the parties (or failing agreement, at Bendigo's registered
         office) on a date which must:

         (a)      be the same as the completion date for the Relevant Issue to
                  third parties;

         (b)      be no later than 3 months after the Closing Date ('COMPLETION
                  END DATE'); and

         (c)      subject to paragraphs (a) and (b) of this CLAUSE 7.4, be
                  otherwise agreed by the parties.

7.5      COMPLETION OF SUBSCRIPTION FOR FURTHER SHARES

         At completion of a subscription for Further Shares:

         (a)      the Subscriber must subscribe for the Accepted Top-Up Shares
                  by delivering a bank cheque to Bendigo (or other cleared funds
                  acceptable to Bendigo) in payment of the aggregate Issue Price
                  for the Accepted Top-Up Shares;

         (b)      Bendigo must deliver to the Subscriber the certificate(s) or
                  holding statement(s) relating to the Accepted Top-Up Shares;
                  and

         (c)      Bendigo, must as soon as practicable thereafter, make
                  application for such Accepted Top-Up Shares to be quoted on
                  the official list of the ASX.

7.6      GRANT OF TOP-UP OPTIONS FOLLOWING A SUBSCRIPTION FOR TOP-UP SHARES

         If and only if the Subscriber has completed a subscription for Accepted
         Top-Up Shares in accordance with CLAUSE 7.5; Bendigo must:

         (a)      immediately upon the issue of the Accepted Top-Up Shares,
                  grant (and the Subscriber must accept that grant) the relevant
                  number of Top-Up Options; and

         (b)      within 10 Business Days thereafter, deliver to the Subscriber
                  the certificate(s) or holding statement(s) relating to the
                  relevant number of Top-Up Options.

         The Subscriber acknowledges and agrees that the issue of Top-Up Options
         in accordance with this CLAUSE 7 satisfies in full any obligation of
         Bendigo pursuant to the terms of issue (including paragraph 6) of the
         Subscriber Options in SCHEDULE 2.

<PAGE>
                                       16

7.7      THIRD PARTY ISSUE

         If, after the procedure set out in this CLAUSE 7 has been complied
         with, any of the Top-Up Shares have not been subscribed for by the
         Subscriber (whether due to partial or non-acceptance of the Offer
         pursuant to CLAUSE 7.3 or the deemed rejection of the Offer arising out
         of the Subscriber's failure to complete the subscription for the
         Accepted Top-Up Shares by the Completion End Date) (those Top-Up Shares
         not subscribed for being the 'DECLINED SECURITIES'):

         (a)      Bendigo may issue the Declined Securities to a person other
                  than a Harmony Entity on terms and conditions which are no
                  less favourable to Bendigo than the terms and conditions set
                  out in the Issue Notice at any time before the expiry of 3
                  months after the Completion End Date; and

         (b)      this CLAUSE 7 will not apply to the issue of these Declined
                  Securities by Bendigo pursuant to CLAUSE 7.7(a).

7.8      SHAREHOLDER APPROVAL

         If, in accordance with any of CLAUSES 7.1, 7.9 OR 9.1, Bendigo wishes
         to issue New Securities or Further Shares which, if issued, would
         result in the obligation to issue Top-Up Options or Additional Options
         to the Subscriber pursuant to this agreement, Bendigo shall not make
         such issue unless it obtains the approval of shareholders of Bendigo in
         a general meeting for the issue and exercise of the relevant Top-Up
         Options or Additional Options:

         (a)      if and only if required by ASX or the Listing Rules; and

         (b)      if:

                  (i)      Harmony acting reasonably (having regard to any
                           shareholder or other regulatory approval (including
                           any ASIC relief) previously obtained and any other
                           relevant circumstances) so requests, such approval to
                           be obtained pursuant to section 611 (item 7) of the
                           Corporations Act 2001; and

                  (ii)     Harmony agrees to pay and indemnify Bendigo for all
                           costs (including legal costs) reasonably incurred by
                           Bendigo in complying with ASIC Policy Statement 74
                           and section 611 (item 7) of the Corporations Act
                           2001, to the extent such costs exceed those incurred
                           by Bendigo pursuant to paragraph (a) above.

