Document:

Exhibit 4.3

 

TRUST DEED CONSTITUTING
THE SASOL INZALO EMPLOYEE SCHEME

 

entered into
between

 

SASOL LIMITED

 

(Registration
No.1979/003231/06)

 

and

 

SEADIMO HESSIE CHABA

 

(Identity No. 580102
1184 08 6)

 

 

1.            INTERPRETATION

 

1.1.          The
headings of the clauses in this Trust Deed are for the purpose of convenience
and reference only and shall not be used in the interpretation of nor modify
nor amplify the terms of this Trust Deed nor any clause hereof.  Unless a contrary intention clearly appears:

 

1.2.          words importing:

 

1.2.1.                any one gender include the other two genders;

 

1.2.2.                the singular include the plural and vice
versa; and

 

1.2.3.                natural persons include created entities (corporate or
unincorporate) and the state and vice versa;

 

1.3.          the following terms shall have the meanings assigned to them
hereunder and cognate expressions shall have corresponding meanings, namely:

 

1.3.1.                “Administrator” means the person
who is from time to time appointed by the Trust in terms of clause 12 (Day-to-Day Administration of the Trust) to administer the
day-to-day affairs of the Trust;

 

1.3.2.                “Auditors” means the auditors of
the Trust from time to time, it being recorded that initially, the auditors
shall be KPMG;

 

1.3.3.                “Available Scheme Shares” means
those Scheme Shares in respect of which at the relevant time, no Vested Rights
have vested in any Employee Beneficiary including those in respect of which
there had previously been Vested Rights, which had been forfeited, but subject
to clause 19.4.5;

 

1.3.4.                “Bargaining Council” means a
bargaining council established in terms of the LRA;

 

1.3.5.                “BEE” means broad-based black
economic empowerment;

 

1.3.6.                “BEE Act” means the Broad-Based
Black Economic Empowerment Act, 2003;

 

1.3.7.                “Beneficiaries” means collectively,
Employee Beneficiaries and the Residual Beneficiary;

 

1.3.8.                “Beneficiary Balance” means in
relation to an Employee Beneficiary, at any relevant time, the number of Scheme
Shares and Other Assets in respect of which he has Vested Rights;

 

 

1.3.9.                “Black Person” means the more
stringent definition from time to time ascribed to it in the BEE Act, Codes or
Charter, and which as at the Signature Date is the definition contained in the
Codes namely Africans, Coloureds or Indians, and who are citizens of the
Republic of South Africa by:

 

1.3.9.1.             birth or descent; or

 

1.3.9.2.             naturalisation occurring
either:

 

1.3.9.2.1.               before the commencement date of the Constitution; or

 

1.3.9.2.2.               after the commencement date of the Constitution, but who, without
the policy of apartheid, would have qualified for naturalisation before such
commencement date;

 

1.3.10.              “Board” means the board of
directors of the Company, acting either as such or through any committee or
person, to which or whom the board of directors has delegated authority for the
purposes of the Trust;

 

1.3.11.              “Business Day” means any day on
which banks are generally open for business in the Republic of South Africa,
except a Saturday, Sunday or official public holiday in the Republic of South
Africa;

 

1.3.12.              “CCMA” means the Commission for
Conciliation, Mediation and Arbitration established in terms of the LRA;

 

1.3.13.              “Charter” means from
time to time the empowerment charter applicable to the Company or any Group
Company (as the case may be), including, without limitation, the Charter for
the South African Petroleum and Liquid Fuels Industry on Empowering
Historically Disadvantaged South Africans in the Petroleum and Liquid Fuels
Industry adopted by the liquid fuels industry in November 2000 or the
Broad-Based Socio-Economic Empowerment Charter for the South African Mining
Industry as developed in terms of the Mineral and Petroleum Resources
Development Act, 2002, and/or any other charter applicable to the Company
and/or any Group Company from time to time, or if such charters are amended or
replaced, the applicable amended or replacement charter;

 

1.3.14.              “Codes” mean the Codes of Good
Practice on Black Economic Empowerment promulgated as regulations in terms of
the BEE Act;

 

 

1.3.15.              “Commencement Date” means the next
Business Day after the last of the Suspensive Conditions is fulfilled;

 

1.3.16.              “Companies Act” means the Companies
Act, 1973;

 

1.3.17.              “Company” means Sasol Limited
(Registration No. 1979/003231/06);

 

1.3.18.              “Company Appointed Trustee” means a
Trustee who is appointed by the Board from time to time in terms of clause 4.2;

 

1.3.19.              “Consideration Shares” mean those
shares in a company offered to the Shareholders as consideration for the
acquisition of their Shares;

 

1.3.20.              “Constitution” means the Constitution
of the Republic of South Africa, 1993;

 

1.3.21.              “Corporate Action” means any action
referred to in clause 23 (Corporate Action);

 

1.3.22.              “Costs” means all costs and
expenses due and payable by the Trust which are not Specific Taxation and Expenses;

 

1.3.23.              “Designated Number” means 850
(eight hundred and fifty) but if the Shares are consolidated or subdivided or
clause 23.7 applies, adjusted as necessary;

 

1.3.24.              “Designated Percentage” means in
respect of a particular Employee Beneficiary the percentage which his Scheme
Shares in respect of which he has Vested Rights at the relevant time bears to
the total number of Scheme Shares;

 

1.3.25.              “Dispose” means to sell, cede
outright, transfer, lend, distribute or otherwise alienate or dispose;

 

1.3.26.              “Distribution  Date”
means as soon as reasonably possible after:

 

1.3.26.1.        the
Employee Beneficiary exercises his right under clause 25.3;  or

 

1.3.26.2.        the
Employee Beneficiary makes the requisite payment contemplated in
clause 25.4;

 

1.3.27.              “Dividends” means:

 

1.3.27.1.        all
dividends declared by the Company in the ordinary course to the Trust in
respect of the Scheme Shares (which shall not include what is described by the
Board as a special, extraordinary or abnormal dividend or distribution); and

 

 

1.3.27.2.        any
other dividends declared in the ordinary course in respect of Other Assets held
by or on behalf of the Trust (which shall not include what is described by the
board as a special, extraordinary or abnormal dividend or distribution),

 

and paid to the Trustees on behalf of the Trust;

 

1.3.28.              “Effective Date” means as regards
any Eligible Employee who becomes an Employee Beneficiary pursuant to :

 

1.3.28.1.        clause 13.1,
the Subscription Date;

 

1.3.28.2.        clause 13.3,
the anniversary of the Subscription Date immediately preceding the date on
which he is invited to become an Employee Beneficiary;

 

1.3.29.              “Elected Trustee” means a Trustee
who is elected by Employee Beneficiaries in terms of clause 4.3 (Elected Trustee) or clause 4.4.5;

 

1.3.30.              “Elective Capitalisation Shares”
means those shares awarded to a holder of shares by way of a capitalisation
issue, if the capitalisation issue is made to a holder of shares as an
alternative to any kind of distribution or if the shares are awarded by means
of a capitalisation issue if there is an alternative to receive any other
distribution;

 

1.3.31.              “Eligible Employee” means any
person who at the relevant date when he is offered the opportunity to become an
Employee Beneficiary:

 

1.3.31.1.        is
a South African citizen or a legal permanent resident of South Africa; and

 

1.3.31.2.        either
employed on a permanent basis by the Group at or below employment level 5A, or
whose name is listed in schedule “A”, or any replacement schedule A effected in
terms of clause 13.1.2, or a Resigned Employee as contemplated in
clause 19.3.2;

 

1.3.32.              “Employee Beneficiary” means an
Eligible Employee or New Eligible Employee, who becomes a beneficiary under the
Trust in accordance with the provisions of clause 13 (Vestings)
and who does not cease to be an Employee Beneficiary in accordance with the
provisions of this Trust Deed;

 

1.3.33.              “Employer Company” means the Group
Company which employs the Employee Beneficiary;

 

 

1.3.34.              “Employer Company Board” means the
board of directors of any Employer Company, other than the Board, as
constituted from time to time, acting either as such or through any committee
or person to which or whom the board of directors of the relevant Employer
Company has delegated authority for the purposes of the Trust;

 

1.3.35.              “Employees’ Tax” means employees’
tax as contemplated in the Fourth Schedule of the Income Tax Act, or otherwise;

 

1.3.36.              “Employment by the Group” means
employment by any Group Company;

 

1.3.37.            “Entitlement Assets” means such
Scheme Shares and/or any Other Assets arising from the Scheme Shares (excluding
the entitlement referred to in clause 9.2.2) which any Employee Beneficiary
becomes entitled to take ownership of from the Trustees pursuant to this Trust
Deed;

 

1.3.38.              “Final Date” means the 10th
(tenth) anniversary of the Subscription Date unless that date does not fall on
a Business Day in which case it must be the first Business Day thereafter, or
such earlier date as determined by the Board in terms of clause 24 (Final Date), or in the case of distributions to the Residual
Beneficiary, the date when the Trustees are bound to distribute any remaining
Scheme Shares and Other Assets to the Residual Beneficiary;

 

1.3.39.              “First Trustee” means the Trustee
referred to in clause 4.2.1;

 

1.3.40.              “Forfeiture Period” means as
regards any Employee Beneficiary a period of 3 (three) years from the Effective
Date;

 

1.3.41.              “Group” means collectively:

 

1.3.41.1.        the
Company;

 

1.3.41.2.        the
Company’s wholly-owned subsidiaries from time to time (as defined in the
Companies Act);  and

 

1.3.41.3.        such
other subsidiaries whose details are contained in schedule “B”, or as may be
determined by the Board from time to time;

 

1.3.42.              “Group Company” means a company
forming part of the Group;

 

1.3.43.              “Income Tax Act” means the Income
Tax Act, 1962;

 

 

1.3.44.              “Initial Vesting” means in respect
of each Employee Beneficiary, the vesting of the Vested Rights by reason of
becoming an Employee Beneficiary pursuant to the provisions of
clause 13.2.2;

 

1.3.45.              “Initial Vesting Notice” means a
notice given by the Board or an Employer Company Board to the Trustees in terms
of clause 13.2.1;

 

1.3.46.              “Labour Court” means the Labour
Court established in terms of the LRA;

 

1.3.47.              “LRA” means Labour Relations Act,
1995;

 

1.3.48.              “Master” means the Master of the
High Court of the Republic of South Africa;

 

1.3.49.              “Month” means a calendar month;

 

1.3.50.              “New Eligible Employee” means an
Eligible Employee who is employed by any Group Company within a period of 5
(five) years after the Subscription Date;

 

1.3.51.              “Non  Elective
Capitalisation Shares” means those shares in a company awarded to a
holder of its shares by way of a capitalisation issue without any other
alternative;

 

1.3.52.              “Other Assets” means any assets
(excluding cash) of the Trust, other than Dividends required to be distributed
to the Employee Beneficiaries and Scheme Shares;

 

1.3.53.              “Other Available Assets” means any
Other Assets in respect of which at the relevant time, no Vested Rights have
vested in any Employee Beneficiary including those in respect of which there
had previously been Vested Rights, which had been forfeited, but subject to
clause 19.4.5;

 

1.3.54.              “Register” means the register
referred to in clause 7.1;

 

1.3.55.              “Repurchase” means a repurchase as
set out in this Trust Deed pursuant to the exercise by the Company of a
Repurchase Right;

 

1.3.56.              “Repurchase Formula” means the
repurchase formula set out in schedule “C”, and as may be adjusted in
accordance with the provisions of this Trust Deed;

 

1.3.57.              “Repurchase Right” means any right
granted to the Company in terms of this Trust Deed as a part of the
Subscription to Repurchase Scheme Shares;

 

1.3.58.              “Residual Beneficiary” means the
Sasol Inzalo Foundation;

 

 

1.3.59.              “Retirement” means in relation to
the Employee Beneficiary, the termination of the employment of such Employee
Beneficiary with the Group, on or after such Employee Beneficiary attaining
normal retirement age (as laid down in the Company’s pension fund or provident
fund regulations from time to time, or failing that, as determined by the
Company, it being recorded that the reference herein to the pension and
provident fund regulations is intended to be descriptive of the concept of “retire”
rather than requiring a retirement pursuant to those regulations) or, with the
approval of the Employer Company Board, such Employee Beneficiary retiring
prior to attaining the normal requirement age due to serious disability or
serious incapacitation;

 

1.3.60.              “Scheme Shares” means the
Subscription Shares plus any Elective Capitalisation Shares and Non Elective
Capitalisation Shares as consolidated or sub-divided from time to time received
by virtue of the Trustees holding Shares;

 

1.3.61.              “Share” means an ordinary no par
value share in the share capital of the Company;

 

1.3.62.              “Shareholders” mean the
shareholders of the Company from time to time;

 

1.3.63.              “Signature Date” means the date on
which the last party signing this Trust Deed does so;

 

1.3.64.              “Specific Taxation and Expenses”
means in relation to a Beneficiary, the sum of:

 

1.3.64.1.       any taxation
(including, without limitation, Employees’ Tax) that is payable by the Trust or
the Group;  and

 

1.3.64.2.       any
costs, expenses and disbursements (including without limitation, brokerage
costs, stamp duty and/or uncertificated securities tax) payable,

 

in respect of
the transactions specifically relating to that Beneficiary;

 

1.3.65.              “Statutes” means the Trust Property
Control Act and any other Statute affecting the performance by the Trustees of
their duties or functions as such;

 

1.3.66.              “Subscription” means the
subscription by the Trust of the Subscription Shares as set out in clause 9.3 (Subscription);

 

1.3.67.              “Subscription Date” means the date
on which the Subscription occurs;

 

 

1.3.68.              “Subscription Price” means a
subscription price of R0,01 (one cent) per Share;

 

1.3.69.              “Subscription Shares” means 23 333
593 (twenty three million three hundred and thirty three thousand five hundred
and ninety three) Shares;

 

1.3.70.              “Subsequent Vesting” means in
respect of each New Eligible Employee, the vesting of the Vested Rights by
reason of becoming an Employee Beneficiary pursuant to the provisions of clause 13.3;

 

1.3.71.              “Subsequent Vesting Notice” means a
notice given by the Board or any Employer Company Board to the Trustees in
terms of clause 13.3;

 

1.3.72.              “Suspensive  Conditions”
means the suspensive conditions to the Subscription as set out in clause 9.1(Suspensive Conditions of Subscription);

 

1.3.73.              “Trust” means The Sasol Inzalo
Employee Scheme constituted by this Trust Deed;

 

1.3.74.              “Trust Deed” means this trust deed,
as amended from time to time;

 

1.3.75.              “Trust Property Control Act” means
the Trust Property Control Act, 1988;

 

1.3.76.              “Trustees” means the Trustees from
time to time of the Trust;

 

1.3.77.              “Vested Right” means in respect of
an Employee Beneficiary, those rights which vest from the Effective Date,
initially in the Subscription Shares and Dividends and later in other Scheme
Shares and Other Assets (to the extent that there are those) in terms of the
provisions of this Trust Deed.

 

1.4.          If any provision in a definition is a substantive provision
conferring rights or imposing obligations on any interested party,
notwithstanding that it is only in the interpretation clause, effect shall be
given to it as if it were a substantive provision of this Trust Deed.

 

1.5.          Any reference to an enactment or subordinate legislation is to that
enactment or subordinate legislation as at the Signature Date and as amended or
re-enacted from time to time.

