Document:

EXECUTION VERSION 

  

 

DRD GUARANTEE

 

issued by

 

DRDGOLD LIMITED

 

to and in favour of

 

SIBANYE GOLD LIMITED

 

 

	
  155 – 5th
  Street Sandton 2196

  	
  Docex 111
  Sandton

  	
  enquiries@werksmans.com

  
	
  Johannesburg
  South Africa

  	
  Tel    +27 11 535 8000

  	
  www.werksmans.com

  
	
  Private Bag
  10015 Sandton 2146

  	
  Fax   +27 11 535 8600

  	
   

  

 

 

 

 

 

KJT/JAJ

22112017/SIBA24179.7

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TABLE OF CONTENTS

1        interpretation . 1

2        SUSPENSIVE
CONDITION. 5

3        guarantee . 6

4        DURATION . 8

5        RENUNCIATION
OF BENEFITS and waiver of defences. 8

6        CONFIDENTIALITY . 11

7        DISPUTES . 13

8        DOMICILIUM
AND NOTICES. 14

9        GENERAL . 15

10     GOVERNING
LAW.. 17

11     COSTS . 17

 

                                                                                                                                               i

KJT/JAJ

22112017/SIBA24179.7

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2017/#4687299v1

DRD GUARANTEE

 

issued by

 

DRDGOLD LIMITED

 

to and in favour of

 

SIBANYE GOLD
LIMITED

 

 

1       
interpretation 

 

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

 

1.1              
a word or an expression which denotes ‐

 

1.1.1                    
any gender includes the other genders;

 

1.1.2                    
a natural person includes an artificial or
juristic person and vice versa; 

 

1.1.3                    
the singular includes the plural and vice
versa; 

 

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

 

1.2.1                    
"Agreement"
or "this Guarantee" ‐ this agreement, together
with its annexures (if any), as amended from time to time;

 

1.2.2                    
"Applicable Laws" ‐ in
relation to any Party, includes all statutes, subordinate legislation, common
law, regulations, ordinances, by‐laws, directives, codes of practice,
circulars, guidance or practice notices, judgments, decisions, standards and
similar provisions ‐

 

1.2.2.1                           
which are prescribed, adopted, made, published
or enforced by any Governmental Authority; and

 

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1.2.2.2                           
compliance with which is (or was or will be, at
the relevant time referred to in this Agreement) mandatory for that Party; 

 

1.2.3                    
"Companies Act" ‐ the
Companies Act No 71 of 2008;

 

1.2.4                    
"Composite Transaction" – will
have the meaning ascribed thereto in the DRD Exchange Agreement;

 

1.2.5                    
"CSDP" – a nominated
depository institution for central securities depository participant as
contemplated in the Financial Markets Act;

 

1.2.6                    
"Delivery Date" ‐ the
Delivery Date in terms of, and as defined in, the DRD Exchange Agreement;

 

1.2.7                    
"Dispose" ‐ sell,
transfer, cede, make over, give, donate, exchange, dispose of, unbundle,
distribute or otherwise alienate or any agreement, obligation or arrangement to
do any of the foregoing; and "Disposal" will be construed
accordingly;

 

1.2.8                    
"DRD" – DRDGOLD
Limited (registration number 1895/000926/06), a public company duly
incorporated and registered in accordance with the laws of South Africa (the
ordinary shares of which are listed on the JSE and the NYSE in the form of
American Depository Shares);

 

1.2.9                    
"DRD Exchange Agreement" – the
Exchange Agreement to be entered into between DRD and Sibanye on or about the
date of conclusion of this Agreement and in terms of which, inter alia, DRD is
to become the owner of all of the issued shares of SPV in return for the issue
to Sibanye of DRD Shares;

 

1.2.10                  
"Encumbrance" ‐ includes
any mortgage bond, notarial bond, pledge, lien, hypothecation, assignment, cession‐in‐securitatem
debiti, deposit by way of security, option over, right of retention over, right
of first refusal, restriction on disposal or any other agreement, arrangement
or obligation (whether conditional or not) which has or will have the effect of
giving to one Person a security interest in or preferential treatment in
respect of another Person's assets, but excludes statutory preferences, and
"Encumber" and "Encumbered" shall be
construed accordingly;

 

1.2.11                  
"Financial Markets Act" – the
Financial Markets Act No 19 of 2012;

 

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1.2.12                  
"First Exchange Agreement" – the
Exchange Agreement to be entered into between Sibanye, the Target and DRD on or
about the date of conclusion of this Agreement and in terms of which Sibanye
will dispose of a tailings business to the Target in exchange for the issue by
the Target of shares to Sibanye;

 

1.2.13                  
"Governmental Authority" - any
government or governmental (national, provincial, regional, district, municipal
or local), administrative, regulatory, fiscal or judicial authority, agency,
body, court, department, commission, tribunal, registry or any state-owned,
state-controlled or legislatively constituted authority, agency or commission
which principally performs public, governmental or regulatory functions
including the DMR;

 

1.2.14                  
"Guaranteed Obligations" – the
due, punctual and full payment and performance which SPV has, or may from time
to time have, to Sibanye on or after the Delivery Date under or in terms of any
agreement/s to give effect to the Composite Transaction;

 

1.2.15                  
"JSE" – JSE Limited
(registration number 2005/022939/06), a public company duly incorporated and
registered in accordance with the laws of South Africa and licenced as an
exchange under the Financial Markets Act;

 

1.2.16                  
"Listings Requirements" – the
Listings Requirements of the JSE;

 

1.2.17                  
"Longstop Date" – will
have the meaning ascribed thereto in the First Exchange Agreement;

 

1.2.18                  
"NYSE" – the New York
Stock Exchange;

 

1.2.19                  
"Parties" ‐ collectively,
DRD and Sibanye and "Party" shall mean any one of them, as the
context may require;

 

1.2.20                  
"Person" ‐ includes
any natural or juristic person, association, business, close corporation, company,
concern, enterprise, firm, partnership, joint venture, trust, undertaking,
voluntary association, body corporate, and any similar entity;

 

1.2.21                  
"Sibanye" – Sibanye
Gold Limited (registration number 2002/031431/07), a public company duly
incorporated and registered in accordance with the laws of South Africa (the ordinary
shares of which are listed on the JSE and the NYSE);