7.9      ISSUES OF NEW SECURITIES

         If:

         (a)      at any time during the period from Completion until the Expiry
                  Date; and

         (b)      immediately prior to the issue of New Securities the
                  Percentage Holding exceeds 25%,

         Bendigo may not issue New Securities other than:

                  (i)      pursuant to a Pro Rata Issue; or

<PAGE>
                                       17

                  (ii)     to directors or consultants of Bendigo in lieu of
                           their fees or other remuneration (as approved by the
                           Board from time to time); or

                  (iii)    to participants in Bendigo's employee incentive
                           scheme (as approved by the Board from time to time,
                           and whether such scheme is existing at the time of
                           this agreement or is subsequently adopted),

         unless such issue of New Securities is subject to reasonable conditions
         agreed between Bendigo and Harmony (each party acting reasonably) which
         ensure that the Securityholding is not diluted without Harmony having
         an opportunity to maintain the Securityholding on terms no less
         favourable than those applicable to other offerees of the New
         Securities being offered under the proposed issue.

7.10     PROCEDURE ON CONVERSION OF EQUITY SECURITIES

         In the event that Bendigo receives from any holder of equity securities
         which are convertible into Shares ('THIRD PARTY SECURITIES HOLDER'),
         notice that such Third Party Securities Holder intends to convert those
         equity securities into Shares ('NOTICE OF CONVERSION'), Bendigo must:

         (a)      promptly give notice to Harmony of the intended conversion,
                  such notice to include details of the number of Shares to
                  which the Third Party Securities Holder will be entitled upon
                  conversion;

         (b)      refrain from issuing the Shares to the Third Party Securities
                  Holder for a period of 5 Business Days from receipt of the
                  Notice of Conversion, subject to the terms of conversion for
                  such equity securities requiring their issue earlier in time;
                  and

         (c)      if a Harmony Group member notifies Bendigo that it wishes to
                  exercise Options or other New Securities in order to prevent
                  dilution of its Shareholding, ensure that the Shares issued to
                  the Third Party Securities Holder and the Harmony Group member
                  (provided that the Harmony Group member has exercised the
                  relevant Options in accordance with the requirements for
                  exercise of those Options pursuant to Schedule 2 including the
                  payment in cleared funds of the aggregate Exercise Price) are
                  issued contemporaneously, subject to the terms of conversion
                  for such equity securities requiring their issue earlier in
                  time.

8.       RIGHT OF FIRST REFUSAL TO UNDERWRITE

8.1      UNDERWRITTEN CAPITAL RAISING

         If:

         (a)      at any time during the period from Completion until the Expiry
                  Date, Bendigo undertakes (or proposes to undertake) an
                  underwritten Pro Rata Issue of Shares ('UNDERWRITTEN ISSUE');
                  and

         (b)      on the date Bendigo notifies the Subscriber of the proposed
                  Underwritten Issue pursuant to CLAUSE 8.2, the Percentage
                  Holding exceeds 25%,

<PAGE>
                                       18

                  the Subscriber will have a non-assignable right of first
                  refusal to underwrite the Underwritten Issue in accordance
                  with this CLAUSE 8. For the avoidance of doubt, the Subscriber
                  may elect to underwrite the whole or part only of the
                  Underwritten issue.

8.2      UNDERWRITING NOTICE

         Subject to CLAUSE 8.1, Bendigo must give a notice ('UNDERWRITING
         NOTICE') to the Subscriber stating that it wishes to conduct an
         Underwritten Issue and must specify in the Underwriting Notice:

         (a)      the approximate number of Shares Bendigo proposes to issue
                  under the Underwritten Issue ('UNDERWRITTEN SHARES');

         (b)      the price at which Bendigo wishes to issue the Underwritten
                  Shares; and

         (c)      the other material terms of the Underwritten Issue and the
                  material terms for underwriting the Underwritten Issue
                  ('UNDERWRITING TERMS').