 

1.6.          If any term is defined within the context of any particular clause
in this Trust Deed, the term so defined, unless it is clear from the clause in
question that the term so defined has limited application to the relevant
clause, shall bear the meaning ascribed to it for all purposes in terms of this
Trust Deed, notwithstanding that that term has not been defined in this
interpretation clause.

 

 

1.7.          The rule of construction that a contract shall be interpreted
against the party responsible for the drafting or preparation of such contract,
shall not apply.

 

1.8.          The words “other” and “otherwise” shall not be construed eiusdem generis with any preceding words where a wider
construction is possible.

 

1.9.          The annexures to this Trust Deed form an integral part hereof and
words and expressions defined in this Trust Deed shall bear, unless the context
otherwise requires, the same meaning in such annexures.

 

2.             ESTABLISHMENT AND PURPOSE
OF THE TRUST

 

2.1.          There is hereby established The Sasol Inzalo Employee Scheme to be
administered by the Trustees for the benefit of all Beneficiaries and in the
manner and upon the terms and conditions set out in this Trust Deed.

 

2.2.          The Company intends to broaden equity ownership among its employees
and to spread a significant portion of its empowerment transaction amongst the
Group’s employees to ensure the sustained success of the Group.  The main purpose of the Trust, therefore, is
to grant Vested Rights to the Employee Beneficiaries and thereby to enable the
Company to broaden equity ownership among its employees. This would also assist
the Company to achieve the BEE objectives set out in the Codes and/or the
Charter (as the case may be) and to maximise points for ownership under the
generic scorecard of the Codes and/or the Charter (as the case may be).

 

3.             FUNDING OF THE TRUST

 

3.1.         The Company has made a contribution of R1 000,00 (one thousand
rand) which has been accepted by the First Trustee.

 

3.2.          As soon as reasonably possible after the Commencement Date, the
Company or its nominee/s shall make a capital contribution to the Trust of an
amount equal to the number of Subscription Shares multiplied by the Subscription
Price, for the sole purpose of enabling the Trust to subscribe for the
Subscription Shares in terms of clause 9.3

 

3.3.          Save as contemplated in clause 12 (Day-To-Day
Administration and Costs and Expenses of the Trust), the Company
shall not be obliged to provide any further funding of any nature to the Trust
nor shall it be obliged to give any guarantee or indemnity in respect of any of
the Trust’s liabilities or obligations.

 

 

4.             TRUSTEES

 

4.1.          Number and Composition of Trustees

 

4.1.1.                Save as may otherwise
be required by the Codes or the Charter, and save in the period prior to the
appointment of the first Elected Trustee in terms of clause 4.3, there shall at
all times be 3 (three) Trustees in office for the valid exercise of the powers
and discharge of the duties of the Trustees in terms of this Trust Deed, a
majority of whom must be:

 

4.1.1.1.           Black People; and

 

4.1.1.2.           independent in accordance
with the listings Requirements of the JSE Limited from time to time.

 

4.1.2.                In the event that the
Codes or the Charter require the appointment of any additional trustees, the
Trustees shall ensure that the additional trustees are appointed in accordance
with the relevant provisions of Codes or Charter (as the case may be).

 

4.1.3.                The Trustees shall be
appointed as follows:

 

4.1.3.1.           2 (two) shall be appointed,
removed and replaced by the Employee Beneficiaries; and

 

4.1.3.2.           1 (one) shall be appointed,
removed and replaced by the Board.

 

4.1.4.                The Beneficiaries
acknowledge that in terms of the JSE Limited listing Requirements, until such
time as the independent Trustees have been appointed, the Trustees shall not be
entitled to vote any of the Scheme Shares.

 

4.2.          Company Appointed Trustee

 

4.2.1.                It is recorded that
Seadimo Hessie Chaba is the Company Appointed Trustee in terms of clause
4.1.3.2 and also the First Trustee of the Trust. Seadimo Hessie Chaba by her
signature to this Trust Deed, accepts her appointment as such and undertakes to
carry out all the duties, functions and obligations incumbent upon her as soon
as letters of authority have been issued to him/her by the Master.

 

4.2.2.                The Company shall from
time to time on written notice to the Trustees be entitled to remove and
replace the Trustee so appointed, and the Trustees shall procure such
appointment, removal and replacement.

 

 

4.3.          Elected
Trustees

 

4.3.1.                As soon as practicable
after the Initial Vesting, but in any event within 6 (six) months thereof, the
First Trustee shall procure that the Employee Beneficiaries shall have the
opportunity to elect their Trustees referred to in clause 4.1.3.1 from a
list containing the names of persons who have been nominated by Employee
Beneficiaries as candidates, who comply with the applicable requirements of
this clause 4 (Trustees) and
who are not disqualified in terms of clause 4.4 (“Qualification,
Disqualification and Further Election of Trustees”) (“Candidates”), in accordance with procedures to be determined
by the Board from time to time, which procedures shall not entitle the Board to
veto the nomination of any Candidate.

 

4.3.2.                The First Trustee
shall send a written notice to each Employee Beneficiary, requesting him to
vote for the appointment as Trustee of 2 (two) Candidates.  Each Employee Beneficiary who wishes to vote
for a Candidate shall address his vote or votes to the First Trustee by
returning such notice, stating the name of the Candidate/s for whom he is
voting.

 

4.3.3.                The First Trustee
shall count the votes received from Employee Beneficiaries, which count shall
be verified by the Auditors, and thereafter the First Trustee shall notify the
Employee Beneficiaries of the Candidates who have been elected in terms of this
clause 4.3.

 

4.3.4.                Should the Master refuse
to grant letters of authority to a Trustee, or require that security be
provided by a Trustee, the Trustee concerned shall not qualify as a Trustee of
this Trust and in such event, the First Trustee shall identify the Candidate
who received the next most votes in the election in terms of this
clause 4.3, and such Candidate shall be put forward to the Master to
replace the disqualified Candidate.  The
same process shall be followed if the Master refuses to grant letters of
authority to, or requires security from, such alternate Candidate.

 

4.3.5.                The Trustees in office
from time to time shall ensure that an election of the Elected Trustees shall
take place at 3 (three) year intervals, mutatis mutandis, on the basis set out
in the other provisions of this clause 4.3, provided that if no
nominations are made by Eligible Employees, or in the case of nominations no
votes are cast in respect of any Candidates, then the Elected Trustees shall
remain in office for the next period of 3 (three) years.

 

4.3.6.                Employee Beneficiaries
constituting not less than 30% (thirty per cent) in number of all the Employee
Beneficiaries at the relevant time, may, by notice in 

 

 

writing to the
Trustees (“Requisition Notice”), requisition
that a meeting of Employee Beneficiaries be convened by the Trustees for the
purposes of considering a resolution or resolutions to remove the Elected
Trustee then in office.  The Requisition
Notice shall detail the name of the Elected Trustee, the removal of whom will
be considered at the meeting of Employee Beneficiaries and the reasons for
requiring the removal of the Elected Trustee. 
As soon as practicable after receipt of a Requisition Notice, the
Trustees shall convene a meeting of Employee Beneficiaries mutatis
mutandis in accordance with the provisions of clause 20 (Meetings of Beneficiaries), save that:

 

4.3.6.1.             not
less than 21 (twenty-one) clear days’ written notice of such meeting shall be
given 

to the
Employee Beneficiaries and to the Elected Trustee;

 

4.3.6.2.             such
notice shall set out the reasons advanced by the Employee Beneficiaries for the

removal
of the Elected Trustee as set out in the Requisition Notice; and

 

4.3.6.3.             in
order for a resolution for the removal of an Elected Trustee to be validly
passed and 

effective
at such meeting, such resolution must be passed by more than 50% (fifty per 

cent)
of the votes cast in terms of clause 20.2.7 by Employee Beneficiaries present
in 

person
or by proxy and voting at such meeting.

 

4.4.          Qualification,
Disqualification and Further Election of Trustees

 

4.4.1.                Subject to the
provisions of this clause 4 (Trustees),
Employee Beneficiaries shall all be eligible for appointment as a Trustee.

 

4.4.2.                Notwithstanding
anything to the contrary contained in this clause 4 (Trustees):

 

4.4.2.1.             the
following persons shall be disqualified from acting as Trustee, and any Trustee
in 

office
from time to time that falls to be disqualified in terms hereof, shall be
deemed 

to have
ipso facto resigned:

 

4.4.2.1.1.               any
person who would be disqualified from acting as a director of a company in
terms of the Companies Act;

 

4.4.2.1.2.               any
person removed from any office of trust on account of misconduct;

 

 

4.4.2.1.3.               any
person whose estate has been sequestrated and has not yet been rehabilitated;

 

4.4.2.1.4.               any
person who has been declared by a competent court to be mentally ill or
incapable of managing his own affairs or if he is by virtue of the Mental
Health Act, 1973, detained as a patient in an institution or as a state
patient;

 

4.4.2.1.5.               any
person who has been convicted in South Africa or elsewhere of any offence of
which dishonesty is an element or of any other offence for which he has been
sentenced to either imprisonment without the option of a fine or a fine in
excess of R5 000,00 (five thousand rand);

 

4.4.2.1.6.               any
person who has been dismissed from the employ of any Group Company for any
reason whatsoever; and

 

4.4.2.1.7.               any
person whose appointment would in any way adversely impact the points which the
Company may otherwise have been entitled to earn under the generic scorecard of
the Codes and/or Charter (as the case maybe).

 

4.4.3.                The office of a
Trustee shall be automatically vacated if:

 

4.4.3.1.             he
becomes disqualified in terms of clause 4.4.2.1;

 

4.4.3.2.             he
resigns his office by not less than 60 (sixty) days (or such shorter period as
the 

remaining
Trustees may agree to) written notice to the remaining Trustees;

 

4.4.3.3.             he
dies;

 

4.4.3.4.             his
term of office as such shall have expired;

 

 

4.4.3.5.             in
the case of a Company Appointed Trustee, he is removed from office by the 

Company
in terms of clause 4.2.2; or

 

4.4.3.6.             in
the case of an Elected Trustee, he is removed from office by a resolution of
the 

Employee
Beneficiaries at a meeting of Employee Beneficiaries convened in terms of 

clause 4.3.6.

 

 

4.4.4.                If a Trustee who is an
Eligible Employee, resigns from the employ of the Group during his term in
office he shall be deemed to have resigned as Trustee on the date on which his
employment with the Group terminates and he shall automatically cease to hold
office as such.

 

4.4.5.                If the office of an
Elected Trustee is vacated for any reason whatsoever, then the remaining
Trustees shall as soon as possible thereafter cause elections to be held in
terms of clause 4.3 to elect a new Elected Trustee.

 

4.4.6.                No Trustee shall have
the right during his lifetime or by last will to appoint his successor or an
alternate Trustee to serve as Trustee in his place and stead.

 

5.             PROCEEDINGS OF TRUSTEES

 

5.1.          Any Trustee is at all times
entitled to convene a meeting of the Trustees by giving 14 (fourteen) days’
written notice to the other Trustees, or such shorter notice as may be agreed
by all of them in writing.

 

5.2.          The Trustees shall meet
together for the dispatch of business, adjourn and otherwise regulate their
meetings as they deem fit.

 

5.3.          The Trustees may participate
in a meeting of the Trustees by means of conference telephone or similar
equipment by means of which all persons participating in the meeting can hear
each other and any such participation in a meeting shall constitute presence in
person at the meeting.

 

5.4.          Save at the time prior to
the appointment of the first Elected Trustee in terms of clause 4.3, all the
Trustees shall constitute a quorum for the
purposes of meetings of the Trustees.

 

5.5.          Save as may be expressly
otherwise provided in this Trust Deed or the Statutes, decisions to be taken by
the Trustees present at a meeting of Trustees shall take place by unanimous
consent.

 

5.6.          A resolution in writing
signed by all the Trustees shall be valid and effectual as if it had been
passed at a meeting of the Trustees duly called and constituted, and such
resolution may be signed in counterparts and shall have effect from the date of
the last Trustee’s signature.

 

5.7.          The Trustees shall keep
minutes of their meetings in writing and all resolutions passed by the Trustees
shall be duly signed by all Trustees.

 

6.             POWERS OF TRUSTEES

 

6.1.          Subject to the restrictive
covenants as set out in clause 9 (Restrictive Covenants),
the Trustees shall have the power and authority to achieve the intents, objects
and purposes of 

 

 

the Trust to
do whatever may be effected by a natural person who is a major in relation to
his own affairs and as may be necessary for, or incidental to, the carrying out
of their duties as set out in this Trust Deed, and such powers to do all things
necessary to exercise the rights and perform the obligations of the Trust.  Without derogating from the generality of the
foregoing, the Trustees shall have the following specific powers:

 

6.1.1.                to open and operate (either themselves or by a person/s authorised
by them) bank accounts in the name of the Trust with any bank without any
overdraft facility available in respect thereof, to draw, accept, make or
endorse cheques, bills of exchange or promissory notes for and on behalf of the
Trust;

 

6.1.2.                to make any investments with the relevant member of the Group in
accordance with clause 15;

 

6.1.3.                to subscribe for the Subscription Shares  in
accordance with clause 9.3 (Subscription),
but to hold them only as an investment and never to trade in them, otherwise
than as provided for in this Trust Deed;

 

6.1.4.                to exercise or to
procure the exercise of the voting powers or other rights attached to the
Scheme Shares and Other Assets, as determined in accordance with clause 22 (Voting of Scheme Shares);

 

6.1.5.                to distribute
Dividends, Scheme Shares and Other Assets to the Beneficiaries in accordance
with the terms of this Trust Deed;

 

6.1.6.                to pay Costs and taxes out of Dividends in respect of Available
Scheme Shares and Other Available Assets;

 

6.1.7.                to delegate any of their rights, obligations, functions and powers
set out in this Trust Deed to a person or entity (including the Administrator)
who is approved in writing by the Board;

 

6.1.8.                to employ any professional or other person as the Trustees, acting
reasonably and prudently, may decide, to provide professional services to the
Trust and to take and act upon any professional advice so obtained, provided
that the Trustees have obtained the pre-approval in writing of the Company’s
audit committee for an appointment by the Trustees of the Auditors for any
non-audit services;

 

6.1.9.                to receive any distributions by reason of the Scheme Shares and the
Other Assets;

 

6.1.10.              to comply with any exercise by the Company of the Repurchase Right;

 

 

6.1.11.              to keep books of account
of all transactions and proper records of the affairs of the Trust;

 

6.1.12.              to deal with any
Corporate Action on the basis set out in this Trust Deed;

 

6.1.13.              to appear wherever
necessary and there to sign all documents and generally to do all things
required to give effect to the terms of this Trust Deed; and

 

6.1.14.              to exercise such further
rights, powers and authorities as may from time to time be conferred upon them
by resolution of the Board.

 

6.2.          The Elected Trustees shall
have the power to employ any professional person as the Elected Trustees may
any time reasonably require to enable them to perform their powers, duties and
functions under this Trust Deed, and the Trust shall bear the reasonable costs
of employing such professional person.

 

6.3.          Without prejudice to any of
the foregoing, the Trustees shall have:

 

6.3.1.                full capacity to
contract on behalf of the Trust, subject always to such limitations, if any, as
may be imposed by this Trust Deed, provided that they shall under no
circumstances, subject to the Statutes, be personally liable on any such
contract; and

 

6.3.2.                locus standi in
judicio and be capable of bringing, defending,
opposing, withdrawing, settling and/or otherwise acting on behalf of the Trust
in connection with any proceedings whatsoever in or before any court, or in any
arbitration, or before any other forum, provided that all costs reasonably
incurred by them in that regard shall be for the account of the Trust.