 

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1.2.22                  
"Signature Date" ‐ when
this Agreement has been signed by both Parties (whether or not in counterpart),
the latest of the dates on which this Agreement (or a counterpart) was signed
by a Party;

 

1.2.23                  
"South Africa" ‐ the
  Republic of South Africa;

 

1.2.24                  
"SPV" - K2017449061
(South Africa) Proprietary Limited (registration number 2017/449061/07) (to be renamed WRTRP Proprietary Limited), a private company
duly incorporated and registered in accordance with the laws of South Africa;

 

1.2.25                  
"Suspensive  Condition" ‐ the
suspensive condition stipulated in 2;

 

1.3              
any reference to any statute, regulation or
other legislation shall be a reference to that statute, regulation or other
legislation as at the Signature Date, and as amended or substituted from time
to time;

 

1.4              
any reference to holding companies or
subsidiaries shall be construed in accordance with the meanings ascribed to
such terms in the Companies Act;

 

1.5              
if any provision in a definition is a
substantive provision conferring a right or imposing an obligation on any Party
then, notwithstanding that it is only in a definition, effect shall be given to
that provision as if it were a substantive provision in the body of this
Agreement;

 

1.6              
where any term is defined within a particular
clause other than this 1,
that term shall bear the meaning ascribed to it in that clause wherever it is
used in this Agreement;

 

1.7              
where any number of days is to be calculated
from a particular day, such number shall be calculated as excluding such
particular day and commencing on the next day. If the last day of such number
so calculated falls on a day which is not a Business Day, the last day shall be
deemed to be the next succeeding day which is a Business Day;

 

1.8              
any reference to days (other than a reference to
Business Days), months or years shall be a reference to calendar days, calendar
months or calendar years, respectively;

 

1.9              
any term which refers to a South African legal
concept or process (for example, without limiting the foregoing, winding‐up
or curatorship) shall be deemed to include a reference to the equivalent or
analogous concept or process in any other jurisdiction in which this Agreement
may apply or to the laws of which a Party may be or become subject; and

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1.10           
the use of the word "including",
"includes" or "include" followed by a
specific example/s shall not be construed as limiting the meaning of the
general wording preceding it and the eiusdem generis rule shall not be
applied in the interpretation of such general wording or such specific
example/s.

 

The terms of this Agreement having
been negotiated, the rule of interpretation which prescribes that, in the event
of ambiguity, a contract should be interpreted against the party responsible
for its drafting shall not be applied in the interpretation of this Agreement.

 

2       
SUSPENSIVE CONDITION

 

2.1              
This whole Agreement (other than 1,
this 2 and 6 to 11 (both inclusive), by which the Parties shall be bound
with effect from the Signature Date) is subject to the suspensive condition
that on or before the Longstop Date, all of the suspensive conditions contained in the First
Exchange Agreement, save for any suspensive condition therein relating to this
Agreement being signed and becoming unconditional, shall have been fulfilled or
waived (as the case may be).

 

2.2              
The  Suspensive  C ☐ nditi ☐ n  may  n ☐ t  be  waived.

 

2.3              
If the Suspensive Condition is not fulfilled for
any reason whatever, then ‐

 

2.3.1                    
this whole Agreement (other than 1,
this 2 and 6 to 11 (both inclusive), by which the Parties shall remain
bound) shall be of no force or effect;

 

2.3.2                    
the Parties shall be entitled to be restored as
near as possible to the positions in which they would have been, had this
Agreement not been entered into; and

 

2.3.3                    
neither Party shall have any claim against the
other in terms of this Agreement except for such claims (if any) as may arise
from a breach of this 2 or from any other provision of this Agreement by
which the Parties remain bound.

 

3       
guarantee 

 

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3.1              
DRD hereby irrevocably and
unconditionally –

 

3.1.1                    
guarantees and undertakes as a principal and
independent obligation (and not merely as an ancillary obligation) to and in
favour of Sibanye the due, punctual and full payment and performance of the
Guaranteed Obligations;

 

3.1.2                    
undertakes to Sibanye that whenever SPV does not
pay any Guaranteed Obligation when due, DRD shall, immediately on demand, pay
that amount as if it was the principal obligor;

 

3.1.3                    
undertakes to Sibanye that whenever SPV does not
perform punctually any Guarantee Obligation, it shall, immediately on demand, perform
such obligations as if it was the principal obligor;

 

3.1.4                    
indemnifies (as a separate and primary
obligation) Sibanye immediately on demand against any and all losses,
liabilities, damages, costs or expenses (but excluding any indirect, special,
consequential or incidental loss or damage) suffered by Sibanye if any
indebtedness, payment obligation or other obligation guaranteed by DRD in terms
of this Guarantee is –

 

3.1.4.1                           
entirely, partially or conditionally suspended
for the duration of business rescue proceedings; 

 

3.1.4.2                           
entirely, partially or conditionally cancelled
on an application to court pursuant to business rescue proceedings;

 

3.1.4.3                           
compromised or discharged in whole or part
pursuant to the adoption of a business rescue plan;

 

3.1.4.4                           
compromised in terms of section 155 of the Companies
Act; or

 

3.1.4.5                           
unenforceable, invalid, illegal or ineffective or
becomes unenforceable, invalid, illegal or ineffective for any reason whatsoever,

 

the amount of the loss in these events
being the amount which Sibanye
would otherwise have been entitled to recover; and

 

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3.1.5                    
agrees that if any Guaranteed Obligation is or
becomes unenforceable, invalid or illegal, it shall, as an independent and
primary obligation, indemnify Sibanye, immediately on demand against any cost,
loss or liability which Sibanye incur as a result of SPV not paying any amount which
would, but for such unenforceability, invalidity or illegality, have been
payable by it. The amount payable by DRD under this indemnity will not exceed
the amount they would have had to pay under this 3 if the amount claimed
had been recoverable on the basis of a guarantee.