8.3      ACCEPTANCE OF OFFER

         Subject to complying with the Corporations Act 2001 and the Listing
         Rules, the Subscriber may accept or reject the offer to underwrite in
         full or in part the Underwritten Issue for the Underwritten Shares in
         accordance with the Underwriting Terms by giving written notice to
         Bendigo on or before the date 10 Business Days after receipt of the
         Underwriting Notice. Such an acceptance:

         (a)      is conditional only in respect of compliance with any
                  applicable laws and Listing Rules and on the obtaining of any
                  necessary regulatory approvals, (which conditions may be for
                  the benefit of both parties), which approvals must be obtained
                  within 45 days of the date of acceptance, otherwise the
                  acceptance is of no effect;

         (b)      is irrevocable;

         (c)      if partial only, must advise to the extent of the partial
                  underwriting (the Underwritten Shares the Subscriber agrees to
                  underwrite being the 'SUBSCRIBER UNDERWRITTEN SHARES');

         (d)      will be deemed to include an agreement from each Harmony
                  Entity to subscribe for all of each Harmony Entity's
                  entitlement (if any), as a securityholder in Bendigo on the
                  applicable record date, under the Underwritten Issue; and

         (e)      will be deemed to include an agreement to execute all such
                  agreements and documents as are necessary or desirable to give
                  full effect to the Subscriber's underwriting obligation
                  arising under this CLAUSE 8 from its acceptance.

         If no acceptance is received by 5:00 pm (Melbourne time) the date 10
         Business Days after receipt of the Underwriting Notice, the Subscriber
         will be deemed to have rejected the offer to underwrite any of the
         Underwritten Issue.

8.4      UNDERWRITING

         If the Subscriber accepts the offer to in full or in part underwrite
         the Underwritten Issue in accordance with CLAUSE 8.3, the Subscriber
         must underwrite the Underwritten Issue in

<PAGE>
                                       19

         accordance with the Underwriting Terms in respect of the Subscriber
         Underwritten Shares (including subscribing for that proportion of any
         shortfall in respect of the Underwritten Issue up to an amount equal to
         the Subscriber Underwritten Shares) and otherwise in compliance with
         the Corporations Act 2001 and the Listing Rules.

8.5      THIRD PARTY UNDERWRITING

         If, after the procedure set out in this CLAUSE 8 has been complied
         with, the Subscriber does not or does not agree to fully underwrite all
         of the Underwritten Issue, Bendigo may obtain third party underwriting
         for the remaining part of the Underwritten Issue on terms and
         conditions which are no less favourable to Bendigo than the terms and
         conditions set out in the Underwriting Notice at any time before the
         expiry of 3 months after the date of the Underwriting Notice.

9.       GRANT OF OPTIONS ON PRO RATA ISSUE

9.1      RIGHT TO RECEIVE OPTIONS ON PRO RATA ISSUE

         If;

         (a)      at any time during the period from Completion until the Expiry
                  Date Bendigo issues securities pursuant to a Pro Rata Issue
                  ('RELEVANT PRI'); and

         (b)      on the record date for the Relevant PRI the Percentage Holding
                  exceeds 25%;

         the Subscriber shall have a non-assignable right to receive a grant of
         Additional Options in accordance with this CLAUSE 9.

9.2      PRO RATA ISSUE

         The Subscriber shall in all other respects be entitled to participate
         on exactly the same terms as any other shareholder in Bendigo in any
         Relevant PRI.

9.3      COMPLETION DATE

         If the Harmony Entities:

         (a)      have been offered an entitlement to a number of securities as
                  part of the Relevant PRI ('OFFERED ENTITLEMENT');

         (b)      have accepted all or part of the Offered Entitlement (such
                  number accepted to be the 'ACCEPTED ENTITLEMENT');

         (c)      have provided Bendigo with cleared funds for the Accepted
                  Entitlement,

         then at completion of the Relevant PRI, the Subscriber shall be
         entitled to receive a grant of Additional Options in accordance with
         CLAUSE 9.5.