 

6.4.          All deeds, documents or
instruments required to be executed by the Trustees shall be deemed to have
been validly executed, if executed by all the Trustees.

 

7.             DUTIES OF TRUSTEES

 

7.1.          The Trustees shall establish
a register in which they shall record, in respect of each Employee Beneficiary,
at least the following:

 

7.1.1.                the number of Scheme
Shares and identity of Other Assets in respect of which he has Vested Rights
from time to time;

 

7.1.2.                the number of Scheme
Shares and identity of Other Assets in respect of which Vested Rights still
need to be granted to him if the proviso in clause 13.3.1.2 is applicable
to such New Eligible Employee;

 

 

7.1.3.                the date of commencement of his employment, where such Employee
Beneficiary is a New Eligible Employee;

 

7.1.4.                any forfeitures of Vested Rights, which shall be entered into the
Register as soon as possible after the forfeiture occurs;

 

7.1.5.                the date of termination of his Employment By the Group;

 

7.1.6.                the reason for termination of his Employment By the Group; and

 

7.1.7.                details of all distributions of Dividends, after deduction of an
amount to cover Specific Taxation and Expenses, and/or Scheme Shares and/or
Other Assets made to him in terms of this Trust Deed.

 

7.2.          The Trust shall hold the Scheme Shares and Other Assets in
accordance with the provisions of this Trust Deed for the ultimate benefit of
the Beneficiaries, but subject to the Repurchase Right.

 

7.3.          The Trustees shall not incur liabilities other than liabilities
(including, without limitation, audit fees and liabilities in respect of tax)
that they are obliged to incur in terms of any applicable law, or as
specifically permitted by this Trust Deed.

 

7.4.          The Trustees shall not make any distributions to Beneficiaries in a
manner other than that specified in this Trust Deed.

 

7.5.          The Trustees shall procure, insofar as they are able, that all
circulars, letters and other documents issued to shareholders of the Company
are made available to Employee Beneficiaries, on written request, at the
Company’s registered office during normal business hours.

 

7.6.          The Trustees shall procure that the Trust Deed is available on
written request to any Employee Beneficiary in an official language in which
that Employee Beneficiary is familiar, provided that the English version of the
Trust Deed shall prevail over any other translated version of the Trust Deed.

 

8.             PRIVILEGES OF THE
TRUSTEES

 

8.1.          The Trustees shall be exempt
from any obligation to furnish security in connection with their appointment
and/or for the due administration of the Trust to the Master or any other
person, body or authority.

 

8.2.          Subject to the Statutes:

 

 

8.2.1.                no Trustee shall be liable to make good to the Trust or any
Beneficiary any loss occasioned or sustained by any cause, howsoever arising,
except such losses as may arise from or be occasioned by his own personal
dishonesty or other wilful misconduct or gross negligence;

 

8.2.2.                no Trustee shall be liable for any act of dishonesty or other
misconduct committed by any other Trustee unless he knowingly allowed it or was
an accessory to such dishonesty or other misconduct;

 

8.2.3.                the Trustees shall be indemnified out of the assets of the Trust
against all claims and demands of whatsoever nature that may be made upon them
arising out of the exercise or purported exercise of any of the powers hereby
conferred upon them.

 

8.3.          The
Trustees shall be reimbursed for all reasonable and necessary expenses incurred
by them on behalf of, or for the benefit of, the Trust.

 

8.4.          Trustees
who are not employees of the Group shall be entitled to be remunerated for
their services as such and such remuneration shall be determined by the Board
from time to time.

 

9.             SUBSCRIPTION FOR SCHEME
SHARES

 

9.1.          Suspensive
Conditions to the Subscription

 

The Subscription shall be conditional on the
fulfilment of the following suspensive conditions within 12 (twelve) months of
the registration of this Trust Deed by the Master, namely that:

 

9.1.1.                the Board has adopted
a resolution approving the Subscription; and

 

9.1.2.                the Shareholders in
general meeting have passed the necessary resolutions approving the transaction
contemplated in this Trust Deed and the registration of any of such resolution
as may be a special resolution.

 

9.2.          Pre-conditions
of the Subscription

 

As a pre-condition of the Subscription, each of the
Subscription Shares to be subscribed, and each Non Elective Capitalisation
Share to be awarded to the Trust, shall not be entitled to the declaration and
receipt of:

 

9.2.1.                50% (fifty percent) per Scheme Share of dividends declared in the
ordinary course (which shall not include what is described by the Board as a
special, extraordinary or abnormal dividend or distribution) in respect of any
other Share held by a Shareholder other than the Trustees and the trustees of
the Sasol Inzalo Management Scheme and the Sasol Inzalo Foundation; and

 

 

9.2.2.                100% (one hundred per
cent) per Scheme Share of what is described by the Board as a special,
extraordinary or abnormal dividend or distribution made by the Company in
respect of any other Share held by a Shareholder other than the Trustees and
the trustees of the Sasol Inzalo Management Scheme and the Sasol Inzalo
Foundation.

 

9.3.          Subscription

 

Subject the fulfilment of the Suspensive Conditions,
within 20 (twenty) Business Days after the receipt by the Trust of the capital
contribution referred to in clause 3.2, the Company shall issue to and the
Trust shall subscribe for the Subscription Shares in consideration for the
Subscription Price and the Company shall against receipt thereof allot and
issue the Subscription Shares to the Trust.

 

10.           RESTRICTIVE COVENANTS

 

10.1.        The Trust shall, unless and to
the extent that the Company may otherwise in writing agree, not:

 

10.1.1.              save for the Scheme
Shares and Other Assets, acquire any other asset except for holding cash;

 

10.1.2.              pledge, cede in
security, mortgage or otherwise hypothecate or encumber any Scheme Shares or
Other Assets or any of the rights attached to the Scheme Shares;

 

10.1.3.              except in accordance
with the provisions of this Trust Deed, Dispose of or enter into any contract
to Dispose of any Scheme Shares (whether or not they are listed) or any Other
Assets or any of the rights attached thereto; or

 

10.1.4.              enter into any agreement
in respect of the votes attached to any of the Scheme Shares or any of the
other rights attached to the Scheme Shares.

 

10.2.        The Company shall not register
any transfer of Scheme Shares made in breach of this Trust Deed.

 

11.           BOOKS OF ACCOUNT AND
AUDITORS

 

11.1.        The Trustees shall keep true
and correct records and books of account of their administration of the Trust
in such manner and form as is necessary in order that the records and books
shall at all times fairly reflect the position of the Trust.  There shall be recorded in such records and
books of account, inter alia, any change of the
Trust assets from time to time and the income and/or the expenses applicable to
the administration of the Trust.

 

 

11.2.        Such records and books of account, together with all other papers
and documents connected with or relating to the Trust, shall be kept at the
office of the Administrator.

 

11.3.        The Trustees shall be entitled to appoint and remove the Auditors
subject to the prior written consent of the Board.

 

11.4.        The Auditors, the Board and all Employer Company Boards shall have
the right of access at all times to the books and records of the Trust.  The Auditors, the Board and the Employer
Company Boards shall each be entitled to demand from the Trustees such
information and explanations as the Board or Employer Company Board may
reasonably require and in the case of the Auditors, as may be necessary for the
performance of their duties as Auditors.

 

11.5.        The Trustees shall:

 

11.5.1.              ensure that the books of
account of the Trust are prepared in accordance with the Company’s accounting
policy from time to time and International Financial Reporting Standards
stipulated from time to time by the International Accounting Standards Board
(or its successor body) and that such books of account are audited in
accordance with international standards on auditing; and

 

11.5.2.              annually cause financial
statements to be prepared and the financial statements so prepared to be
audited by the Auditors.

 

12.           DAY-TO-DAY ADMINISTRATION
AND COSTS AND EXPENSES OF THE TRUST

 

12.1.        The day-to-day administration
of the affairs of the Trust shall, at the election of the Board, be undertaken
on behalf of the Trustees by the Company itself, or by an independent person
appointed, removed and replaced from time to time by the Trustees.

 

12.2.        All Costs and taxes of the
Trust shall be borne by the Trust out of dividends received in respect of
Available Scheme Shares and Other Available Assets and all interest received by
the Trustees.  If there is any shortfall
the Company shall pay same to the Trust by way of a capital contribution.  No Other Available Assets received by the
Trust may be utilised to discharge Costs and taxes.

 

12.3.        For the avoidance of doubt, it
is recorded that the Trust shall not be responsible for any costs (including,
without limitation, Specific Taxation and Expenses) in respect of any right
exercised by an Employee Beneficiary or benefit distributed to the Employee
Beneficiary under this Trust Deed.

 

 

13.           VESTINGS

 

13.1.        Eligible
Employees

 

13.1.1.              Nothing in this clause
13 (Vestings), should be construed as
conferring an automatic right upon an Eligible Employee to become an Employee
Beneficiary.

 

13.1.2.              The Board shall be
entitled, in its sole discretion, by written notice to the Trustees to amend
and/or replace schedule “A”.

 

13.2.        Initial
Vestings

 

13.2.1.              The Board in respect of
Eligible Employees in its employ and any Employer Company Board in respect of
Eligible Employees in its employ shall as soon as possible after the
Commencement Date deliver to the Trustees an Initial Vesting Notice:

 

13.2.1.1.         detailing the particulars of
the Eligible Employees who qualify to become Employee Beneficiaries with effect
from the Effective Date; and

 

13.2.1.2.         instructing the Trustees to
notify in writing within the period specified in the Initial Vesting Notice,
each Eligible Employee referred to in clause 13.2.1.1 that it is the intention
of the Trustees to make him an Employee Beneficiary under the Trust Deed
(unless he notifies the Trustees in writing within 30 (thirty) days of the date
of the written notification, that he does not wish to become an Employee
Beneficiary) as a result of which Vested Rights will vest in him in terms of
this Trust Deed with effect from the Effective Date, including the right in the
circumstances expressly provided for in this Trust Deed to direct the Trustees
as to the manner in which they should vote the Scheme Shares and shares
comprising Other Assets in respect of which he has a Vested Right at the
relevant time.

 

 

13.2.2.              On
receipt of the Initial Vesting Notice, the Trustees shall comply with the
provisions of clause 13.2.1.2 .  Unless
an Eligible Employee to whom a notice in terms of clause 13.2.1.2 is sent
has timeously notified the Trustees in writing that he did not wish to accept
his Initial Vesting, the Trustees shall be obliged to enter his name in the
Register and such Eligible Employee shall thereby, with effect from the
Effective Date, become an Employee Beneficiary.

 

 

13.3.        Subsequent
Vestings

 

13.3.1.              During the period of 5
(five) years commencing from the Subscription Date, the Board in respect of
Eligible Employees in its employ and any Employer Company Board in respect of
Eligible Employees in its employ may deliver to the Trustees a notice in
writing (“Subsequent Vesting Notice”):

 

13.3.1.1.         detailing the particulars of the New Eligible Employees who qualify to become
Employee Beneficiaries with effect from the Effective Date;

 

13.3.1.2.         detailing the number of Scheme
Shares (and the Other Assets (excluding cash received by virtue of Dividends
already declared) which arose by virtue of those Scheme Shares) in respect of
which Vested Rights are intended to be granted, provided that, subject to
clause 13.3.1.3, the maximum number of Scheme Shares and Other Available Assets
per New Eligible Employee in respect of which Vested Rights are intended to be
granted, shall be:

 

13.3.1.2.1.               90%
(ninety per cent) of the Designated Number of Scheme Shares and Other Available
Assets for New Eligible Employees employed during the first year after the
Subscription Date;

 

13.3.1.2.2.               80%
(eighty percent) of the Designated Number of Scheme Shares and Other Available
Assets for New Eligible Employees employed during the second year after the
Subscription Date;

 

13.3.1.2.3.               70%
(seventy percent) of the Designated Number of Scheme Shares and Other Available
Assets for New Eligible Employees employed during the third year after the
Subscription Date;

 

13.3.1.2.4.               60%
(sixty percent) of the Designated Number of Scheme Shares and Other Available
Assets for New Eligible Employees employed during the fourth year after the
Subscription Date; and

 

13.3.1.2.5.               50%
(fifty percent) of the Designated Number of Scheme Shares and Other Available
Assets for New Eligible Employees employed during the fifth year after the
Subscription Date;

 

 

13.3.1.3.         if there are not any or
sufficient Available Scheme Shares and Other Available Assets in any one year
for every New Eligible Employee in respect of whom a Subsequent Vesting Notice
has been given, to be vested with Vested Rights in respect of the number of
Scheme Shares applicable to him determined in accordance with clause 13.3.1.2 (“Maximum Number”):

 

13.3.1.3.1.               those New Eligible Employees who were
employed (“First New Eligible Employees”):

 

13.3.1.3.1.1.            in an earlier year referred to in
clauses 13.3.1.2.1 to 13.3.1.2.5 than other New Eligible Employees, in
respect of whom a Subsequent Vesting Notice has been given (“Later New Eligible Employees”), shall rank ahead;

 

13.3.1.3.1.2.            in the same year referred to in
clauses 13.3.1.2.1 to 13.3.1.2.5 as other First Eligible New Employees,
shall rank pari passu,

 

as and when
further Available Scheme Shares and Other Available Assets become available for
the grant of Vested Rights until such time as the Maximum Number has been
granted to the First New Eligible Employees, and so on until all New Eligible
Employees, in respect of whom a Subsequent Vesting Notice has been given, have,
to the extent possible having regard to the Available Scheme Shares and Other
Available Assets from time to time, been granted Vested Rights in respect of
the Maximum Number of Scheme Shares;

 

13.3.1.3.2.               New
Eligible Employees who have not been granted Vested Rights in respect of the Maximum
Number of Scheme Shares and Other Available Assets by the Final Date, shall
with effect from that date forfeit the right to be granted any further Vested
Rights;

 

 

13.3.1.4.               instructing
the Trustees to notify in writing within the period specified in the Subsequent
Vesting Notice, each New Eligible Employee referred to in clause 13.3.1.1 that
it is the intention of the Trustees to make him an Employee Beneficiary under
the Trust Deed (unless he notifies the Trustees in writing within 30 (thirty) days
of the date of the written notification, that he does not wish to become an
Employee Beneficiary) as a result of which Vested Rights will vest in him in
terms of this Trust Deed with effect from the Effective Date.

 

13.3.2.              On receipt of the
Subsequent Vesting Notice, the Trustees shall comply with the provisions of
clause 13.3.1.

 

13.3.3.              Unless a New Eligible
Employee to whom a notice in terms of clause 13.3.1.4 is sent, timeously
notified the Trustees in writing that he did not wish to accept his Subsequent
Vesting the Trustees shall be obliged to enter his name in the Register and
such New Eligible Employee shall thereby, with effect from the Effective Date,
become an Employee Beneficiary.

 

14.           DIVIDENDS

 

14.1.        Except where an Employee
Beneficiary has forfeited the right thereto in terms of the provisions of this
Trust Deed, each Employee Beneficiary shall have the Vested Right to the
distribution of the Designated Percentage of the Dividends.