 

3.2              
DRD agrees that its
obligations hereunder are principal (and not accessory) obligations.

 

3.3              
Nothing herein shall be construed as DRD
guaranteeing its own obligations.

 

4       
DURATION 

 

4.1              
This Guarantee is a continuing covering
guarantee and shall remain in full force and effect notwithstanding any
temporary fluctuation in or partial extinction of the Guaranteed Obligations or
any prior payment under this Guarantee, and shall only be terminated in terms
of 4.2.2.

 

4.2              
This Guarantee shall -

 

4.2.1                    
become of full force and effect on the Delivery Date;

 

4.2.2                    
expire upon all of the Guaranteed Obligations
having been fully and finally discharged; and

 

4.2.3                    
be irrevocable as from the date referred to
in 4.2.1 until the expiry thereof in terms of 4.2.2.

 

4.3              
The rights of Sibanye under this Guarantee shall
in no way be affected or diminished if Sibanye at any time obtain additional
suretyships, guarantees, securities or indemnities (or other security) in
connection with the Guaranteed Obligations.

 

5       
RENUNCIATION OF BENEFITS and waiver of defences

 

5.1              
DRD hereby (without prejudice to or limitation
of any other provision of this Guarantee) –

 

5.1.1                    
renounces the benefits of all otherwise
applicable legal immunities, defences and exceptions to the extent that they
would be applicable in the absence of this 

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renunciation, including the defences and exceptions of "cession
of actions", "excussion", "division", "de
duobus vel pluribus reis debendi", "non causa debiti",
"errore calculi", "no value received" and
"revision of accounts", with the meaning and effect of all of which it
declares itself to be fully acquainted;

 

5.1.2                    
agrees that all admissions and acknowledgements
of indebtedness by SPV made after the Delivery Date shall be binding on it; and

 

5.1.3                    
without derogating from 5.1.1, waives notice of
acceptance, presentment, demand, notice of dishonour, protest, filing of claims
in the event of a liquidation or similar process, any right it may have of
first requiring Sibanye to proceed against or enforce any other rights or
security or claim payment from any Person before claiming from DRD hereunder
and any other notice whatsoever and any rights it may have to proceed against
or claim payment from SPV or any third party, to take action or obtain judgment
in any court against SPV, to make, file or prove any claim in the winding-up or
dissolution of SPV or to enforce or seek to enforce any guarantee or security
granted by SPV or any third party, before making payment under this Guarantee.

 

5.2              
The aforegoing renunciations and waivers apply
irrespective of any provision of any agreement or document to the contrary.

 

5.3              
Neither the obligations of DRD set out herein,
nor the rights, powers and remedies conferred upon Sibanye in respect of this
Guarantee shall be discharged, impaired or otherwise affected by -

 

5.3.1                    
SPV being liquidated, wound‐up (whether
provisionally or finally), being placed under business rescue, supervision or
suffering any similar legal disability or any change in the status, function,
control and/or ownership of SPV;

 

5.3.1                    
any failure to fully take any security now or
hereafter agreed to be taken in relation to the obligations of DRD hereunder;

 

5.3.2                    
the fact that the Guaranteed Obligations may be
varied or novated, whether by agreement, operation of law or otherwise;

 

5.3.3                    
the fact that any other intended security may
not be obtained or be defective or may be released or may cease to be held for
any other reason;

 

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5.3.4                    
the fact that Sibanye may not exercise any of their
rights against SPV timeously or at all;

 

5.3.5                    
the fact that Sibanye may elect any particular
remedy against SPV to the exclusion of any other remedy.

 

5.4              
Solely for the sake of clarity and without
prejudice to or limitation of the foregoing provisions of this Guarantee, this
Guarantee does not constitute a suretyship and shall be construed as a primary
undertaking giving rise to a principal obligation by DRD.

 

5.5              
DRD warrants, represents and undertakes in
favour of Sibanye that –

 

5.5.1                    
it is a company with limited liability duly
incorporated and validly existing under the laws of its jurisdiction of
incorporation;

 

5.5.2                    
it has -

 

5.5.2.1                           
the legal authority, capacity and power to enter
into and perform under; and 

 

5.5.2.2                           
taken all necessary actions (whether corporate,
internal or otherwise) to authorise its entry into, and performance of its
obligations under,

 

this Guarantee;

 

5.5.3                    
all authorisations, consents, approvals,
resolutions, licences, exemptions, filings and registrations which are required
and/or necessary under all Applicable Laws -

 

5.5.3.1                           
to enable it to lawfully enter into, exercise
its rights and comply with its obligations under this Guarantee to which it is
a party; and

 

5.5.3.2                           
to make this Guarantee to which it is a party
admissible in evidence in the South Africa,

 

have been obtained or effected and
are, and will for the duration of the Guarantee remain, in full force and
effect;

 

5.5.4                    
the obligations expressed to be assumed by it
under this Guarantee are legal and valid and are binding on, and enforceable
against it.

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6       
CONFIDENTIALITY 

 

6.1              
Subject to 6.2, no Party shall, at any time
after the Signature Date, directly or indirectly disclose, or directly or
indirectly use, whether for its own benefit or that of any other Person, ‐

 

6.1.1                    
any information ‐

 

6.1.1.1                           
regarding the contents of this Agreement;

 

6.1.1.2                           
relating to the Company, its assets and affairs,
including all communications (whether written, oral or in any other form) and
all reports, statements, schedules and other data concerning any financial,
technical, labour, marketing, administrative, accounting or other matter,

 

(collectively, the "Confidential
Information"); 

 

6.1.2                    
any document or other record (whether in
electronic or any other medium whatsoever) containing Confidential Information
which is supplied to it by the other Party as well as documents, diagrams and
records which are produced by it (whether or not by copying, photocopying or
otherwise reproducing documents or records supplied to it), and containing any
Confidential Information ("Confidential Records"). 