9.4      COMPLETION OF A RELEVANT PRI

         Bendigo agrees that if the Harmony Entities accept all or part of an
         Offered Entitlement under a Relevant PRI, Bendigo will ensure that all
         equity securities issued under the Pro

<PAGE>
                                       20

         Rata Issue in question shall be issued and allotted to all shareholders
         who participate in the Pro Rata Issue contemporaneously.

9.5      GRANT OF TOP-UP OPTIONS FOLLOWING A SUBSCRIPTION FOR TOP-UP SHARES

         If and only if the Harmony Entities have complied with its obligations
         under CLAUSE 9.3; Bendigo must:

         (a)      immediately upon the issue of securities pursuant to the
                  Relevant PRI, grant (and the Subscriber must accept that
                  grant) the relevant number of Additional Options; and

         (b)      within 10 Business Days thereafter, deliver to the Subscriber
                  the certificate(s) or holding statement(s) relating to the
                  relevant number of Additional Options.

10.      GUARANTEE

10.1     GUARANTEE

         In consideration of Bendigo agreeing to enter into and perform its
         obligations under this agreement, Harmony unconditionally and
         irrevocably guarantees to Bendigo the due and punctual performance of
         the Subscriber's obligations under this agreement (the 'GUARANTEED
         OBLIGATIONS').

10.2     PERFORM OBLIGATIONS

         If a Subscriber defaults in the due and punctual performance of any or
         all of the Guaranteed Obligations, Harmony must pay any money, do any
         thing or cause the performance of any other obligation comprising the
         Guaranteed Obligations on demand to or as directed by Bendigo.

11.      DIVIDEND POLICY

         Subject to the law, including the Corporations Act 2001, the parties
         acknowledge that it is Harmony's firm intention to support the
         distribution of a high proportion of the distributable profit generated
         by Bendigo as dividends. To this end Harmony considers that 60% of
         profits after tax of Bendigo, after provision for capital expenditure
         requirements specifically in relation to the New Bendigo Project, to be
         an appropriate guideline.

12.      PUBLICITY

         A party must not make or authorise a press release or public
         announcement relating to the negotiations of the parties or the subject
         matter or provisions of this agreement ('ANNOUNCEMENT') unless:

         (a)      it is required to be made by law or the Listing Rules and
                  before it is made that party has:

                  (i)      notified the other party; and

                  (ii)     given the other party a reasonable opportunity to
                           comment on the contents of, and the requirement for,
                           the Announcement; or

<PAGE>
                                       21

         (b)      it has the prior approval of both Harmony and Bendigo.

13.      TERMINATION

13.1     DEFAULT

         If either Bendigo, Harmony or any Subscriber ('DEFAULTING PARTY')
         defaults in the performance of any of its obligations under this
         agreement and the default:

         (a)      is not capable of being remedied; or

         (b)      if capable of being remedied, is not remedied within 10
                  Business Days after notice requiring it to be remedied is
                  given to the Defaulting Party by the party not in default,

         the party not in default may immediately terminate this agreement by
         giving notice in writing to the other party.

13.2     AFTER TERMINATION

         On termination of this agreement for any reason, each party must stop,
         and must cause its permitted disclosees to stop, using confidential
         information of another party and, at the other party's option destroy
         and certify in writing to the other party the destruction of all
         confidential information in its possession or control.

13.3     SURVIVAL

         CLAUSES 12 and 13 continue to apply after termination of this
         agreement.

13.4     ACCRUED RIGHTS

         Termination of this agreement does not affect any accrued rights or
         remedies of a party.

14.      NOTICE

14.1     FORM

         A party giving notice or notifying under this agreement must do so in
         writing:

         (a)      directed to the recipient's address specified in this clause,
                  as varied by any notice; and

         (b)      hand delivered or sent by prepaid post or facsimile to that
                  address.