 

14.2.        All Dividends received by the
Trust, the rights to which have vested in any New Eligible Employee as a result
of any Subsequent Vesting, after the Effective Date but before the New Eligible
Employee’s details are entered into the Register will remain in the Trust and
will be distributed to him as soon as reasonably possible after his details
have been entered into the Register.

 

14.3.        All Dividends received by the
Trust in respect of Available Scheme Shares and Other Available Assets:

 

14.3.1.              will be utilised to cover all Costs; and

 

14.3.2.              if any amount remains thereafter, may be distributed by the Trustees
in their discretion to the Residual Beneficiary on an ad hoc
basis, failing which the Trustees shall distribute them to the Residual
Beneficiary as soon as possible after the Final Date.

 

14.4.        No Other Available Assets
received by the Trust may be used for this purpose.

 

 

14.5.        Except as otherwise
specifically provided in terms of this Trust Deed, distributions of any part of
Dividends to Employee Beneficiaries entitled thereto, shall be effected as soon
as reasonably possible after receipt thereof by the Trust.

 

14.6.        Notwithstanding the date of
receipt thereof by the Trust, the Dividends referred to in clause 1.3.27.2
shall be distributed to Employee Beneficiaries at the same time as the
Dividends referred to in clause 1.3.27.1 are distributed to Employee
Beneficiaries.

 

15.           INVESTMENT OF CASH

 

Any available cash of the Trust shall be invested with
Sasol Financing (Proprietary) Limited or its successors-in-title as the
financier member of the Group, for the benefit of the Trust, provided that the
interest rates payable to the Trust in respect of such investment is at least
market-related rates.

 

16.           RESTRICTIVE COVENANTS: EMPLOYEE BENEFICIARIES

 

16.1.        Notwithstanding anything to
the contrary contained in this Trust Deed, Employee Beneficiaries shall not be
entitled to:

 

16.1.1.              pledge, cede in security, mortgage or otherwise hypothecate or encumber
any Vested Rights;

 

16.1.2.              Dispose of or enter into
any contract to Dispose of any of their Vested Rights;

 

16.1.3.              other than as set out in
clause 20.2.6, enter into any agreement in respect of the votes in respect of
which they have Vested Rights; or

 

16.1.4.              Dispose of any Scheme
Share which has been distributed to him/her in terms of the Trust Deed until after
the expiry of a period of 7 (seven) days from the Distribution Date.

 

17.           REPURCHASE, DISTRIBUTION AND FORFEITURE OF SHARES

 

17.1.        Repurchase of
Shares

 

17.1.1.              Within a period of 60
(sixty) days prior to the Final Date, the Company shall by written notice to
the Trustees be entitled to repurchase from the Trust a maximum of that number
of Scheme Shares as is determined in terms of the Repurchase Formula (“Repurchase Shares”) in which event a Repurchase shall be
deemed to have been concluded on the following terms:

 

17.1.1.1.         the effective date of the Repurchase shall be the date on which the
Company gives its written notice exercising the Repurchase Right;

 

 

17.1.1.2.         the purchase price for each Repurchase Share shall be the Subscription
Price; and

 

17.1.1.3.         the purchase price shall be payable by the Company against delivery of
the relevant documents of title for the Repurchase Shares, which the Trustees
shall deliver within 7 (seven) days after the exercise of the Repurchase Right;

 

17.1.1.4.         the Repurchase Shares shall
be purchased voetstoots and without any warranties of any nature save that the
Trust is the owner thereof and that the Repurchase Shares are not subject to
any pledge, cession in security, mortgage or any other encumbrance.

 

17.1.2.              As regards any
Repurchase Shares purchased by the Company, each Beneficiary shall forfeit any
Vested Rights whether pursuant to an Initial Vesting or a Subsequent Vesting as
regards such number of Scheme Shares as is equal to the Designated Percentage
applied to the total number of Repurchase Shares.

 

17.2.        Distribution of Scheme Shares and Other Assets to
Employee Beneficiaries after the Final Date arrives

 

Each Employee Beneficiary as at the Final
Date shall be entitled to the distribution by the Trustees, subject to the
provisions of clause 25, of the Designated Percentage of that number of Scheme
Shares and the Designated Percentage of the Other Assets remaining after the
Repurchase.

 

18.           DISTRIBUTION OF SCHEME SHARES AND OTHER ASSETS TO RESIDUAL BENEFICIARY

 

The
Residual Beneficiary, shall have the vested right to, and accordingly be
unconditionally entitled to the distribution after the Final Date, subject to
the provisions of clauses 14.3 and 25.5, of the Scheme Shares and any Other
Assets, including any interest received by the Trust, remaining after giving
effect to the provisions of clause 17 (Repurchase,  Distribution and Forfeiture of Shares).

 

19.           CESSATION OF EMPLOYMENT OF EMPLOYEE BENEFICIARIES

 

19.1.        Cessation of Employment by Reason of Death

 

If an Employee Beneficiary ceases to be employed by
the Group by reason of his death at any time prior to the Final Date, then the
Employee Beneficiary’s nominated beneficiaries under the Company’s Pension Fund
Scheme, or in the absence of any such nominations, the Employee Beneficiary’s
heirs shall be treated as the Employee Beneficiary in respect of the deceased
Employee Beneficiary’s Beneficiary Balance until the Final Date.

 

 

19.2.        Cessation of Employment with the Group by reason
of Retirement, Retrenchment or by virtue of s197 of the LRA

 

19.2.1.              An Employee Beneficiary
shall not cease to be an Employee Beneficiary because he ceases to be employed
by an Employer Company by reason of his Retirement, as a result of a
retrenchment or as a result of the application of section 197 of the LRA (“Retired/Retrenched/Transferred
Employee”).

 

19.2.2.              If a
Retired/Retrenched/Transferred Employee is re-employed by the Group within a
period of 5 (five) years from the Subscription Date, then the
Retired/Retrenched/Transferred Employee will be deemed to be a New Eligible
Employee and will be entitled, at the discretion of the Board in respect of
Eligible Employees in its employ, or the Employer Company Board in respect of
Eligible Employees in its employ, to participate in Subsequent Vestings under
clause 13.3.

 

19.3.        Cessation of Employment by reason of resignation

 

19.3.1.              If an Employee
Beneficiary ceases to be employed by the Group by reason of his resignation (“Resigned Employee”):

 

19.3.1.1.         during the Forfeiture Period,
the Resigned Employee shall, ipso facto,
with effect from the date of his resignation forfeit, for no consideration, his
entire Vested Rights (excluding his right to any distribution contemplated in
clause 14.1 of a portion of Dividends received by the Trust prior to his
resignation but not distributed by that date) and cease to be an Employee
Beneficiary under the Trust;

 

 

19.3.1.2.         after the Forfeiture Period, the Resigned Employee shall, ipso facto, with effect from the date of his resignation
forfeit, for no consideration:

 

19.3.1.2.1.               70%
(seventy percent) of the Beneficiary Balance if he resigned at any time during
the first year after the Forfeiture Period;

 

19.3.1.2.2.               60%
(sixty percent) of the Beneficiary Balance if he resigned at any time during
the second year after the Forfeiture Period;

 

 

19.3.1.2.3.               50%
(fifty percent) of the Beneficiary Balance if he resigned at any time during
the third year after the Forfeiture Period;

 

19.3.1.2.4.               40%
(forty percent) of the Beneficiary Balance if he resigned at any time during
the fourth year after the Forfeiture Period;

 

19.3.1.2.5.               30%
(thirty percent) of the Beneficiary Balance if he resigned at any time during
the third year after the Forfeiture Period;

 

19.3.1.2.6.               20%
(twenty percent) of the Beneficiary Balance if he resigned at any time during
the second year after the Forfeiture Period;

 

19.3.1.2.7.               10%
(ten percent) of the Beneficiary Balance if he resigned at any time during the
first year after the Forfeiture Period,

 

including his right to any distribution contemplated in clause 14.1 of a
portion of Dividends received by the Trust prior to his resignation but not
distributed by that date.

 

19.3.1.3.         An Employee Beneficiary shall
retain his Vested Rights which are not forfeited under this clause 19.3.1.2.

 

19.3.2.              If a Resigned Employee
is re-employed by the Group within a period of 5 (five) years from the
Subscription Date, then the Resigned Employee will be deemed to be a New
Eligible Employee and will be entitled, at the discretion of the Board in
respect of its Eligible Employees, and Employer Company Board in respect of its
Eligible Employees to participate in Subsequent Vestings under clause 13.3.

 

19.4.        Cessation of
Employment by Reason of Dismissal

 

19.4.1.              Subject to clause 19.4.2
if an Employee Beneficiary ceases to be employed at any time prior to the Final
Date by the Group by reason of his dismissal (other than for reasons of
retrenchment), such dismissed Employee Beneficiary shall, ipso facto,
with effect from the date of his dismissal forfeit, for no consideration, his
entire Vested Rights (including his right to any distribution contemplated in
clause 14.1 of a portion of Dividends received by the Trust prior to the
date of his dismissal but not distributed by that date) and cease to be an
Employee Beneficiary under the Trust.

 

 

19.4.2.              If the dismissal of an
Employee Beneficiary is found by one of the CCMA, a Bargaining Council having
jurisdiction or the Labour Court to have been substantively unfair and such
decision is either not challenged by the Employer Company or has been confirmed
on review by the Labour Court then the dismissed employee shall be re-instated
as an Employee Beneficiary with effect from the date of his dismissal and shall
with retrospective effect, be reinstated with the Vested Rights forfeited as a
result of the dismissal as if the forfeiture had never taken place.

 

19.4.3.              In the event that an
Employee Beneficiary is found to have been substantively unfairly dismissed as
described in 19.4.2 above but is not awarded reinstatement of his employment,
the Employee Beneficiary will be considered, for purposes of this Trust Deed,
to have resigned with effect from the date of his dismissal.

 

19.4.4.              The operation of 19.4.2
and 19.4.3 above shall not be suspended by any appeal that may be launched by
an Employer Company or former Employee Beneficiary to the Labour Appeal Court
or any other court.

 

19.4.5.              If a dispute is declared
regarding the substantive fairness of the dismissal of an Employee Beneficiary,
such Employee Beneficiary’s Vested Rights shall continue to be forfeited, but
the Scheme Shares and/or Other Assets which are the subject of the Vested
Rights shall not become Available Scheme Shares and/or Other Available Assets
if the provisions of clause 19.4.2 apply. 
If it is no longer possible for clause 19.4.2 to be invoked the
Vested Rights shall remain forfeited and the Scheme Shares in question shall
thereupon only from that date form part of the Available Scheme Shares and/or
Other Available Assets.

 

19.5.        Transfers
within the Group

 

Notwithstanding anything to the contrary contained
herein, an Employee Beneficiary who ceases to be employed by a Group Company
but is thereupon immediately employed by another Group Company, shall not for
the purposes of this clause 19 (Cessation of Employment of
Employee Beneficiaries) be deemed to have ceased to be employed by
the Group.

 

20.           MEETINGS OF BENEFICIARIES

 

20.1.        The Trustees shall procure
that meetings of the Beneficiaries are held at least once a year, and as and
when the Trustees deem fit.  At these
meetings the Trustees shall present to the Beneficiaries the annual financial
statements of the Trust and, to the extent they deem it necessary and
appropriate having regard to their fiduciary duties, shall seek the views of, 

 

 

 

consult with and where appropriate take directions from Beneficiaries in
respect of their interests held by the Trust.

 

20.2.        In respect of all meetings of
the Beneficiaries:

 

20.2.1.              such meetings shall be held at such suitable venue as the Trustees may
determine and obtain;

 

20.2.2.              the Trustees shall give not less than 14 (fourteen) days’ written
notice to all Beneficiaries, or such shorter notice as may be agreed by all the
Beneficiaries in writing;

 

20.2.3.              a minimum number of 50 (fifty) Employee Beneficiaries shall
constitute a quorum;

 

20.2.4.              if within
30 (thirty) minutes from the time appointed for a meeting a quorum is not
present, the meeting shall stand adjourned to a date to be determined by the
Trustees (which date shall not be earlier than 7 (seven) days and not
later than 14 (fourteen) days after the date of the meeting) at the same
time and place, (or if such place not be available, at such other place as the
Trustees may appoint), and all the Beneficiaries shall be notified in writing
of the date, time and place of the adjourned meeting.  If at such adjournment of
any such meeting a quorum is not present within 30 (thirty) minutes from
the time appointed for the adjourned meeting, those present at such meeting
shall constitute a quorum.  The
agenda for any adjourned meeting shall be the same agenda as for the meeting
which was originally scheduled;

 

20.2.5.              the meetings shall be
chaired by the Trustees on a rotational basis annually, with the Company
Appointed Trustee being the first chairperson for the first year from the
Commencement Date and one of the two Elected Trustees chosen by lot being the
second chairperson;

 

20.2.6.              each Beneficiary shall be entitled to appoint, in writing, a proxy to
represent him;

 

20.2.7.              each Beneficiary shall have 1 (one) vote for each Scheme Share in
respect of which at the relevant time he has Vested Rights; and

 

20.2.8.              the Trustees shall keep minutes of the meetings of Beneficiaries in
writing and such minutes and resolutions passed by the Beneficiaries shall be
duly signed by the Chairperson of the meeting and such minutes shall be
available on written request to any Beneficiary at the Trust’s domicilium address during normal business hours.

 

 

20.3.        Nothing contained in this
clause 20 (Meetings of Beneficiaries) shall
prevent the Trustees from exercising their discretion as Trustees.

 

21.           ENTITLEMENT OF EMPLOYEE
BENEFICIARIES TO REQUISITION MEETINGS

 

A
minimum number of 50 (fifty) Employee Beneficiaries, may, by notice in writing
to the Trustees, requisition a meeting of the Beneficiaries.  Such notice shall specify in detail the
matters which the Employee Beneficiaries wish to discuss at the meeting.  Subject to the provisions of clause 4.3.6.1,
as soon as practicable after receipt of such notice, the Trustees shall, save
as contemplated in clause 4.3.6.1, give not less than 14 (fourteen) days’
written notice to all Employee Beneficiaries of a meeting to be held to discuss
the matters specified in such requisition.

 

22.           VOTING OF SCHEME SHARES

 

22.1.        Where the Trustees are
required to vote on a proposed resolution of the shareholders of the Company (“Proposed Shareholders’ Resolution”) or with regard to the
acceptance of a take-over offer or scheme of arrangement contemplated in clause
23.1, 23.2, or 23.3, the Trustees shall within a reasonable period prior to
voting dispatch a written notice to the Employee Beneficiaries describing the
Proposed Shareholders’ Resolution or take-over offer or scheme of arrangement
and asking each of them to vote by written return by a date stipulated in the
notice how he directs the Trustees to exercise the voting rights attached to
the Scheme Shares in favour of, or against, the Proposed Shareholders’
Resolution take-over offer or scheme of arrangement contemplated in clause
23.1, 23.2, or 23.3.

 

22.2.        On receipt of all the written
returns, the Trustees shall count the votes in favour of and against the
Proposed Shareholders’ Resolution, as well as any non-returns and abstentions.