 

6.2              
Notwithstanding 6.1, Confidential Information
may be disclosed by a Party ("Disclosing Party") ‐

 

6.2.1                    
to any expert appointed in terms of this
Agreement;

 

6.2.2                    
to the extent to which the prior written consent
for such disclosure has been obtained from the other Party/ies;

 

6.2.3                    
to the extent to which disclosure is required by
law (excluding contractual obligations) or by the rules of any stock exchange
by which it (or any of its Affiliates) is bound, in which event the Disclosing
Party shall, unless prohibited from doing so by any such law, obtain the other
Party's/Parties' consent, not to be withheld unreasonably, for the manner of
such disclosure; provided that the Disclosing Party shall not be obliged so to
obtain the consent of the other Party/ies if such disclosure is required before
the 

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approval can reasonably be obtained but the
Disclosing Party shall in these circumstances promptly notify the other
Party/ies of the full details of such disclosure, including the reasons why
time did not permit such consent to be obtained;

 

and Confidential Records may be
disclosed by a Disclosing Party to the Disclosing Party's directors,
responsible employees and professional advisors who require such disclosure for
the purpose of the Disclosing Party's implementing or enforcing this Agreement
or obtaining professional advice or for the purpose of complying with any law. Any
conduct by any such director, employee or professional advisor which would, if
that Person had been party to this 6, have been a breach of this 6
shall be deemed to be a breach of this 6 by the Disclosing Party;

 

6.2.4                    
to the extent to which it ‐

 

6.2.4.1                           
is Made Public other than as a result of any
breach of this Agreement or any other agreement. The expression "Made Public"
shall, for this purpose, have the same meaning as when it is used in the
insider trading provisions of the Financial Markets Act, which is not limited
to the circumstances referred to in section 79 of that Act;

 

6.2.4.2                           
corresponds in substance to information
disclosed and/or made available by a third party to the Disclosing Party at any
time without any obligation not to disclose same, unless the Disclosing Party
knows that the third party from whom it received that information is prohibited
from transmitting the information to Disclosing Party by a contractual, legal
or fiduciary obligation to any other party;

 

6.2.4.3                           
is information which was already in the
possession of the Disclosing Party prior to its disclosure by the other Party
to the Disclosing Party or is independently developed by the Disclosing Party
without reference to the Confidential Information.

 

6.3              
No Party shall issue any press release or any
other public document or make any public statement in each case relating to or
connected with or arising out of this Agreement and/or the Composite
Transaction without obtaining the prior approval of the other Party to the
contents thereof and the manner of its presentation and publication; provided
that such approval shall not be unreasonably withheld or delayed; provided
further that if a Party is required to make a public announcement by law it
shall be entitled to do so without the 

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approval of the
other Party if it has given the other Party a reasonable opportunity (in the
circumstances) to comment on such public announcement.

 

7       
DISPUTES 

 

7.1              
Save as expressly otherwise provided for in this
Agreement, any dispute arising out of or in connection with this Agreement,
including any dispute as to its existence, validity, enforceability or
termination, shall be finally resolved in accordance with the rules of the
Arbitration Foundation of Southern Africa (or its successor-in-title) ("AFSA")
by an arbitrator appointed by AFSA. There shall be a right of appeal as
provided for in article 22 of such rules.

 

7.2              
If AFSA no longer exists then the arbitrators
shall be appointed by the President for the time being of the Law Society of
the Northern Provinces Law Society and the arbitration shall be conducted in
accordance with the Arbitration Act No 42 of 1965.

 

7.3              
Notwithstanding anything to the contrary
contained in this 7, any Party shall be entitled to obtain interim relief
on an urgent basis from any competent court having jurisdiction.

 

7.4              
For the purposes of 7.3 and for the
purposes of having any award made by the arbitrator being made an order of
court, each of the Parties hereby submits itself to the non‐exclusive
jurisdiction of the High Court of South Africa, Gauteng Local Division,
Johannesburg. 

 

7.5              
This 7 is severable from the rest of this Agreement
and shall remain in full force and effect notwithstanding any termination or
cancellation of this Agreement, or any part thereof.

 

8       
DOMICILIUM AND NOTICES

 

8.1              
The Parties choose domicilium citandi et
executandi ("Domicilium") for all purposes relating to
this Agreement, including the giving of any notice, the payment of any sum, the
serving of any process, as follows ‐

 

8.1.1                    
DRDGOLD - 

 

physical   ‐      2nd
Floor, North Tower 

1 Sixty Building 

160 Jan Smuts Avenue

Rosebank

2196

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e‐mail     ‐      niel.pretorius@drdgold.com; and

riaan.davel@drdgold.com 

 

attention:       The CEO and the CFO

 

8.1.2                    
Sibanye - 

 

physical   ‐      Constantia
Office Park

Bridgeview House

Ground Floor

(cnr 14th Avenue and
Hendrik Potgieter Street)

Gauteng

1709

 

e‐mail     ‐      richard.stewart@sibanyestillwater.com

cain.farrel@sibanyestillwater.com

 

attention:       Richard Stewart
(EVP: Business Development)

       Cain Farrel (Company Secretary)

 

8.2              
Any Party shall be entitled from time to time,
by giving written notice to the other, to vary its physical Domicilium 
to any other physical address (not being a post office box or poste restante)
in South Africa and to vary its facsimile and/or email Domicilium  to any
other facsimile number and/or email address.

 

8.3              
Any notice given or payment made by a Party to any
other ("Addressee") which is delivered by hand between the
hours of 09:00 and 17:00 on any Business Day to the Addressee's physical Domicilium 
for the time being shall be deemed to have been received by the Addressee at
the time of delivery.

 

8.4              
Any notice given by a Party to any other which
is successfully transmitted by email or facsimile to the Addressee's email or facsimile
Domicilium  for the time being shall be deemed (unless the contrary is
proved by the Addressee) to have been received by the Addressee at the time of
successful transmission thereof or, if such date is not a Business Day, on the
next day which is a Business Day.

 

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8.5              
This 8 shall not operate so as to
invalidate the giving or receipt of any written notice which is actually
received by the Addressee other than by a method referred to in this 8.

 

8.6              
Any notice in terms of or in connection with
this Agreement shall be valid and effective only if in writing and if received
or deemed to be received by the Addressee.

 

9       
GENERAL 

 

9.1              
This Agreement constitutes the sole record of
the agreement between the Parties in relation to the subject matter hereof. No
Party shall be bound by any express, tacit or implied term, representation,
warranty, promise or the like not recorded herein. This Agreement supersedes
and replaces all prior commitments, undertakings or representations, whether
oral or written, between the Parties in respect of the subject matter hereof.