         The parties' addresses and facsimile numbers are:

         BENDIGO

         Bendigo Mining N.L., 66 Ham Street, Kangaroo Flat, Victoria 3555,
         AUSTRALIA

         Facsimile No: +61 3 5447 1835

         Attention: Mr A D Buerger/ Mr H Dusseljee (Company Secretary)

<PAGE>
                                       22

         HARMONY

         Harmony Gold Mining Company Ltd, PO Box 2, Randfontein 1760, South
         Africa

         Facsimile No: 0011 27 11693 2411

         Attention: Ted Grobicki/Fred Baker (Company Secretary)

         Copy to: John Elliott, c/- Clayton Utz (Fax number (02) 9251 7832)

         SUBSCRIBER

         Addressed to the Subscriber notified to Bendigo in writing by Harmony,
         c/- Harmony (at the contact address set out above or such other address
         as is notified to Bendigo from time to time).

14.2     DELIVERY

         A notice given in accordance with CLAUSE 14.1 is taken to be received
         (all times to be the local time at the recipient's location):

         (a)      if hand delivered, on delivery;

         (b)      if sent by prepaid post, seven days after the date of posting;
                  or

         (c)      if sent by facsimile, at the time at which that fax is sent as
                  shown on the transmission report which is produced by the
                  machine from which that fax is sent and which confirms
                  transmission of that fax in its entirety,

         if it is taken to be received before 5:00 pm on a Business Day,
         otherwise it is taken to be received at 9:00 am on the next Business
         Day.

15.      FURTHER ACTION

         Each party must use its best efforts to do all things necessary or
         desirable to give full effect to this agreement.

16.      DURATION OF PROVISIONS

         On completion of the transactions contemplated in this agreement, the
         provisions of this agreement will not merge and, to the extent any
         provision has not been fulfilled, will remain in force.

17.      SEVERABILITY

         Part or all of any provision of this agreement that is illegal or
         unenforceable may be severed from this agreement and the remaining
         provisions of this agreement continue in force.

<PAGE>
                                       23

18.      COSTS

         Each party must bear its own costs of negotiating, preparing and
         executing this agreement.

19.      STAMP DUTY AND OTHER TAXES

         Harmony must pay all stamp duty or other Taxes on or in respect of:

         (a)      this agreement;

         (b)      any instrument, document or transaction relating to the issue
                  or grant of equity securities to the Subscriber contemplated
                  by this agreement; and

         (c)      any instrument or document required under any relevant law in
                  connection with any transaction relating to the issue or grant
                  of equity securities to the Subscriber contemplated by this
                  agreement.

20.      WAIVER

         (a)      Failure to exercise or enforce or a delay in exercising or
                  enforcing or the partial exercise or enforcement of any right,
                  power or remedy provided by law or under this agreement by any
                  party will not in any way preclude, or operate as a waiver of,
                  any exercise or enforcement, or further exercise or
                  enforcement of that or any other right, power or remedy
                  provided by law or under this agreement.

         (b)      Any waiver or consent given by any party under this agreement
                  will only be effective and binding on that party if it is
                  given or confirmed in writing by that party.

         (c)      No waiver of a breach of any term of this agreement will
                  operate as a waiver of another breach of that term or of a
                  breach of any other term of this agreement.

21.      COUNTERPARTS

         This agreement may be executed in any number of counterparts.

22.      ENTIRE AGREEMENT

         This agreement and the Confidentiality Agreement:

         (a)      constitute the entire agreement between the parties as to
                  their subject matter; and

         (b)      in relation to that subject matter, supersede any prior
                  understanding or agreement between the parties and any prior
                  condition, warranty, indemnity or representation imposed,
                  given or made by a party.

<PAGE>
                                       24

23.      AMENDMENT

         This agreement may only be varied by a document signed by or on behalf
         of each of the parties.