 

22.3.        The Trustees shall thereafter
vote on:

 

22.3.1.              the Proposed Shareholders’ Resolution as regards :

 

22.3.1.1.         the number of votes by
Employee Beneficiaries in favour of the Proposed Shareholders’ Resolution, by
voting the same number of Scheme Shares in favour of the Proposed Shareholders’
Resolution;

 

22.3.1.2.         the number of votes by
Employee Beneficiaries against the Proposed Shareholders’ Resolution, by voting
the same number of Scheme Shares against the Proposed Shareholders’ Resolution;
and

 

22.3.1.3.         the number of non-returns or
abstentions and in respect of any Scheme Shares not subject to Vested Rights,
as they in their 

 

 

discretion exercised jointly in accordance with the provisions of clause 5.5,
determine;

 

any take-over offer or scheme of arrangement contemplated in
clause 23.1, 23.2, or 23.3 as regards:

 

22.3.1.4.         the number of votes by
Employee Beneficiaries in favour of the scheme of arrangement or in favour of
accepting the take-over offer, by voting the same number of Scheme Shares in
that manner in favour of the scheme of arrangement or by accepting the
take-over offer, as the case may be;

 

22.3.1.5.         the number of votes by
Employee Beneficiaries rejecting the take-over offer or against the scheme of
arrangement, by rejecting the take-over offer or by voting the same number of
Scheme Shares in that manner, as the case may be; and

 

22.3.1.6.         the number of non-returns or abstentions and in respect of any Scheme
Shares not subject to Vested Rights, as they in their discretion exercised
jointly in accordance with the provisions of clause 5.5, determine.

 

22.3.2.              In the case of an offer
contemplated in clause 23.3 or 23.4 which permits the holder of the Scheme
Shares to make an election as to the proportion of cash and the proportion of
the Consideration Shares, the Trustees shall exercise that election in
accordance with the determination of a majority of the votes of the Employee
Beneficiaries exercised in accordance with the provisions of clause 20.2.7 at a
meeting convened in accordance with the provisions of clause 20 (Meetings of Beneficiaries).

 

23.           CORPORATE ACTION

 

23.1.        100%
acquisition of Company for cash consideration

 

23.1.1.              Should an offeror give
notice that it intends to propose a take-over offer or scheme of arrangement
(which shall for the avoidance of doubt include a scheme effected by way of a
share buy back by the Company) as a result of which the entire issued share
capital of the Company will be acquired in consideration only for cash, then
the Company shall from the date of gaining knowledge of the proposed take-over
offer or scheme of arrangement until the Business Day after the expiry of the
period contemplated in clause 23.1.1.2 , be entitled to effect a
Repurchase of the Scheme Shares on the following terms:

 

 

23.1.1.1.         the Repurchase shall occur
with effect from the date on which the Company gives written notice to the
Trust of its intention to effect the Repurchase, the intention being that the
Scheme Shares in question should not be the subject of the take-over or scheme
of arrangement, but shall be implemented only when the condition in
clause 23.1.1.2 is fulfilled;

 

23.1.1.2.         the Repurchase shall be subject to the fulfilment of the following
suspensive condition:

 

23.1.1.2.1.             in the case of the proposed scheme of
arrangement, the sanctioning thereof by the court; or

 

23.1.1.2.2.             in
the case of the proposed take-over offer, the acceptance thereof by the
requisite percentage of the Shareholders in order to make the take-over a
compulsory one;

 

23.1.1.3.         the number of Scheme Shares which the Company shall repurchase from the
Trust shall be determined in accordance with the Repurchase Formula, with the
market value of a Share being adjusted to the price offered per Share in the
Company by the offeror;

 

23.1.1.4.         the purchase price payable by the Company to the Trust shall be the
Subscription Price; and

 

23.1.1.5.         the purchase price shall be payable by the Company against delivery of
the relevant documents of title in respect of the Scheme Shares repurchased by
the Company from the Trust.

 

23.1.2.              If the proposed
take-over offer or scheme of arrangement is approved on the basis set out in
clause 23.1.1.2, then:

 

23.1.2.1.         as soon as reasonably
possible after the Company has effected the Repurchase referred to in clause
23.1.1, or if Sasol does not exercise such Repurchase Right, as soon as
reasonably possible after it lapses, but prior to the implementation of the
proposed scheme of arrangement or take-over offer, the Trust shall, in respect
of the remaining Scheme Shares, take all steps as are necessary to procure that
ownership in respect of the Designated Percentage thereof is passed to each
Employee Beneficiary; and

 

 

23.1.2.2.         the Trustees shall, thereafter, acting as an agent on behalf of each
Employee Beneficiary, release the Scheme Shares to the offeror.

 

23.1.3.              Having received, on
behalf of the Beneficiaries, all cash proceeds payable by the offeror in
respect of the Scheme Shares, the Trust shall distribute such proceeds on the
Distribution Date on the following basis:

 

23.1.3.1.         to each Employee Beneficiary, his Designated Percentage, from which
shall be deducted an amount to cover the Specific Taxation and Expenses; and

 

23.1.3.2.         the remainder, if any, to the Residual Beneficiary subject to clause
25.5,

 

and the Trustees
shall use the amounts deducted for Specific Taxation and Expenses to pay same.

 

23.2.        100%
acquisition of Company for consideration in shares

 

23.2.1.              Should an offeror give
notice that it intends to propose a take-over offer or scheme of arrangement
(which shall for the avoidance of doubt include a scheme effected by way of a
share buy back by the Company) as a result of which the entire issued share
capital of the Company will be acquired in consideration for Consideration
Shares, then the Company shall, from the date of gaining knowledge of the
proposed offer or scheme of arrangement until the Business Day after the expiry
of the period contemplated in clause 23.2.1.2 be entitled to effect a
repurchase of the Scheme Shares on the following terms:

 

23.2.1.1.         the Repurchase shall occur
with effect from the date on which the Company gives written notice to the
Trust of its intention to effect the Repurchase, the intention being that the
Scheme Shares in question should not be the subject of the take-over or scheme
of arrangement, but shall be implemented only when the condition in
clause 23.2.1.2 is fulfilled;

 

23.2.1.2.         the Repurchase shall be subject to the fulfilment of the following
suspensive condition:

 

23.2.1.2.1.               in the case of the proposed scheme of
arrangement, the sanctioning thereof by the court; or

 

 

23.2.1.2.2.               in
the case of the proposed take-over offer, the acceptance thereof by the
requisite percentage of the Shareholders in order to make the take-over a
compulsory one;

 

23.2.1.3.         the number of Scheme Shares which the Company shall repurchase from the
Trust shall be determined in accordance with the Repurchase Formula with the
market value of a Share being adjusted to take account of the value of the
relevant Consideration Shares;

 

23.2.1.4.         the purchase price payable by the Company to the Trust shall be the
Subscription Price; and

 

23.2.1.5.         the purchase price shall be payable by the Company against delivery of
the relevant documents of title in respect of the Scheme Shares repurchased by
the Company from the Trust.

 

23.2.2.              If the proposed
take-over offer or scheme of arrangement is approved on the basis set out in
clause 23.2.1.2, then:

 

23.2.2.1.         as soon as reasonably
possible after the Company has effected the Repurchase referred to in clause
23.2.1, or if Sasol does not exercise such Repurchase Right, as soon as
reasonably possible after it lapses, but prior to the implementation of the
proposed scheme of arrangement or take-over offer, the Trust shall, in respect
of the remaining Scheme Shares, take all steps as are necessary to procure that
ownership in respect of the Designated Percentage thereof is passed to each
Employee Beneficiary; and

 

23.2.2.2.         the Trustees shall, thereafter, acting as an agent on behalf of each
Employee Beneficiary, release the Scheme Shares to the offeror.

 

23.2.3.              Having received, on
behalf of the Beneficiaries, all the Consideration Shares, the Trust shall
distribute the Consideration Shares on the Distribution Date on the following
basis:

 

23.2.3.1.         to each Employee Beneficiary,
his Designated Percentage of the Consideration Shares, subject to
clause 25.3 or 25.4, as the case may be; and

 

23.2.3.2.         the remainder, if any, to the Residual Beneficiary subject to
clause 25.5,

 

 

and the Trustees
shall use any amounts deducted for Specific Taxation and Expenses to pay same.

 

23.3.        100%
acquisition of Company for consideration in cash and shares

 

23.3.1.              Should an offeror give
notice that it intends to propose a take-over or scheme of arrangement (which
shall for the avoidance of doubt include a scheme effected by way of a share
buy back by the Company) as a result of which the entire issued share capital
of the Company will be acquired in consideration for a combination of cash and
Consideration Shares, then the Company shall, from the date of gaining
knowledge of the proposed offer or scheme of arrangement until the Business Day
after the expiry of the period contemplated in clause 23.3.1.2 be entitled to
effect a repurchase of the Scheme Shares on the following terms:

 

23.3.1.1.         the Repurchase shall occur
with effect from the date on which the Company gives written notice to the
Trust of its intention to effect the Repurchase, the intention being that the
Scheme Shares in question should not be the subject of the take-over or scheme
of arrangement, but shall be implemented only when the condition in clause
23.3.1.2 is fulfilled;

 

23.3.1.2.         the Repurchase shall be subject to the fulfilment of the following
suspensive condition:

 

23.3.1.2.1.               in the case of the proposed scheme of
arrangement, the sanctioning thereof by the court; or

 

 

23.3.1.2.2.               in
the case of the proposed take-over offer, the requisite percentage of the
Shareholders in order to make the take-over a compulsory one;

 

23.3.1.3.         the number of Scheme Shares
which the Company shall repurchase from the Trust shall be determined in
accordance with the Repurchase Formula with the market value of a Share being
adjusted to the price offered per Share by the offeror and the value of the
relevant number of Consideration Shares;

 

23.3.1.4.         the purchase price payable by the Company to the Trust shall be the
Subscription Price; and

 

 

23.3.1.5.         the purchase price shall be payable by the Company against delivery of
the relevant documents of title in respect of the Scheme Shares repurchased by
the Company from the Trust.

 

23.3.2.              If the proposed
take-over offer or scheme of arrangement is approved on the basis set out in
clause 23.3.1.2, then:

 

23.3.2.1.         as soon as reasonably
possible after the Company has effected the Repurchase referred to in clause
23.3.1, or if Sasol does not exercise such Repurchase Right, as soon as
reasonably possible after it lapses, but prior to the implementation of the
proposed scheme of arrangement or take-over offer, the Trust shall, in respect
of the Remaining Scheme Shares, take all steps as are necessary to procure that
ownership in respect of the Designated Percentage thereof is passed to each
Employee Beneficiary; and

 

23.3.2.2.         the Trustees shall, thereafter, acting as an agent on behalf of each
Employee Beneficiary, release the Scheme Shares to the offeror.

 

23.3.3.              Having received, on
behalf of the Beneficiaries, all the Consideration Shares and the cash proceeds
payable by the offeror to the Trust, the Trust shall distribute the cash
proceeds and Consideration Shares on the Distribution Date on the following
basis:

 

23.3.3.1.         the cash portion of each Beneficiary’s
entitlement shall be utilised to discharge such Beneficiary’s attributable
Specific Taxation and Expenses;

 

23.3.3.2.         if the cash portion of any
Beneficiary’s entitlement is not sufficient to discharge his attributable
Specific Taxation and Expenses then the provisions of clause 25.3 or 25.4
shall apply;

 

23.3.3.3.         to each
Employee Beneficiary, his Designated Percentage, subject to
clause 23.3.3.1 or 23.3.3.2, as the case may be; and

 

23.3.3.4.         the remainder, if any, to the Residual Beneficiary subject to
clause 25.5,

 

and the Trustees
shall use any amounts deducted for Specific Taxation and Expenses to pay same.

 

 

23.4.        Partial
acquisition of Company

 

Should an
offeror give notice that it intends to propose an offer as a result of which
only part of each shareholder’s Shares will be acquired, if the offer is
accepted (“Partial Offer”), and if in the
opinion of the Company, in its sole discretion, the Partial Offer might
adversely impact the BEE credentials of the Company in any way, the Board may
direct the Trustees in writing, who would on such direction be obliged, to
reject such Partial Offer as regards the portion of the Scheme Shares which is
the subject of the Partial Offer and the Employee Beneficiaries shall not be
entitled to direct the Trustees to vote on such Partial Offer in any other
manner.

 

23.5.        Capitalisation
Shares award

 

23.5.1.              Should an award of Non
Elective Capitalisation Shares in the Company be made to the Trust then those
Non Elective Capitalisation Shares shall form part of the Scheme Shares and
shall be treated in accordance with, and subject to the terms and conditions
of, this Trust Deed.

 

23.5.2.              In the case of the Company
offering a cash Dividend with the alternative of Elective Capitalisation Shares
or vice versa, the Trustees shall be obliged to elect or accept, as the case
may be, the cash Dividend.

 

23.6.        Other Corporate Actions

 

23.6.1.              As regards any unbundling by
the Company of any of its assets, any Partial Offer in respect of which the
Company does not direct the Trustees to reject the Partial Offer, any buy back
offer by the Company made generally to its shareholders or any other form of
corporate action which could result in Scheme Shares being acquired from the
Trustees or the Trustees being the owner of additional assets or the Scheme
Shares no longer being worth their previous value by reason of distributions,
which is not expressly provided for in this Trust Deed:

 

23.6.1.1.         the Trustees shall act in
accordance with the Board’s directions (determined in its sole discretion) so
as to ensure that:

 

23.6.1.1.1.               the Company’s BEE
credentials shall not be adversely impacted; and

 

23.6.1.1.2.               the Corporate Action
shall not have the effect of:

 

23.6.1.1.2.1.            undermining any Repurchase
Right; and/or

 

 

23.6.1.1.2.2.           excluding from the ambit of
the Repurchase Right, any of the assets covered (directly or indirectly) by the
Repurchase Right or assets resulting from the Corporate Action which should be
included as part of the Repurchase Right so as to preserve the value of the
Repurchase Right,

 

provided that to the extent
that any such direction could relieve the Company of any of its obligations in
terms of this Trust Deed or constitute the unilateral determination by the
Company of the terms or scope of the Repurchase Right, the Trustees shall not
implement that direction, but in that regard only, any adjusted terms or scope
(by the inclusion as the subject matter of the Repurchase Right of any of the
Other Assets) of the Repurchase Right (other than the necessary adjustments to
the Repurchase Formula which shall be dealt with in accordance with
clause 23.6.1.2), shall not impact upon the fundamental basis of the
transactions contemplated in this Trust Deed, and shall be determined by an
independent expert agreed by the Company and the Trustees (and failing
agreement between them within 48 (forty eight) hours of suggestion by the
Company, as determined by the President from time to time of the Law Society of
the Northern Provinces (or its successor body)).  The independent expert shall act as an expert
and not as an arbitrator and his decision shall be final and binding on the
Company and the Trustees and shall be implemented instead of such direction by
the Board.  His costs shall be borne by
the Company;

 

23.6.1.2.          after any determination by the
independent expert as contemplated in clause 23.6.1.1, the Auditors shall,
using such determination, adjust the Repurchase Formula in such manner as they,
acting as experts and not as arbitrators, shall determine.  Their decision shall be final and binding;

 

23.6.1.3.          no exercise by the Company of
its discretion nor any determination by the independent expert or the Auditors
shall be fettered by the provisions of the Trust Deed including the manner in
which the Corporate Actions contemplated in clauses  to 23.1 to 23.5 have
been dealt with.

 

 

23.6.2.              Notwithstanding that the
proceeds of an unbundling may be a dividend for the purposes of tax law, the
proceeds of an unbundling shall not be treated as a dividend for the purposes
of this Trust Deed.