 

9.2              
No addition to, variation, novation or agreed
cancellation of any provision of this Agreement shall be binding upon the
Parties unless reduced to writing and signed by or on behalf of the Parties.

 

9.3              
No waiver, indulgence or extension of time which
a Party ("Grantor") may grant to the other/s, nor any delay or
failure by the Grantor to enforce, whether completely or partially, any of its
rights, shall constitute a waiver of or, whether by estoppel or otherwise,
limit any of the existing or future rights of the Grantor in terms hereof, save
in the event and to the extent that the Grantor has signed a written document
expressly waiving or limiting such right.

 

9.4              
Save as expressly provided in this Agreement, no
Party shall be entitled to cede, delegate, Encumber, assign or otherwise
transfer any of its rights and/or obligations in terms of, and/or interest in,
this Agreement to any third party without the prior written consent of the
other Parties.

 

9.5              
No consent or approval in terms of or in
connection with this Agreement shall be valid or effective unless in writing
and signed by or on behalf of the Party/ies giving such consent or approval.

 

9.6              
For the purposes of this Agreement –

 

9.6.1                    
no data message, as defined in the Electronic
Communications and Transactions Act No 25 of 2002 ("ECTA"),
other than an email or facsimile, shall constitute writing;

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9.6.2                    
no electronic signature or advanced electronic
signature, as defined in ECTA, shall constitute a signature, except for the
purposes of varying any date referred to in this Agreement or giving any
consent or approval in terms of this Agreement.

 

9.7              
Without prejudice to any other provision of this
Agreement, any successor‐in‐title, including any executor, heir, liquidator,
business rescue practitioner, curator or trustee, of a Party shall be bound by
this Agreement.

 

9.8              
The signature by either Party of a counterpart
of this Agreement shall be as effective as if that Party had signed the same
document as the other Party.

 

9.9              
The Parties warrant to each other that they have
the legal capacity and authority required to conclude and implement this Agreement
and that such conclusion and implementation do not conflict with any obligation
or restriction applicable to either Party, whether in terms of any law, its
constitution or otherwise.

 

10     
GOVERNING LAW

 

This Agreement shall in all respects
(including its existence, validity, interpretation, implementation, termination
and enforcement) be governed by the law of South Africa which is
applicable to agreements executed and wholly performed within South Africa.

 

11     
COSTS 

 

Each
Party shall bear and pay its own costs in relation to the negotiation,
drafting, finalisation, signing and implementation of this Agreement.

 

 

	
  Signed at Sandton on 22 November
  2018

  
	
                                                               for

  	
  DRDGOLD Limited

  
	
   

  	
   

   

   

   

  
	
   

  	
  who warrants that he is duly

  authorised hereto

  

 

 

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  Signed at
  Sandton on 22 November 2018

  
	
                                                               for

  	
  Sibanye Gold Limited

  
	
   

  	
   

   

   

   

  
	
   

  	
  who warrants that he is duly

  authorised hereto

  

 

                                                                                                                                              16EXECUTION VERSION 

  

 

DRD OPTION AGREEMENT

 

between

 

DRDGOLD LIMITED

 

and

 

SIBANYE GOLD LIMITED

 

 

	
  155 – 5th
  Street Sandton 2196

  	
  Docex 111
  Sandton

  	
  enquiries@werksmans.com

  
	
  Johannesburg
  South Africa

  	
  Tel    +27 11 535 8000

  	
  www.werksmans.com

  
	
  Private Bag
  10015 Sandton 2146

  	
  Fax   +27 11 535 8600

  	
   

  

 

 

 

 

 

KJT/JAJ

22112017/SIBA24179.7

DRD Option Agreement - Execution - 22 Nov
2017/#4687327v1

 

TABLE OF CONTENTS

1        interpretation . 1

2        INTRODUCTION . 7

3        SUSPENSIVE
CONDITION. 7

4        option . 8

5        CLOSING
AND DELIVERY. 9

6        WARRANTIES . 11

7        INDEMNITies . 13

8        LIMITATION
OF LIABILITY. 14

9        CONFIDENTIALITY . 17

10     BREACH . 19

11     DISPUTES . 19

12     DOMICILIUM
AND NOTICES. 20

13     GENERAL . 22

14     GOVERNING
LAW.. 23

15     COSTS . 23

 

                                                                                                                                               i

KJT/JAJ

22112017/SIBA24179.7

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DRD OPTION AGREEMENT

 

between

 

DRDGOLD LIMITED

 

and

 

SIBANYE GOLD
LIMITED

 

 

1       
interpretation 

 

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

 

1.1              
a word or an expression which denotes ‐

 

1.1.1                    
any gender includes the other genders;

 

1.1.2                    
a natural person includes an artificial or
juristic person and vice versa; 

 

1.1.3                    
the singular includes the plural and vice
versa; 

 

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

 

1.2.1                    
"Agreement" ‐ this
agreement, together with its annexures (if any), as amended from time to time;

 

1.2.2                    
"Applicable Laws" ‐ in
relation to any Party, includes all statutes, subordinate legislation, common
law, regulations, ordinances, by‐laws, directives, codes of practice,
circulars, guidance or practice notices, judgments, decisions, standards and
similar provisions ‐

 

1.2.2.1                           
which are prescribed, adopted, made, published
or enforced by any Governmental Authority; and

 

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1.2.2.2                           
compliance with which is (or was or will be, at
the relevant time referred to in this Agreement) mandatory for that Party; 

 

1.2.3                    
"Business Day" ‐ any
day which is not a Saturday, a Sunday or an official public holiday in South
Africa;

 

1.2.4                    
"Closing Date" – unless
otherwise agreed by the Parties in writing and subject to 5.2, the later
of –

 

1.2.4.1                           
the tenth Business Day after the Exercise Date;
and

 

1.2.4.2                           
if it is not possible to credit the Sibanye
Securities Account with the Option Shares as contemplated in 5.4 on the
date referred to in 1.2.4.1, the first Business Day after that date on
which it is possible to credit the Sibanye Securities Account with the Option
Shares;

 

1.2.5                    
"Companies Act" ‐ the
Companies Act No 71 of 2008;

 