24.      ASSIGNMENT

         Subject to CLAUSES 7.1, 8.1 AND 9.1 under which the Subscriber's rights
         are non-assignable and therefore cannot be assigned without a prior
         amendment to, and in accordance with, this agreement, a party must not
         assign or otherwise deal with this agreement or any right under this
         agreement without the prior written consent of the other party, which
         consent it may withhold in its absolute discretion.

25.      GOVERNING LAW AND JURISDICTION

25.1     LAW

         This agreement is governed by the law applicable in Victoria,
         Australia.

25.2     JURISDICTION

         Each party irrevocably and unconditionally submits to the non-exclusive
         jurisdiction of the courts of Victoria, Australia.

26.      INTERPRETATION

         In this agreement, unless the contrary intention appears:

         (a)      headings are for ease of reference only and do not affect the
                  meaning of this agreement;

         (b)      the singular includes the plural and vice versa and words
                  importing a gender include other genders;

         (c)      other grammatical forms of defined words or expressions have
                  corresponding meanings;

         (d)      a reference to a clause, paragraph, schedule or annexure is a
                  reference to a clause or paragraph of or schedule or annexure
                  to this agreement and a reference to this agreement includes
                  any schedules and annexures;

         (e)      a reference to a document or agreement, including this
                  agreement, includes a reference to that document or agreement
                  as novated, altered or replaced from time to time;

         (f)      a reference to 'A$', '$A', 'AUD', 'dollar' or '$' is a
                  reference to Australian currency;

         (g)      a reference to a specific time for the performance of an
                  obligation is a reference to that time in the State, Territory
                  or other place where that obligation is to be performed;

<PAGE>

                                       25

         (h)      words and expressions importing natural persons include
                  partnerships, bodies corporate, trustees of trusts,
                  associations, governments and governmental and local
                  authorities and agencies; and

         (i)      a reference to any legislation or statutory instrument or
                  regulation is construed in accordance with the Acts
                  Interpretation Act 1901 (Cth) or the equivalent State
                  legislation, as applicable.

<PAGE>

                                       26

EXECUTED as an agreement.

EXECUTED by BENDIGO MINING        )
N.L.                              )
                                  )

/s/ ALAN DOUGLAS BUERGER                    /s/
----------------------------------          ------------------------------------
Signature of director                       Signature of company secretary
                                            (Please delete as applicable)

Alan Douglas Buerger
----------------------------------          ------------------------------------
Name of director (print)                    Name of company secretary (print)

EXECUTED by HARMONY GOLD          )
MINING COMPANY LTD                )
                                  )

/s/ THADDEUS S.A. GROBICKI                  /s/ FREDERICK WILLIAM BAKER
----------------------------------          ------------------------------------
Signature of director                       Signature of company secretary
                                            (Please delete as applicable)

Thaddeus S.A. Grobicki                      Frederick William Baker
----------------------------------          ------------------------------------
Name of director (print)                    Name of company secretary (print)

<PAGE>
                                       27

                                   SCHEDULE 1

                                   CONDITIONS

<Table>
<Caption>
NO.                                           CONDITION
---                                           ---------
<S>      <C>
1.       Under the Foreign Acquisitions and Takeovers Act 1975 (Cth) ('FATA'),
         the Treasurer of the Commonwealth of Australia consents to the issue of
         the Subscription Shares and the grant of the Subscriber Options
         (including the issue of the relevant Shares upon exercise of the
         Subscriber Options) contemplated by this agreement. If that consent is
         given subject to conditions or requirements, this Condition is not
         fulfilled unless those conditions or requirements are reasonably
         acceptable to Harmony and Bendigo.

         For the purpose of this Condition, the Treasurer will be taken to have
         consented to the issue of the Subscription Shares and the grant of the
         Subscriber Options under this agreement if:

         (a)      the Treasurer issues a notice under the FATA stating that the
                  Commonwealth Government does not object to the issue of the
                  Subscription Shares and the grant of the Subscriber Options
                  (including the issue of the relevant Shares upon exercise of
                  the Subscriber Options); or

         (b)      the Treasurer is, by reason of lapse of time, not empowered to
                  make an order under the FATA in relation to the issue of the
                  Subscription Shares and the grant of the Subscriber Options
                  (and the issue of the relevant Shares upon exercise of the
                  Subscriber Options).