 

23.7.        Reorganisation of Shares

 

If the
Shares are reorganised or consolidated or subdivided in any way, then the
number of Scheme Shares in respect of which Vested Rights are granted or are
intended to be granted to Eligible Employees under this Trust Deed shall be
adjusted by the Auditors to reflect such reorganisation in such manner as they,
acting as experts and not as arbitrators, shall determine.  Their decision shall be final and binding.

 

23.8.        Company and Subsidiaries entitled to Dispose of
Assets

 

Notwithstanding
anything to the contrary contained in this Trust Deed, no provision of this
Trust Deed shall prevent the Company from disposing of any of its subsidiaries
or relinquishing control thereof, or of any of the Company or its subsidiaries
from disposing of their business at any time.

 

24.           FINAL DATE

 

The Board may
from time to time and by notice in writing to the Trustees determine an earlier
Final Date and is entitled, in its discretion, to withdraw any such
notification whereupon the previous Final Date shall be reinstated.

 

25.           GENERAL PROVISION APPLICABLE
TO THE DISTRIBUTION OF ENTITLEMENT ASSETS TO BENEFICIARIES

 

25.1.        On the Distribution Date, the Trustees
shall deliver to the Company the relevant share certificate as well as a signed
share transfer form in respect of the Scheme Shares and other shares forming
part of the Entitlement Assets, in order to enable the Company to effect the
registration of transfer of same into the name of the Employee Beneficiary
concerned and the Company shall register such transfer accordingly.

 

25.2.        Each Employee Beneficiary shall be liable
for the Specific Taxation and Expenses arising from the distribution and/or
realisation of his/her Entitlement Assets in terms of the provisions of this
Trust Deed.

 

25.3.        Each Employee Beneficiary entitled to
Entitlement Assets shall by not later than such date as the Trustees may, by
notice in writing to Employee Beneficiaries, determine, which shall be before
any distribution of Entitlement Assets is effected, notify the Trustees if he
requires the Trustees, after ownership has passed to him of such Entitlement
Assets, as his agent and on his behalf, to realise all or sufficient of his
Entitlement Assets in order to discharge 

 

 

his liability to pay the Specific Taxation and
Expenses attributable to him.  If an
Employee Beneficiary exercises this right, he grants the Trustees an
irrevocable power of attorney to act as his agent, with power of substitution.

 

25.4.        Should an Employee Beneficiary fail to
notify the Trustees within the permitted period that he requires the Trustees
to realise some or all of his Entitlement Assets on his behalf, such Employee
Beneficiary shall make payment to the Trustees prior to the transfer of the
Entitlement Assets to him in cash of the amount of Specific Taxation and
Expenses attributable to such Employee Beneficiary, failing which the Trustees
shall, after ownership of his Entitlement Assets has
passed to him,
realise on his behalf so many of his Entitlement Assets as are necessary for
such purpose.  Any proceeds of such
realisation remaining after discharging the Specific Taxation and Expenses
attributable to such Employee Beneficiary shall be paid to the Employee
Beneficiary concerned.

 

25.5.        The Residual Beneficiary grants the
Trustees an irrevocable power of attorney to act as his agent, with power of
substitution, to realise on its behalf sufficient of any Scheme Shares and
Other Assets, and where applicable, Consideration Shares, to be distributed to
it in order to discharge its liability to pay the Specific Taxation and
Expenses attributable to it.

 

25.6.        In order for the Trustees to procure the
sale of the Scheme Shares on behalf of any Beneficiary, the procedure to be
followed by the Trustees in connection therewith shall be determined by the
Board, which may, inter alia, prescribe:

 

25.6.1.              which broker shall be
instructed to sell the Scheme Shares;

 

25.6.2.              the frequency and periods of
time allotted for the sale of large tranches of Scheme Shares; and

 

25.6.3.              if appropriate, the method of
averaging, between Employee Beneficiaries, sale prices of Scheme Shares sold in
the event that the Trustees sell Scheme Shares on behalf of more than 1 (one)
Employee Beneficiary during any given period.

 

26.           MEDIATION

 

If any dispute
arises between any of the parties in regard to the carrying into effect of any
of the parties’ rights and obligations arising from this Trust Deed, such
parties agree to negotiate with each other in good faith in an effort to
resolve such dispute.  If such
negotiations fail or do not occur within 3 (three) days after the dispute arises,
the dispute shall not become the subject of litigation or arbitration until it
has been heard by a mediator unless such action is critical to avoid the
prescription of a cause of action or right at law or in order to obtain an
interdict, or otherwise to limit any material damage to such party’s
interests.  Such dispute shall be
referred to mediation before a mediator within 3 (three) days after the dispute
arises if the good faith negotiations have not resulted in
the 

 

 

resolution of the dispute.  The mediator
shall be appointed by the parties or failing agreement by them as to the
mediator, shall be nominated by the chairperson for the time being of
Alternative Dispute Resolution Association of South Africa (or its successor
body).  The mediation shall terminate
upon any one of the disputants withdrawing or the mediator informing the
disputants that in the mediator’s opinion, no useful purpose will be achieved
in continuing the mediation.  All
communications made by the disputants to the mediator or to each other during
or in connection with the mediation are made without prejudice to any rights
which they may have and form part of bona
fide settlement negotiations. 
The mediator shall not be compelled by any disputant to disclose any
fact learnt in the course of the mediation in any subsequent legal proceedings
which may take place and the parties waive their right to require the mediator
to testify regarding what transpired in the mediation.  The mediator shall:

 

26.1.1.              be entitled to communicate and
meet with any disputant either in the presence of the other disputant/s or in
private;

 

26.1.2.              not disclose any
information furnished in confidence by any one disputant to the mediator, to
any other disputant without the prior consent of the disputant who furnished
the information;

 

26.1.3.              act impartially and disclose
to the disputants any relationship or dealings which the mediator may have had
with any of the disputants;

 

26.1.4.              not make any decision which is
binding upon the disputants, the resolution of the dispute depending entirely upon
the disputants achieving agreement in respect thereof;

 

26.1.5.              decide and certify if, in the
event that the parties are unable to reach agreement on a issue referred to
him, whether the specific dispute is, on a reasonable assessment of the nature
and scope thereof, sufficiently material to require arbitration thereof.

 

27.           ARBITRATION

 

27.1.        Save in respect of those provisions of this
Trust Deed which provide for their own remedies which would be incompatible
with arbitration, a dispute which arises in regard to:

 

27.1.1.              the interpretation of;  or

 

27.1.2.              the carrying into effect
of;  or

 

27.1.3.              any of the parties’ rights and
obligations arising from;  or

 

27.1.4.              the termination or purported
termination of or arising from the termination of;

 

 

27.1.5.              this Trust Deed, or on any
matter which in terms of this Trust Deed requires agreement by the parties,
(other than where an interdict is sought or urgent relief may be obtained from
a court of competent jurisdiction), shall be submitted to and decided by
arbitration provided that the mediator referred to in 26 above has certified
that the dispute is sufficiently material to require arbitration thereof.

 

27.2.        That arbitration shall be held :

 

27.2.1.              with only the parties and
their representatives (including their legal representatives), present thereat;

 

27.2.2.              at Johannesburg or Sandton.

 

27.3.        It is the intention that the arbitration
shall, where possible, be held and concluded in 21 (twenty one) Business
Days after it has been demanded.  The
parties shall use their best endeavours to procure the expeditious completion
of the arbitration.

 

27.4.        Save as expressly provided in this Trust
Deed to the contrary, the arbitration shall be subject to the arbitration
legislation for the time being in force in South Africa.

 

27.5.        The arbitrator shall be an impartial senior
counsel of not less than 10 (ten) years standing appointed by the parties or,
failing agreement by the parties within 14
(fourteen) days after the arbitration has been demanded, at the request
of either of the parties shall be nominated by the Chairman for the time being
of the Johannesburg Bar Association (or its successor body in Gauteng).  If that person fails or refuses to make the
nomination, either party may approach the High Court of South Africa to make
such an appointment.  To the extent
necessary, the court is expressly empowered to do so.

 

27.6.        The parties shall keep the evidence in the
arbitration proceedings and any order made by any arbitrator confidential
unless otherwise contemplated herein.

 

27.7.        The arbitrator shall be obliged to give his
award in writing fully supported by reasons.

 

27.8.        The provisions of this clause are severable
from the rest of this Trust Deed and shall remain in effect even if this Trust
Deed is terminated for any reason.

 

27.9.        The arbitrator shall have the power to give
default judgment if any party fails to make submissions on due date and/or
fails to appear at the arbitration.

 

 

28.           DOMICILIUM CITANDI ET
EXECUTANDI

 

28.1.        The parties choose as their domicilia citandi et executandi for all purposes under this
Trust Deed, whether in respect of court process, notices or other documents or
communications of whatsoever nature, the following address:

 

28.1.1.              the Company:

 

Physical:                                                                   1 Sturdee Avenue

Rosebank

Johannesburg

2196

 

Postal:                                                                                  PO Box 5486

                                                                                                                      Johannesburg

                                                                                                                      2000

 

Telefax:                                                                          011 788 5091

 

E-mail                                                                                  sasolHR@sasol.com

 

Marked for the attention of the Company
Secretary

 

28.1.2.              the Trustees:

 

Physical:                                                                   1 Sturdee Avenue

Rosebank

Johannesburg

2196

 

Postal:                                                                                  PO Box 5486

                                                                                                                      Johannesburg

                                                                                                                      2000

 

Telefax:                                                                           011 788 5091

 

E-mail                                                                                   sasolHR@sasol.com

 

Marked for the attention of the Company
Secretary

 

28.2.        Any notice or communication required or
permitted to be given in terms of this Trust Deed shall be valid and effective
only if in writing but it shall be competent to give notice by telefax.

 

28.3.        Either the Company or the Trustees may by
notice to the other of them change the physical address chosen as its domicilium citandi et executandi to another physical address
where postal delivery occurs in South Africa or its telefax number, provided
that the change shall become effective on the 5th (fifth) Business
Day from the deemed receipt of the notice by the other party.

 

28.4.        Any notice to a party:

 

 

28.4.1.              delivered by hand to a
responsible person during normal business hours at the physical address chosen
as its domicilium citandi et executandi shall
be deemed to have been received on the day of delivery;

 

sent by
telefax to its chosen telefax number stipulated in clause 28.1
shall be deemed to have been received on the date of dispatch (unless the
contrary is proved);

 

sent by
prepaid registered post (by airmail if appropriate) in a correctly addressed
envelope to it at an address chosen as its domicilium
citandi et executandi to which post is delivered shall be deemed to
have been received on the 7th (seventh) business day after posting (unless the
contrary is proved); or

 

28.4.2.              sent by e-mail to its chosen
e-mail address stipulated in clause 28.1, shall be deemed to have been received
on the date of despatch (unless the contrary is proved).

 

28.5.        Notwithstanding
anything to the contrary herein contained a written notice or communication
actually received by a party shall be an adequate written notice or communication
to it notwithstanding that it was not sent to or delivered at its chosen domicilium citandi et executandi.

 

29.           TERMINATION

 

This Trust
shall terminate upon the later of:

 

29.1.        the Trust ceasing to hold any Shares and
any Other Assets;  and

 

29.2.        the later of the Trustees
having discharged, in accordance with the provisions of this Trust Deed, all of
their liabilities, and performed all of their obligations.

 

30.           AMENDMENTS TO THE DEED

 

Subject to the
provisions of clause 13.1.2, the Trustees shall be:

 

30.1.        obliged to amend this Trust
Deed if directed to do so by, and in accordance with the written directions of,
the Board; or

 

30.2.        entitled to amend this Trust
Deed with the prior written consent of the Board;

 

provided that if any such amendment
prejudices any Employee Beneficiary in any material way, then the Trustees
shall, in addition, obtain the approval of a majority of the votes of the
Employee Beneficiaries exercised in accordance with the provisions of clause
20.2.7 at a meeting convened in accordance with the provisions of
clause 20 (Meetings of Beneficiaries).

 

 

	
  Date: 10
  April 2008

  	
   

  	
  For
  SASOL LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ CARINE VAN DEN BERG

  
	
   

  	
   

  	
  Carine Van den Berg

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ CONSTANTINE MUTZURIS

  
	
   

  	
   

  	
  Constantine Mutzuris

  
	
   

  	
   

  	
   

  	
   

  
	
  Date: 8 April 2008

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   /s/ SEADIMO HESSIE CHABA

  
	
   

  	
   

  	
  Seadimo Hessie Chaba

  
	
   

  	
   

  	
  Trustee of the Sasol Inzalo Employee
  Scheme

  

 

 

Schedule A – ELIGIBLE
EMPLOYEES

 

 

Schedule B – COMPANY’S
SUBSIDIARIES

 

National
Petroleum Refiners of South Africa (Proprietary) Limited

 

Natcos
Unincorporated Joint Venture between Sasol Oil (Proprietary) Limited and Total
(South Africa) (Proprietary) Limited

 

Merisol RSA
(Proprietary) Limited

 

Sumika –
Merisol RSA (Proprietary) Limited

 

Sasol Synfuels
International (Proprietary) Limited (Oryx GTL – Qatar)

 

Sasol Synfuels
International (Proprietary) Limited (Escravos GTL – Houston)

 

Sasol Synfuels
International (Proprietary) Limited (Escravos – Nigeria)

 

Sasol Chemical
Industries Limited (Sasol Polymers Division – Iran)

 

Sasol Synfuels
International (Proprietary) Limited (Sasol Qatar)

 

Sasol Oil
(Proprietary) Limited (SOIL – UK - London)

 

Sasol
Technology (Proprietary) Limited (GTL Projects – UK – Reading)

 

Sasol
Petroleum International (Proprietary) Limited (UK – London)

 

Sasol Olefins &
Surfactants / Solvents (Sasol Chemical Pacific – Singapore)

 

Sasol Chemical
Industries Limited (Sasol Polymers Division – China)

 

Sasol Synfuels
International (Proprietary) Limited (CTL – India - Mumbai)

 

Sasol
Petroleum Temane (Mozambique – Maputo)

 

Sasol
Petroleum Temane (Mozambique – Vilanculos)

 

Sasol Olefins &
Surfactants / Solvents (SME & Sasol Gulf - Dubai)

 

Merisol (UK –
Farnham)

 

Merisol (USA –
Houston)

 

Sasol Mining
(Proprietary) Limited (India CTL – Mumbai)

 

Sasol Chemical
Industries Limited (Sasol Polymers Division – Dubai)

 

 

Schedule
C – REPURCHASE FORMULA

 

RS =        

 

Where:

 

RS =        Number of Repurchase Shares

 

N =          Number of Subscription Shares subscribed for by the
Trust

 

P1 =        R366,00

 

R =          Escalation factor of 11,5% divided by 2 (“Escalation
Factor”)

 

T1 =        Number of periods of 6 months (full or partial) from Commencement Date
to date of Repurchase

 

D =          Sum of the future values of E, calculated as amount of
E in any period, escalated at the Escalation Factor for the number of periods
(full or partial) from date of the dividend receipt to the date of Repurchase

 

E =          the difference between the dividend received by the
Trust on any 1 Subscription Share compared to the dividends (including
extraordinary dividends but excluding proceeds from an unbundling) received on
an ordinary Share held by Sasol shareholders, multiplied by the number of
Subscription Shares  held by the Trust on
that date

 

V =          The number of Shares which were the subject of a
previous exercise of the formula multiplied by the 30 day VWAP of a Share on
such date, escalated at the Escalation Factor for the number of periods (full
or partial) from date of the previous exercise of the formula to the date of
the current Repurchase

 

P2 =        30 day VWAP of a Share on the date of Repurchase

 

In the event
of any corporate action, the formula will be adjusted appropriately, if
required.