1.2.6                    
"Composite Transaction" – will
have the meaning ascribed thereto in the First Exchange Agreement;

 

1.2.7                    
"CSDP" – a nominated
depository institution for central securities depository participant as
contemplated in the Financial Markets Act;

 

1.2.8                    
"Delivery Date" ‐ the
Delivery Date in terms of, and as defined in, the First Exchange Agreement;

 

1.2.9                    
"Dispose" ‐ sell,
transfer, cede, make over, give, donate, exchange, dispose of, unbundle,
distribute or otherwise alienate or any agreement, obligation or arrangement to
do any of the foregoing; and "Disposal" will be construed
accordingly;

 

1.2.10                  
"DMR" – the Department
of Mineral Resources;

 

1.2.11                  
"DRD" – DRDGOLD
Limited (registration number 1895/000926/06), a public company duly
incorporated and registered in accordance with the laws of South Africa (the
ordinary shares of which are listed on the JSE and the NYSE in the form of
American Depository Shares);

 

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1.2.12                  
"DRD Exchange Agreement" – the
Exchange Agreement to be entered into between DRD and Sibanye on or about the
date of conclusion of this Agreement and in terms of which, inter alia, DRD is
to become the owner of all of the issued shares of Sibanye SPV in return for
the issue to Sibanye of DRD Shares;

 

1.2.13                  
"DRD Shares" – ordinary
shares of DRD;

 

1.2.14                  
"Encumbrance" ‐ includes
any mortgage bond, notarial bond, pledge, lien, hypothecation, assignment, cession‐in‐securitatem
debiti, deposit by way of security, option over, right of retention over, right
of first refusal, restriction on disposal or any other agreement, arrangement
or obligation (whether conditional or not) which has or will have the effect of
giving to one Person a security interest in or preferential treatment in
respect of another Person's assets, but excludes statutory preferences, and
"Encumber" and "Encumbered" shall be
construed accordingly;

 

1.2.15                  
"Exercise Date" – the
date on which the Option Notice is delivered to DRD by Sibanye in accordance
with 4.2.1; 

 

1.2.16                  
"Financial Markets Act" – the
Financial Markets Act No 19 of 2012;

 

1.2.17                  
"First Exchange Agreement" – the
Exchange Agreement to be entered into between Sibanye, Sibanye SPV and DRD
on or about the date of conclusion of this Agreement and in terms of which
Sibanye will dispose of a tailings business to Sibanye SPV in exchange for
the issue by Sibanye SPV of shares to Sibanye;

 

1.2.18                  
"Governmental Authority" - any
government or governmental (national, provincial, regional, district, municipal
or local), administrative, regulatory, fiscal or judicial authority, agency,
body, court, department, commission, tribunal, registry or any state-owned,
state-controlled or legislatively constituted authority, agency or commission
which principally performs public, governmental or regulatory functions
including the DMR;

 

1.2.19                  
"JSE" – JSE Limited
(registration number 2005/022939/06), a public company duly incorporated and
registered in accordance with the laws of South Africa and licenced as an
exchange under the Financial Markets Act;

 

1.2.20                  
"Listings Requirements" – the
Listings Requirements of the JSE;

 

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1.2.21                  
"Longstop Date" – will
have the meaning ascribed thereto in the First Exchange Agreement;

 

1.2.22                  
"Losses" ‐ actual
or contingent losses, liabilities, damages, costs (including legal costs on the
scale as between attorney and own client) and expenses of any nature
whatsoever;

 

1.2.23                  
"Nominated Account" – shall
have the meaning ascribed thereto in 5.1.2;

 

1.2.24                  
"NYSE" – the New York
Stock Exchange;

 

1.2.25                  
"Option" – has the
meaning ascribed thereto in 4.1;

 

1.2.26                  
"Option Notice" – has
the meaning ascribed thereto in 4.2.1;

 

1.2.27                  
"Option Period" – the
period commencing on the Delivery Date and expiring 24 months thereafter;

 

1.2.28                  
"Option Price" – the
price payable by Sibanye to DRD for each Option Share, being equal to –

 

1.2.28.1                        
the volume weighted average price per DRD Share
at which DRD Shares traded on the JSE during the 30 Trading Days preceding the
Exercise Date; minus

 

1.2.28.2                        
10%; 

 

1.2.29                  
"Option Shares" – such
number of DRD Shares as will, after the allotment and issue thereof to Sibanye
in terms of 4, result in Sibanye holding 50.1% of all DRD Shares in issue
(including any DRD Shares held as treasury shares);

 

1.2.30                  
"Parties" ‐ collectively,
DRD and Sibanye and "Party" shall mean any one of them, as the
context may require;

 

1.2.31                  
"Person" ‐ includes
any natural or juristic person, association, business, close corporation, company,
concern, enterprise, firm, partnership, joint venture, trust, undertaking,
voluntary association, body corporate, and any similar entity;

 

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1.2.32                  
"Sibanye" – Sibanye
Gold Limited (registration number 2002/031431/07), a public company duly
incorporated and registered in accordance with the laws of South Africa (the ordinary
shares of which are listed on the JSE and the NYSE);

 

1.2.33                  
"Sibanye Securities Account" – the
securities account established by Sibanye prior to the Delivery Date, into
which the Option Shares will be deposited in terms of 5, it being agreed
that Sibanye will, in writing, provide DRD with full details of the Sibanye
Securities Account at least five Business Days prior to the Delivery Date;

 

1.2.34                  
"Sibanye SPV" - K2017449061
(South Africa) Proprietary Limited (registration number 2017/449061/07)
(to be renamed WRTRP Proprietary Limited), a private company duly incorporated
and registered in accordance with the laws of South Africa;

 

1.2.35                  
"Signature Date" ‐ when
this Agreement has been signed by both Parties (whether or not in counterpart),
the latest of the dates on which this Agreement (or a counterpart) was signed
by a Party;

 

1.2.36                  
"South Africa" ‐ the
  Republic of South Africa;

 

1.2.37                  
"Standstill Period" – shall
have the meaning ascribed thereto in 4.3.1;

 

1.2.38                  
"Suspensive  Condition" ‐ the
suspensive condition stipulated in 3.1;

 