2.       Bendigo has passed, in accordance with the Listing Rules, a resolution
         in general meeting approving the appointment of Mr T. Grobicki, or
         another representative of Harmony to Bendigo's satisfaction (acting
         reasonably), to the Board of Bendigo.

3.       Bendigo has passed, in accordance with the Listing Rules, a resolution
         in general meeting approving the issue of the Subscription Shares and
         the grant of the Subscriber Options to the Subscriber under this
         agreement (and has complied in all material respects with the
         requirements of the Listing Rules in respect of that resolution).

4.       Bendigo has passed, in accordance with the constitution of Bendigo,
         resolutions in general meeting approving pursuant to (but not
         necessarily in compliance with) s.611 (exception 7) of the Corporations
         Act 2001:

         (a) the issue of the Subscription Shares and the Subscriber Options
         (including the issue of Shares upon exercise of the Subscriber Options)
         to the Subscriber under this agreement; and

         (b) the issue of any Top-Up Shares, Top-Up Options and Additional
         Options (including Shares to be issued on the exercise of Top-Up
         Options and Additional Options).

5.       ASX and ASIC approve (or do not object to) the terms and conditions of
         the issue of the Subscription Shares and the Subscriber Options
         (including the issue of Shares upon exercise of the Subscriber Options)
         to the Subscriber and the documents to be sent to members of Bendigo in
         respect of the general meeting required to vote on the resolutions
         necessary to satisfy Conditions 3 and 4.

6.       All other consents (if any) necessary or relevant for the issue of the
         Subscription Shares and the Subscriber Options to the Subscriber
         contemplated by this agreement to take place without breaching any
         statute or agreement and are granted and received either:

         (a)      without conditions or requirements; or

         (b)      with conditions and requirements that are acceptable to
                  Bendigo and (to the extent that they directly affect the
                  Subscriber) to the Subscriber.
</Table>

<PAGE>
                                       28

                                   SCHEDULE 2

                                  OPTION TERMS

1.       ENTITLEMENT

         Each Option entitles the Subscriber to acquire by way of issue one
         Share.

2.       ISSUE PRICE

         No amount is payable on grant of the Options.

3.       EXERCISE PRICE

         The exercise price of each Option is AUD0.30 (30 cents).

4.       OPTION PERIOD

         (a)      An Option may be exercised at any time before 5:00 pm on the
                  Expiry Date.

         (b)      Any Option that is not exercised will automatically expire at
                  5:00 pm on the Expiry Date.

5.       TRANSFERABILITY

         Options may not be transferred without the prior written consent of
         Bendigo, except to a member of the Harmony Group ('ELIGIBLE
         TRANSFEREE'), subject to the condition attaching to the Option that in
         the event that the Eligible Transferee in question is, at any time, no
         longer an Eligible Transferee, the Subscriber and the party which is
         ceasing to be an Eligible Transferee must immediately procure the
         transfer of the Options to the Subscriber or another Eligible
         Transferee. In the event that Options are transferred to an Eligible
         Transferee in accordance with this paragraph, all references to the
         Subscriber in this schedule shall include references to that Eligible
         Transferee to the extent to which it holds Options.

6.       PARTICIPATION IN NEW ISSUES

         If Bendigo issues Further Shares or other securities, including equity
         securities convertible into Shares (other than a Pro Rata Issue or in
         lieu of dividends or by way of dividend reinvestment pursuant to any
         shareholder election) ('FURTHER ISSUE'), the Subscriber is not entitled
         to participate in such Further Issue except strictly in accordance with
         CLAUSE 7 of the agreement to which this SCHEDULE 2 is annexed.