 

 

TABLE OF CONTENTS

 

 

	
  Clause number and description

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  INTERPRETATION

  	
   

  	
  2

  
	
  2.

  	
  ESTABLISHMENT AND PURPOSE OF THE TRUST

  	
   

  	
  10

  
	
  3.

  	
  FUNDING OF THE TRUST

  	
   

  	
  10

  
	
  4.

  	
  TRUSTEES

  	
   

  	
  11

  
	
  5.

  	
  PROCEEDINGS OF TRUSTEES

  	
   

  	
  15

  
	
  6.

  	
  POWERS OF TRUSTEES

  	
   

  	
  16

  
	
  7.

  	
  DUTIES OF TRUSTEES

  	
   

  	
  17

  
	
  8.

  	
  PRIVILEGES OF THE TRUSTEES

  	
   

  	
  19

  
	
  9.

  	
  SUBSCRIPTION FOR SCHEME SHARES

  	
   

  	
  19

  
	
  10.

  	
  RESTRICTIVE COVENANTS

  	
   

  	
  20

  
	
  11.

  	
  BOOKS OF ACCOUNT AND AUDITORS

  	
   

  	
  21

  
	
  12.

  	
  DAY-TO-DAY ADMINISTRATION AND COSTS AND EXPENSES OF THE TRUST

  	
   

  	
  21

  
	
  13.

  	
  VESTINGS

  	
   

  	
  22

  
	
  14.

  	
  DIVIDENDS

  	
   

  	
  25

  
	
  15.

  	
  INVESTMENT OF CASH

  	
   

  	
  26

  
	
  16.

  	
  RESTRICTIVE COVENANTS: EMPLOYEE BENEFICIARIES

  	
   

  	
  26

  
	
  17.

  	
  REPURCHASE, DISTRIBUTION AND FORFEITURE OF SHARES

  	
   

  	
  27

  
	
  18.

  	
  DISTRIBUTION OF SCHEME SHARES AND OTHER ASSETS TO RESIDUAL BENEFICIARY

  	
   

  	
  27

  
	
  19.

  	
  CESSATION OF EMPLOYMENT OF EMPLOYEE BENEFICIARIES

  	
   

  	
  28

  
	
  20.

  	
  MEETINGS OF BENEFICIARIES

  	
   

  	
  31

  
	
  21.

  	
  ENTITLEMENT OF EMPLOYEE BENEFICIARIES TO REQUISITION MEETINGS

  	
   

  	
  32

  
	
  22.

  	
  VOTING OF SCHEME SHARES

  	
   

  	
  32

  
	
  23.

  	
  CORPORATE ACTION

  	
   

  	
  34

  
	
  24.

  	
  FINAL DATE

  	
   

  	
  41

  
	
  25.

  	
  GENERAL PROVISION APPLICABLE TO THE DISTRIBUTION OF ENTITLEMENT ASSETS
  TO 

  	
   

  	
   

  
	
  BENEFICIARIES

  	
   

  	
  42

  
	
  4226.

  	
  MEDIATION

  	
   

  	
  43

  
	
  27.

  	
  ARBITRATION

  	
   

  	
  44

  
	
  28.

  	
  DOMICILIUM CITANDI ET EXECUTANDI

  	
   

  	
  45

  
	
  29.

  	
  TERMINATION

  	
   

  	
  46

  
	
  30.

  	
  AMENDMENTS TO THE DEED

  	
   

  	
  47Exhibit 10.1

 

AMENDED EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT is entered into as
of the 22nd day of July, 2008, by and between SEALY CORPORATION, a Delaware
corporation (the “Company”), and Lawrence J. Rogers (the “Employee”).

 

W I T N E S E T H:

 

WHEREAS, the
Company and the Employee (collectively “the Parties”) desire to enter into this
Employment Agreement (the “Agreement”) as hereinafter set forth;

 

NOW, THEREFORE, the Company and Employee
agree as follows:

 

1.                                       EMPLOYMENT
TERM.

 

(a)                                  During the period
specified in Subsection l(b) hereof (the “Employment Term”), the Company
shall employ the Employee, and the Employee shall serve the Company, as
President and Chief Executive Officer, based on the terms and subject to the
conditions set forth herein.

 

(b)                                 The Employment Term
shall:

 

(i)                           be for a two (2) year term
commencing on the date of this Agreement, which term may be extended by mutual
agreement of the Parties;

 

(ii)                        provided
that the Employment Term may terminate prior to the date specified above in
this Subsection 1(b) as provided in Section 4 hereof.

 

2.                                       POSITION,
DUTIES, AND RESPONSIBILITIES.  At all
times during the Employment Term, the Employee shall:

 

(a)                                  Hold
the position of President and Chief Executive Officer (the “Chief Executive
Officer”) reporting to the Board of Directors of the Company;

 

(b)                                 Have those duties and
responsibilities, and the authority, customarily possessed by the Chief
Executive Officer of a major corporation and such additional duties as may be
assigned to the Employee from time to time by the Board of Directors of the
Company (the “Board”) which are consistent with the position of the Chief
Executive Officer of a major corporation;

 

(c)                                  Adhere
to such reasonable written policies and directives, and such reasonable unwritten
policies and directives as are of common knowledge to executive officers of the
Company, as may be promulgated from time to time by the Board and which are
applicable to executive officers of the Company;

 

(d)                                 Invest in the Company
only in accordance with any insider trading policy of the Company in effect at
the time of the investment; and

 

(e)                                  Devote the Employee’s
entire business time, energy, and talent to the business, and to the
furtherance of the purposes and objectives, of the Company, and neither
directly nor indirectly act as an employee of or render any business,
commercial, or professional services to any other person, firm or organization
for compensation, without the prior written approval of the Board.

 

Nothing in this Agreement shall preclude the
Employee from devoting reasonable periods of time to charitable and community
activities or the management of the Employee’s investment assets, provided such
activities do not interfere with the performance by the Employee of the
Employee’s duties hereunder.

 

3.                                       SALARY, BONUS
AND BENEFITS.  For services rendered
by the Employee on behalf of the Company during the Employment Term, the
following salary, bonus and benefits shall be provided to the Employee by the
Company:

 

 

(a)                                  The Company shall pay
to the Employee, in equal installments, according to the Company’s then current
practice for paying its executive officers in effect from time to during the
Employment Term, an annual base salary at the initial rate of Seven Hundred
Thousand Dollars ($700,000).  This salary
shall be subject to annual review by the Compensation Committee of the Board
(the “Committee) and may be increased, but not decreased, to the extent, if
any, that the Committee may determine.

 

(b)                                 The Employee shall
participate in the Sealy Corporation Annual Bonus Plan (the “Bonus Plan”) in
accordance with the provisions of that Plan as in effect as of the date of this
Agreement.  The Employee’s Target annual
bonus, as established by the Committee under the Bonus Plan as of the date of
this Agreement, is one-hundred percent (100%) (His “Target Annual Bonus
Percentage”) of annual base salary, with a range of zero percent (0%) to two
hundred percent (200%) of annual base salary.

 

(c)                                  The Employee shall be
eligible for participation in such other benefit plans, including, but not
limited to, the Company’s Profit Sharing Plan and Trust, Executive Severance
Benefit Plan, Benefit Equalization Plan, Short-Term and Long Term Disability
Plans, Group Term Life Insurance Plan, Medical Plan or PPO, Dental Plan, the
401(k) feature of the Profit Sharing Plan and the 1998 and 2004 Stock
Option Plans, as the Board may adopt from time to time and in which the Company’s
executive officers are eligible to participate. 
Such participation shall be subject to the terms and conditions set
forth in the applicable plan documents. 
As is more fully set forth in Section 6 hereof, the Employee shall
not be entitled to duplicative payments under this Agreement and the Executive
Severance Benefit Plan.

 

(d)                                 Without limiting the
generality of Subsection 3(c) above, for so long as such coverage shall be
available to the executive officers of the Company, the Employee shall be
eligible to participate in the Company’s Group Term Life Insurance Plan with a
death benefit to be provided at the level of one and one half (1 1⁄2) times
annual base salary at Company expense (up to a maximum of $1 million in
coverage), plus extended coverage with a death benefit to be provided of at
least the level in effect on the date of this Agreement for the Employee under
such Plan at the Employee’s discretion and expense.

 

(e)                                  The Employee shall be
entitled to take, during each calendar year period during the Employment Term,
vacation time equal to four weeks per year.

 

(f)                                    In addition, the Parties
do hereby further confirm that any shares of Class A Common Stock of the
Company (“Class A Shares”), and any options to purchase additional Class A
Shares previously granted to Employee are in addition to, and not in lieu of,
any shares or options which may be granted under any other plan or arrangement
of the Company after the date of this Agreement, and (b) the various stock
agreements and stock option agreements, and any related Stockholder Agreement
(the “Stockholder Agreement”) between the Parties (such agreements being
hereinafter referred to collectively as the “Pre-existing Agreements”), all
remain in full force and effect except as otherwise provided herein.  Notwithstanding the foregoing, to the extent
that any provision contained herein is inconsistent with the terms of any of
the Pre-existing Agreements, the terms of this Agreement shall be controlling.

 

4.                                       TERMINATION
OF EMPLOYMENT.  As indicated in
Subsection 1(b)(ii), the Employment Term may terminate prior to the date
specified in Subsection 1(b)(i) as follows:

 

(a)                                  The Employee’s
employment hereunder will terminate without further notice upon the death of
the Employee.

 

(b)                                 The Company may
terminate the Employee’s employment hereunder effective immediately upon giving
written notice of such termination for “Cause”. 
For these purposes, “Cause” shall mean the following:

 

(i)                         Commission by the Employee (evidenced
by a conviction or written, voluntary and freely given confession) of a
criminal act constituting a felony;

 

2

 

(ii)                      Commission
by the Employee of a material breach or material default of any of the Employee’s
agreements or obligations under any provision of this Agreement, including,
without limitation, the Employee’s agreements and obligations under Subsections
2(a) through 2(e) and Sections 8 and 9 of this Agreement, which
is not cured in all material respects within thirty (30) days after the Chief
Executive Officer or the designee thereof gives written notice thereof to the
Employee; or

 

(iii)                   Commission by
the Employee, when carrying out the Employee’s duties under this Agreement, of
acts or the omission of any act, which both: 
(A) constitutes gross negligence or willful misconduct and (B) results
in material economic harm to the Company or has a materially adverse effect on
the Company’s operations, properties or business relationships.

 

(c)                                  The Employee’s
employment hereunder may be terminated by the Company upon the Employee’s
disability, if the Employee is prevented from performing the Employee’s duties
hereunder by reason of physical or mental incapacity for a period of one
hundred eighty (180) consecutive days in any period of two consecutive fiscal
years of the Company, but the Employee shall be entitled to full compensation
and benefits hereunder until the close of such one hundred and eighty (180) day
period.

 

(d)                                 The Company may
terminate the Employee’s employment hereunder without Cause at any time upon
thirty (30) days written notice.

 

(e)                                  The Employee may
terminate employment hereunder effective immediately upon giving written notice
of such termination for “Good Reason”, as defined in Subsection 4(g) below.

 

(f)                                    The Employee may
terminate employment hereunder without Good Reason at any time upon thirty (30)
days written notice.

 

(g)                                 For purposes of this
Agreement, “Good Reason” means the occurrence of (i) any reduction in
either the annual base salary of the Employee or the Target Annual Bonus
Percentage or maximum annual bonus percentage applicable to the Employee under
the Bonus Plan, (ii) any material reduction in the position, authority or
office of the Employee, (iii) any material reduction in the Employee’s
responsibilities or duties for the Company, (iv) any material adverse
change or reduction in the aggregate “Minimum Benefits,” as hereinafter
defined, provided to the Employee as of the date of this Agreement (provided
that any material reduction in such aggregate Minimum Benefits that is required
by law or applies generally to all employees of the Company shall not
constitute “Good Reason” as defined hereunder), (v) any relocation of the
Employee’s principal place of work with the Company to a place more than
twenty-five (25) miles from the geographical center of Greensboro, North
Carolina, (vi) the material breach or material default by the Company of
any of its agreements or obligations under any provision of this Agreement.  As
used in this Subsection 4(g), an “adverse change or material reduction” in the
aggregate Minimum Benefits shall be deemed to result from any reduction or any
series of reductions which, in the aggregate, exceeds five percent (5%) of the
value of such aggregate Minimum Benefits determined as of the date of this
Agreement.  As used in this Subsection
4(g), Minimum Benefits are life insurance, accidental death, long term
disability, short term disability, medical, dental, and vision benefits and the
Company’s expense reimbursement policy. 
The Employee, within ninety (90) days of obtaining notice of Good
Reason, shall give written notice to the Company on or before the date of
termination of employment for Good Reason stating that the Employee is
terminating employment with the Company and specifying in detail the reasons
for such termination.  If the Company
does not object to such notice by notifying the Employee in writing within five
(5) days following the date of the 

 

3

 

Company’s receipt of the Employee’s notice of
termination, the Company shall be deemed to have agreed that such termination
was for Good Reason.  The parties further
agree that “Good Reason” will be deemed to have occurred if the purchaser, in
connection with the sale or transfer of all or substantially all of the assets
of the Company, does not assume this Agreement in accordance with Section 11
hereof.  If the Employee does not give a
written termination notice to the Company within ninety (90) days of the
Employee obtaining notice of such Good Reason, then such Good Reason shall no
longer provide a basis for the employee’s termination of employment with the
Company.

 

5.                                       SEVERANCE
COMPENSATION.  If the Employee’s
employment is terminated, the following severance provisions will apply:

 

(a)                                  If, during the term
of this agreement, the Employee’s employment is terminated by the Company other
than for Cause or is terminated by the Employee for Good Reason, then, for a
period of two (2) years after such termination (“Payment Term”) the
Company shall:

 

(i)                         continue to pay the Employee’s annual base
salary in the then prevailing amount and at the times specified in
Subsection 3(a) hereof, or if such annual base salary has decreased during
the one year period ending on the Employee’s termination of employment, at the
highest rate in effect during such one year period;

 

(ii)                      continue the
Employee’s participation in the Bonus Plan as provided in Subsection 3(b) hereof
provided that the Company will:

 

(A)                              pay the Employee a
prorated bonus under the Bonus Plan for the partial year period ending on the
date of the Employee’s termination of employment calculated as if the Employee
had continued to be employed for the entire year except that the Employee’s
bonus percentage (calculated at the time and in the manner customary as of the
date of this Agreement, but disregarding the termination of employment of the
Employee) shall be applied to the Employee’s annual base salary payable in
accordance with Subsection 3(a) hereof for the partial year period
ending on the Employee’s termination of employment; and

 

(B)                                thereafter, during the
remainder of the Payment Term, a bonus equal to the Employee’s Target Annual
Bonus Percentage, multiplied by the Employee’s annual base salary in the amount
specified in Subsection 5(a)(i) payable during the year (or portion
thereof) for which the bonus is being calculated; with such amounts being
payable when bonuses under the Bonus Plan are customarily payable, except that
the final bonus for the final partial year during the Payment Term shall be
payable with the final payment of the annual base salary under Subsection 5(a)(i) hereof;
and

 

(iii)                   continue in
effect the medical and dental coverage, long and short-term disability
protection, and any life insurance protection (including life insurance
protection being paid for by the Employee), being provided to the Employee
immediately prior to the Employee’s termination of employment, or if any of
such benefits have decreased during the one year period ending on the Employee’s
termination of employment, at the highest level in effect during such one year
period as long as the Employee continues to make the applicable employee
contributions in effect during the Payment Term based on the most senior level
contribution rate.