1.2.39                  
"Trading Days" – any
day on which the JSE is open to settle trades in shares listed on the JSE;

 

1.2.40                  
"Warranties" ‐ the
warranties, representations and undertakings given by DRD to Sibanye in terms
of this Agreement and "Warranty" shall be construed accordingly;

 

1.3              
any reference to any statute, regulation or
other legislation shall be a reference to that statute, regulation or other
legislation as at the Signature Date, and as amended or substituted from time
to time;

 

1.4              
any reference to holding companies or
subsidiaries shall be construed in accordance with the meanings ascribed to
such terms in the Companies Act;

 

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1.5              
if any provision in a definition is a
substantive provision conferring a right or imposing an obligation on any Party
then, notwithstanding that it is only in a definition, effect shall be given to
that provision as if it were a substantive provision in the body of this
Agreement;

 

1.6              
where any term is defined within a particular
clause other than this 1,
that term shall bear the meaning ascribed to it in that clause wherever it is
used in this Agreement;

 

1.7              
where any number of days is to be calculated
from a particular day, such number shall be calculated as excluding such
particular day and commencing on the next day. If the last day of such number so
calculated falls on a day which is not a Business Day, the last day shall be
deemed to be the next succeeding day which is a Business Day;

 

1.8              
any reference to days (other than a reference to
Business Days), months or years shall be a reference to calendar days, calendar
months or calendar years, respectively;

 

1.9              
any term which refers to a South African legal
concept or process (for example, without limiting the foregoing, winding‐up
or curatorship) shall be deemed to include a reference to the equivalent or analogous
concept or process in any other jurisdiction in which this Agreement may apply
or to the laws of which a Party may be or become subject; and

 

1.10           
the use of the word "including",
"includes" or "include" followed by a
specific example/s shall not be construed as limiting the meaning of the
general wording preceding it and the eiusdem generis rule shall not be
applied in the interpretation of such general wording or such specific
example/s.

 

The terms of this Agreement having
been negotiated, the rule of interpretation which prescribes that, in the event
of ambiguity, a contract should be interpreted against the party responsible
for its drafting shall not be applied in the interpretation of this Agreement.

 

2       
INTRODUCTION 

 

2.1              
The Parties record that as part of the Composite
Transaction –

 

2.1.1                    
Sibanye wishes to acquire the right to increase
its shareholding in DRD to 50.1% of DRD Shares in issue; and

 

2.1.2                    
DRD is prepared to grant Sibanye the right to
increase its shareholding in DRD to 50.1% of the DRD Shares in issue.

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2.2              
To give effect to 2.1, the Parties agree to the
Option on the terms and conditions set out in this Agreement.

 

3       
SUSPENSIVE CONDITION

 

3.1              
This whole Agreement (other than 1,
this 3 and 9 to 15 (both inclusive), by which the Parties shall be bound
with effect from the Signature Date) is subject to the suspensive condition
that on or before the Longstop Date, all of the suspensive conditions contained in the First
Exchange Agreement, save for any suspensive condition therein relating to this
Agreement being signed and becoming unconditional, shall have been fulfilled or
waived (as the case may be).

 

3.2              
The  Suspensive  C ☐ nditi ☐ n  may  n ☐ t  be  waived.

 

3.3              
If the Suspensive Condition is not fulfilled for
any reason whatever, then ‐

 

3.3.1                    
this whole Agreement (other than 1,
this 3 and 9 to 15 (both inclusive), by which the Parties shall remain
bound) shall be of no force or effect;

 

3.3.2                    
the Parties shall be entitled to be restored as
near as possible to the positions in which they would have been, had this
Agreement not been entered into; and

 

3.3.3                    
neither Party shall have any claim against the
other in terms of this Agreement except for such claims (if any) as may arise
from a breach of this 3 or from any other provision of this Agreement by
which the Parties remain bound.

 

4       
option 

 

4.1              
Grant 

 

DRD hereby grants to Sibanye the
irrevocable right and option ("Option") to call on DRD, which
will then be obliged, to allot and issue the Option Shares to Sibanye at the
Option Price on the terms and conditions set out in this 4 and against
compliance by Sibanye with the applicable provisions of 5.

 

4.2              
Exercise 

 

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4.2.1                    
Subject to 4.2.2, Sibanye shall be entitled
to exercise the Option by delivering a written notice to that effect to DRD
("Option Notice") at any time during
the Option Period. The date on which the Option Notice
is delivered by Sibanye to DRD shall be the "Exercise Date". 

 

4.2.2                    
The Option shall lapse and shall not be capable
of being exercised if, at any time during the Option Period but prior to
delivery of the Option Notice, Sibanye has Disposed of all or any of the DRD
Shares issued to it under the DRD Exchange Agreement and in such event this
Agreement shall terminate automatically.

 

4.3              
Dilution 

 

4.3.1                    
It is agreed that DRD
shall not issue any DRD Shares during the period between the Exercise Date and
the Closing Date ("Standstill Period"). 

 

4.3.2                    
DRD shall not issue any DRD Shares and/or any
securities convertible into DRD Shares and/or grant any options and/or rights
to require the issue of DRD Shares or securities convertible into DRD
Shares at any time on or after the Delivery Date; provided that the provisions
of this 4.3.2 –

 

4.3.2.1                           
shall lapse and cease to be of any further force
and effect on the Option lapsing in terms of 4.2.2 or on such earlier date
as falls on the fifth Business Day after the Parties have complied with their
respective obligations on the Closing Date; and

 

4.3.2.2                           
shall not apply to the issue of any DRD Shares
pursuant to a rights issue in terms of which Sibanye (and the other
shareholders of DRD) are given an opportunity to follow their rights.

 

5       
CLOSING AND DELIVERY

 

5.1              
During the first three Business Days of the
Standstill Period –

 

5.1.1                    
to the extent that they have not already done so
in terms of this Agreement or otherwise in writing, the Parties shall agree in
writing –

 

5.1.1.1                           
the exact number of DRD Shares as shall constitute
the Option Shares (it being recorded that the Option Shares are defined by
reference to a percentage);

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5.1.1.2                           
the Option Price payable per Option Share; and

 

5.1.2                    
DRD shall in writing nominate a bank account
with a bank in South Africa into which the Option Price payable in respect of
the Option Shares is to be paid ("Nominated Account"). 