7.       NO ADJUSTMENTS FOR PRO RATA ISSUES

         If Bendigo makes a Pro Rata Issue (including an issue in lieu of
         dividends or by way of dividend reinvestment pursuant to any
         shareholder election), neither the number of underlying Shares the
         subject of an Option nor the exercise price of an Option shall be
         altered as a result of the Pro Rata issue.

8.       RECONSTRUCTION

         Subject always to paragraphs 6 and 7, if there is a reorganisation
         (including consolidation, subdivision, reduction or return) of the
         share capital of Bendigo, the rights of the Subscriber will be

<PAGE>

                                       29

         changed to the extent necessary to comply with the Listing Rules
         applying to a reorganisation of capital at the time of the
         reorganisation.

9.       RANKING OF SHARES ISSUED ON EXERCISE OF OPTIONS

         All Shares issued pursuant to the exercise of Options will, subject to
         the constitution of Bendigo, rank in all respects (including rights
         relating to dividends) pari passu with those Shares in existence at the
         date of issue.

10.      METHOD OF EXERCISE OF OPTIONS

10.1     Options may be exercised by written notice to the Board in the form
         attached to the Option certificate, or otherwise determined by Bendigo
         and notified to the Subscriber in writing. An exercise notice must
         specify the number of Options to be exercised (and the corresponding
         number of Shares required to be issued as a result of that exercise),
         which number must be:

         (a)      not less than 3,000,000 if only part of all the Options are
                  exercised; or

         (b)      if less than 3,000,000 Options remain outstanding, that number
                  of outstanding Options,

         unless prior written consent is obtained from the Board. Options will
         be deemed to have been exercised on the date the application is lodged
         with the Board.

10.2     The Subscriber must pay the exercise price in full to Bendigo in
         cleared funds on the date of exercise of Options.

10.3     The exercise of less than all of the Subscriber's Options will not
         prevent the Subscriber exercising the whole or part only of the balance
         of the its remaining Options.

10.4     If the Subscriber exercises less than the total number of Options then
         registered in its name:

         (a)      the Subscriber must surrender its Option certificate; and

         (b)      Bendigo must cancel that Option certificate and issue to the
                  Subscriber a new Option certificate in respect of the balance
                  of the Subscriber's Options.

10.5     Within 10 business days of receipt of the application for exercise of
         Options and payment by the Subscriber of the exercise price, Bendigo
         must issue to the Subscriber:

         (b)      the number of Shares specified in the application; and

         (c)      a holding statement in respect of the number of Shares
                  specified in the application, to be issued at the end of the
                  month of issue.

10.6     If at the time of exercise of any Options the Shares are listed on the
         official list of the ASX, Bendigo will as soon as practicable after the
         issue of the Shares make application for the Shares issued on exercise
         of Options by the Subscriber to be granted official quotation on ASX.

<PAGE>

                                   ANNEXURE A

                                APPLICATION FORM

The Directors
Bendigo Mining N.L.
66 Ham Street
Kangaroo Flat
Victoria 3555
AUSTRALIA

Dear Directors

APPLICATION FOR SHARES AND OPTIONS

[INSERT NAME OF SUBSCRIBER], a company registered in [INSERT JURISDICTION OF
INCORPORATION] with number [INSERT COMPANY NUMBER] of [ADDRESS] applies for
294,117,647 hilly paid ordinary shares ("SHARES"), and 360,000,000 options to
subscribe for fully paid ordinary shares ("OPTIONS"), in BENDIGO MINING N.L. ACN
005 674 073.

[INSERT NAME OF SUBSCRIBER] authorises you to record its name in the register of
shareholders and optionholders of Bendigo Mining N.L. in respect of the Shares
and Options.

Payment for the issue of the Shares and Options in the sum of AUD50,000,000 will
be sent by telegraphic transfer to [DETAILS OF BANK FOR DEPOSIT] or in such
other manner agreed by the parties.

Yours faithfully

----------------------------------
Director

DATED

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]