 

4

 

(b)                                 If the Employee’s
employment hereunder terminates due to the Employee’s death, disability,
termination by the Company for Cause or termination by the Employee other than
for Good Reason, then no further compensation or benefits will be provided to
the Employee by the Company under this Agreement following the date of such
termination of employment other than payment of compensation earned to the date
of termination of employment but not yet paid.  
As more fully and generally provided in Section 15 hereof, this
Subsection 5(b) shall not be interpreted to deny the Employee any benefits
to which he may be entitled under any plan or arrangement of the Company
applicable to the Employee.  Likewise,
this Subsection 5(b) shall not be interpreted to entitle the Employee
to a bonus under the Bonus Plan following his termination of employment except
as provided in the Bonus Plan which requires employment on the last day of the
Company’s taxable year as a condition to receipt of a bonus thereunder for such
year except in the cases of death or disability.

 

(c)                                  Notwithstanding
anything contained in this Agreement to the contrary, other than Section 15
hereof, if the Employee breaches any of the Employee’s obligations under Section 8
or 9 hereof, no further severance payments or other benefits will be payable to
the Employee under this Section 5.

 

(d)                                 If the Employee
retires from the Company after July 22, 2010, the Company will pay the
Employee a prorated bonus under the Bonus Plan for the partial year period
ending on the date of the Employee’s retirement from employment calculated as
if the Employee had continued to be employed for the fiscal entire year, except
that the Employee’s bonus percentage (calculated in accordance with the Bonus
Plan in the manner customary as of the date of this Agreement, but disregarding
the termination of employment of the Employee) shall be applied to the portion
of the Employee’s annual base salary payable in accordance with
Subsection 3(a) hereof for the partial year period commencing at the
start of the fiscal year in which the Employee retires and ending on the
Employee’s retirement date.

 

6.                                       SEVERANCE
PLAN.  It is the intention of the
Parties that this Agreement provide special benefits to the Employee.  If at any time the Company’s Executive
Severance Benefit Plan would provide better cash severance benefits to the
Employee than this Agreement, the Employee may elect to receive such better
cash severance benefits in lieu of the cash severance benefits provided under
Subsections 5(a)(i) and 5(a)(ii), or Subsection 5(a)(v), of this
Agreement, whichever is applicable, while continuing to receive any other
benefits or coverages available under this Agreement.  If this Agreement would provide better cash
severance benefits to the Employee than the Company’s Executive Severance
Benefit Plan, the Employee shall receive the cash severance benefits under this
Agreement, as well as any other benefits or coverages available under this
Agreement.  In such case, the cash
severance benefits under this Agreement shall be in lieu of the cash severance
benefits payable under the Company’s Executive Severance Benefit Plan.

 

7.                                       PLAN
AMENDMENTS.  To the extent any
provisions of this Agreement modify the terms of any existing plan, policy or
arrangement affecting the compensation or benefits of the Employee, as
appropriate, (a) such modification as set forth herein shall be deemed an
amendment to such plan, policy or arrangement as to the Employee, and both the
Company and the Employee hereby consent to such amendment, (b) the Company
will appropriately modify such plan, policy or arrangement to correspond to
this Agreement with respect to the Employee, or (c) the Company will
provide an “Alternative Benefit,” as defined in Section 13 hereof, to or
on behalf of the Employee in accordance with the provisions of such Section 13.

 

8.                                       CONFIDENTIAL
INFORMATION.  The Employee agrees
that the Employee will not, during the Employment Term or at any time
thereafter, either directly or indirectly, disclose or make known to any other
person, firm, or corporation any confidential information, trade secret or
proprietary information of the Company 

 

5

 

that the Employee may acquire in the
performance of the Employee’s duties hereunder (except in good faith in the
ordinary course of business for the Company to a person who will be advised by
the Employee to keep such information confidential) or make use of any of such
confidential information except in the performance of the Employee’s duties or
when required to do so by legal process, by any governmental agency having
supervisory authority over the business of the Company or by any administrative
or legislative body (including a committee thereof) that requires the Employee
to divulge, disclose or make accessible such information.  In the event that the Employee is so ordered,
the Employee shall so advise the Company in order to allow the Company the
opportunity to object to or otherwise resist such order.  Upon the termination of the Employee’s
employment with the Company, the Employee agrees to deliver forthwith to the
Company any and all proprietary literature, documents, correspondence, and
other proprietary materials and records furnished to or acquired by the
Employee during the course of such employment. In the event of a breach or
threatened breach of this Section 8 by the Employee, the Company will be
entitled to preliminary and permanent injunctive relief, without bond or
security, sufficient to enforce the provisions hereof and the Company will be
entitled to pursue such other remedies at law or in equity which it deems
appropriate.

 

9.                                       NON-COMPETITION.   In consideration of this Agreement, the
Employee agrees that, during the Employment Term, and for one year thereafter,
the Employee shall not act as a proprietor, investor, director, officer,
employee, substantial stockholder, consultant, or partner in any mattress
retailer which does not sell Sealy products or with any of the following
mattress manufacturing companies or their affiliates: Simmons, Serta, Spring
Air, Kingsdown, Tempurpedic, and Select Comfort. The Employee understands that
the foregoing restrictions may limit the Employee’s ability to engage in
certain business pursuits during the period provided for above, but
acknowledges that the Employee will receive sufficiently higher remuneration
and other benefits from the Company hereunder than the Employee would otherwise
receive to justify such restriction.  The
Employee acknowledges that the Employee understands the effect of the
provisions of this Section 9, and that the Employee has had reasonable
time to consider the effect of these provisions, and that the Employee was
encouraged to and had an opportunity to consult an attorney with respect to
these provisions.  The Company and the
Employee consider the restrictions contained in this Section 9 to be
reasonable and necessary.  Nevertheless,
if any aspect of these restrictions is found to be unreasonable or otherwise
unenforceable by a court of competent jurisdiction, the Parties intend for such
restrictions to be modified by such court so as to be reasonable and
enforceable and, as so modified by the court, to be fully enforced.   In the event of a breach or threatened
breach of this Section 9 by the Employee, the Company will be entitled to
preliminary and permanent injunctive relief, without bond or security,
sufficient to enforce the provisions hereof and the Company will be entitled to
pursue such other remedies at law or in equity which it deems appropriate.

 

10.                                 NOTICES.  For purposes of this Agreement, all
communications provided for herein shall be in writing and shall be deemed to
have been duly given when hand delivered or mailed by United States registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

 

(a)                                  If the notice is to
the Company:

 

Mr. Kenneth Walker

Vice President and General Counsel

Sealy Corporation

One Office Parkway

Trinity, North Carolina 27370

 

(b)                                 If the notice is to
the Employee:

 

Mr. Lawrence Rogers

Chief Executive Officer

Sealy Corporation

One Office Parkway

Trinity, North Carolina 27370

 

or to such other address as either party may
have furnished to the other in writing and in accordance herewith; except that
notices of change of address shall be effective only upon receipt.

 

6

 

11.                                 ASSIGNMENT; BINDING
EFFECT.  This Agreement shall be
binding upon and inure to the benefit of the parties to this Agreement and
their respective successors, heirs (in the case of the Employee) and permitted
assigns.  No rights or obligations of the
Company under this Agreement may be assigned or transferred by the Company
except that such rights or obligations may be assigned or transferred in
connection with the sale or transfer of all or substantially all of the assets
of the Company, provided that the assignee or transferee is the successor to
all or substantially all of the assets of the Company and such assignee or
transferee expressly assumes the liabilities, obligations and duties of the
Company, as contained in this Agreement, either contractually or as a matter of
law.  The Company further agrees that, in
the event of a sale or transfer of assets as described in the preceding
sentence, it shall be a condition precedent to the consummation of any such
transaction that the assignee or transferee expressly assumes the liabilities,
obligations and duties of the Company hereunder.  No rights or obligations of the Employee
under this Agreement may be assigned or transferred by the Employee other than
the Employee’s rights to compensation and benefits, which may be transferred
only by will or operation of law, except as provided in this Section 11.

 

The Employee shall be entitled, to the extent
permitted under any applicable law, to select and change a beneficiary or beneficiaries
to receive any compensation or benefits payable hereunder following the
Employee’s death by giving the Company written notice thereof.  In the absence of such a selection, any
compensation or benefit payable under this Agreement following the death of the
Employee shall be payable to the Employee’s spouse, or if such spouse shall not
survive the Employee, to the Employee’s estate. 
In the event of the Employee’s death or a judicial determination of his
incompetence, reference in this Agreement to the Employee shall be deemed,
where appropriate, to refer to the Employee’s beneficiary, estate or other
legal representative.

 

12.                                 INVALID PROVISIONS.  Any provision of this Agreement that is
prohibited or unenforceable shall be ineffective to the extent, but only to the
extent, of such prohibition or unenforceability without invalidating the
remaining portions hereof and such remaining portions of this Agreement shall
continue to be in full force and effect. 
In the event that any provision of this Agreement shall be determined to
be invalid or unenforceable, the Parties will negotiate in good faith to
replace such provision with another provision that will be valid or enforceable
and that is as close as practicable to the provisions held invalid or unenforceable.

 

13.                                 ALTERNATIVE
SATISFACTION OF COMPANY’S OBLIGATIONS. 
In the event this Agreement provides for payments or benefits to or on
behalf of the Employee which cannot be provided under the Company’s benefit
plans, policies or arrangements either because such plans, policies or
arrangements no longer exist or no longer provide such benefits or because
provision of such benefits to the Employee would adversely affect the tax
qualified or tax advantaged status of such plans, policies or arrangements for
the Employee or other participants therein, the Company may provide the
Employee with an “Alternative Benefit,” as defined in this Section 13, in
lieu thereof.  The Alternative Benefit is
a benefit or payment which places the Employee and the Employee’s dependents in
at least as good of an economic position as if the benefit promised by this
Agreement (a) were provided exactly as called for by this Agreement, and (b) had
the favorable economic, tax and legal characteristics customary for plans,
policies or arrangements of that type. 
Furthermore, if such adverse consequence would affect the Employee or
the Employee’s dependents, the Employee shall have the right to require that
the Company provide such an Alternative Benefit.

 

14.                                 ENTIRE AGREEMENT,
MODIFICATION.  Subject to the
provisions of Section 15 hereof, this Agreement contains the entire
agreement between the Parties with respect to the employment of the Employee by
the Company and supersedes all prior and contemporaneous agreements,
representations, and understandings of the Parties, whether oral or
written.  No modification, amendment, or
waiver of any of the provisions of this Agreement shall be effective unless in
writing, specifically referring hereto, and signed by both Parties.

 

15.                                 NON-EXCLUSIVITY OF
RIGHTS.  Notwithstanding the
foregoing provisions of Section 14, nothing in this Agreement shall
prevent or limit the Employee’s continuing or future participation in any
benefit, bonus, incentive or other plan, program, policy or practice provided
by the Company for its executive officers, nor shall anything herein limit or
otherwise affect such rights as the Employee has or may have under any stock
option, restricted stock or other agreements with the Company or any of its
subsidiaries.  Amounts which the Employee
or the Employee’s dependents or beneficiaries are otherwise entitled to receive
under any such plan, policy, practice or program shall not be reduced by this
Agreement except as provided in Section 6 hereof with respect to payments
under the Executive Severance Benefit Plan if cash payments of annual base
salary are made hereunder.

 

7

 

16.                                 WAIVER OF BREACH.  The failure at any time to enforce any of the
provisions of this Agreement or to require performance by the other party of
any of the provisions of this Agreement shall in no way be construed to be a
waiver of such provisions or to affect either the validity of this Agreement or
any part of this Agreement or the right of either party thereafter to enforce
each and every provision of this Agreement in accordance with the terms of this
Agreement.

 

17.                                 GOVERNING LAW.  This Agreement has been made in, and shall be
governed and construed in accordance with the laws of, the State of North
Carolina.  The Parties agree that this
Agreement is not an “employee benefit plan” or part of an “employee benefit
plan” which is subject to the provisions of the Employee Retirement Income
Security Act of 1974, as amended.

 

18.                                 TAX WITHHOLDING.  The Company may withhold from any amounts
payable under this Agreement such federal, state or local taxes as shall be
required to be withheld pursuant to any applicable law or regulation.  Where withholding applies to Class A
Shares, the Company shall make cashless withholding available to the Employee.

 

19.                                 EXPENSE OF
ENFORCEMENT.  The Company shall
reimburse reasonable attorney fees and expenses incurred by the Employee to
enforce the provisions of this Agreement, even if his claims are not
successful, provided they are not ultimately determined by the court to be
frivolous.

 

20.                                 REPRESENTATION.  The Company represents and warrants that it
is fully authorized and empowered to enter into this Agreement and that the
performance of its obligations under this Agreement will not violate any
agreement between it and any other person, firm or organization.

 

21.                                 SUBSIDIARIES AND
AFFILIATES.  Notwithstanding any
contrary provision of this Agreement, to the extent it does not adversely
affect the Employee, the Company may provide the compensation and benefits to
which the Employee is entitled hereunder through one or more subsidiaries or
affiliates, including, without limitation, Sealy, Inc.

 

22.                                 NO MITIGATION OR
OFFSET.   In the event of any
termination of employment, the Employee shall be under no obligation to seek
other employment.  Amounts due the
Employee under this Agreement shall not be offset by any remuneration
attributable to any subsequent employment he may obtain.

 

23.                                 SOLE REMEDY.  The Parties agree that the remedies of each
against the other for breach of this Agreement shall be limited to enforcement
of this Agreement and recovery of the amounts and remedies provided for
herein.  The Parties, however, further
agree that such limitation shall not prevent either Party from proceeding
against the other to recover for a claim other than under this Agreement.

 

24.                                 ADDITIONAL OPTION
EXERCISE RIGHT.  Upon termination of
the Employee’s employment under this agreement, unless the Employee is
terminated by the Company for Cause or unless the employee resigns while the
Company has Cause to terminate such employment, the Employee shall have an
additional period to exercise all of his current and future stock options from
the Company.  Such additional period
shall be equal to the shorter of the two years after termination of employment
hereunder and the then remaining term of such stock option.

 

25.                                 TERMINATION OF
PRIOR EMPLOYMENT AGREEMENT.  This
Agreement shall fully replace the prior employment agreement between the
Company and Employee dated August 25, 1997, as well as the amendment dated
January 20, 2000, and that prior agreement and amendment are hereby
terminated and shall have no further force or effect.

 

*  *  * 
*  *

 

8

 

IN WITNESS WHEREOF, the Company and the
Employee have executed this Agreement as of the day and year first above
written.

 

 

	
   

  	
  SEALY
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Kenneth L.
  Walker

  
	
   

  	
  Senior Vice
  President, General Counsel

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lawrence J.
  Rogers

  

 

9

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