 

5.2              
If the Parties are unable during the first three
Business Days of the Standstill Period to reach agreement as contemplated
in 5.1 either Party may refer the matter to an independent firm of
chartered accountants agreed to in writing by the Parties or, failing
agreement, appointed by the Chairman of the South African Institute of
Chartered Accountants ("Expert") who shall on an urgent basis
(and if possible prior to the expiry of the Standstill Period) determine the
matters referred to in 5.1.1.1 and 5.1.1.2. The determination of the
Expert shall be made as an expert and not as an arbitrator and shall be final
and binding on the Parties and shall be carried into effect. To the extent that
the Expert is unable to make a determination prior to the expiry of the
Standstill Period then, notwithstanding anything to the contrary contained in
this Agreement, the Closing Date shall be delayed and shall be the first
Business Day after the date on which the Expert has made its determination and
on which the Option Shares can be credited to Sibanye's Securities Account.

 

5.3              
At 12h00 on the Closing Date, representatives of
Sibanye and DRD shall meet at DRD's offices, 2nd Floor, North
Tower, 1 Sixty Building, 160 Jan Smuts Avenue, Rosebank. At that meeting – 

 

5.3.1                    
Sibanye shall deliver to DRD reasonable
evidence in writing of payment by way of electronic funds transfer of the
Option Price for all of the Option Shares into the Nominated Account; 

 

5.3.2                    
DRD shall, to the extent that is has not already
done so, deliver to Sibanye ‐

 

5.3.2.1                           
a copy of a resolution of the board of directors
of DRD approving the allotment and issue of the Option Shares to Sibanye
pursuant to this Agreement and authorising the payment of the relevant listing
fee in respect thereof;

 

5.3.2.2                           
the signed application letter submitted to the
JSE for approval of the listing of the Option Shares on the JSE and the
approval letter stating that the Option Shares will in fact be listed on the
JSE; and

 

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5.3.2.3                           
the irrevocable instruction to the relevant CSDP
to credit the Sibanye Securities Account with the Option Shares.

 

5.4              
In compliance with the Financial Markets Act, the
Option Shares will be issued in dematerialised form to Sibanye, and will be
credited to the Sibanye Securities Account on the Closing Date against payment
by Sibanye for the Option Shares.

 

5.5              
It is recorded that the Parties intend that the matters
referred to in 5.3 and 5.4 above be done and completed simultaneously. The
Parties reciprocally undertake in favour of each other to sign, or cause to be
signed, all such documents, and do, or cause to be done, all such further
things as may be reasonably required to give effect to this Agreement.

 

5.6              
The Parties will be entitled, by agreement in
writing, to waive the requirement for holding a meeting in terms of 5.3
and, in those circumstances, to regulate the process through which the
documents contemplated in 5 will be exchanged, as they deem fit.

 

5.7              
Subject to the Parties entering into good faith
negotiations at the request of Sibanye to agree the terms of a U.S.
registration rights agreement containing standard terms and conditions,
including incidental and demand registration rights with respect to the Option
Shares in favour of Sibanye, the Parties hereby agree that DRD will not be
required to register the Option Shares with the U.S. Securities and
Exchange Commission or list the Option Shares on any securities exchange other
than the JSE.

 

5.8              
Sibanye warrants, represents and undertakes that
for a period of 40 days after the Closing Date, neither it or its
affiliates, will offer or sell any DRD Shares, including any Option
Shares, to a U.S. Person or for the account or benefit of a U.S. Person.

 

6       
WARRANTIES 

 

6.1              
General 

 

DRD gives Sibanye
the Warranties on the basis that -

 

6.1.1                    
this Agreement is entered into by Sibanye
relying on the Warranties, each of which is deemed to be both a material
representation inducing Sibanye to enter into this Agreement and an essential
contractual undertaking by DRD to ensure that the Warranty is true and correct;

 

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6.1.2                    
each Warranty shall be a separate and
independent warranty which, subject to 6.1.3, shall not be limited by
reference to or inference from the terms of any other Warranty or by any other
provision in this Agreement;

 

6.1.3                    
the liability of DRD in connection with the
warranties shall be subject to the limitations contained in 8;

 

6.1.4                    
save as expressly provided in this 6, DRD
gives no warranties or representations of any nature whatever, whether express,
tacit or implied by law.

  

6.2              
Warranties  by  DRD 

 

DRD hereby  gives  to  and  in  fav ☐ ur   ☐ f  Sibanye the  Warranties in this 6.2, as  at  the  Closing Date, – 

 

6.2.1                    
DRD has  sufficient  authorised  but  unissued  DRD Shares  to
give 
effect  to  the  allotment
of the Option Shares in terms of 4; 

 

6.2.2                    
the  Option Shares  will  be  validly  issued  as fully paid up to Sibanye;

 

6.2.3                    
any and all approvals, consents and/or waivers as
may be required in order to issue the Option Shares, and to otherwise give effect
to the allotment and issue thereof will have been received and in place, including
any required approvals of DRD's board, DRD's shareholders and the JSE;

 

6.2.4                    
the  allotment
and issue of the Option Shares  will  be  implemented  in  c ☐ mpliance  with  the
mem ☐ randum   ☐ f  inc ☐ rporati ☐ n   ☐ f  DRD, the  C ☐ mpanies  Act
and the  Listings Requirements;

 

6.2.5                    
the  Option
Shares, when  issued,  shall  be  listed  solely  ☐ n  the  JSE;  and 

 

6.2.6                    
the  Option
Shares, when  issued,  shall  rank  pari  passu  with  all   ☐ ther
Shares  in  issue. 

 

7       
INDEMNITies 

 

7.1              
Without prejudice to any of the rights of
Sibanye at law or in terms of any other provision of this Agreement, DRD
("Indemnity Grantor") indemnifies Sibanye ("Indemnified
 

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Party") against all Losses which the
Indemnified Party may suffer or incur as a result of or in connection with any
breach of any Warranty (collectively, "Indemnified
Loss"). 

  

7.2              
The Indemnified Party shall not admit any
liability in respect of any claim that may give rise to an Indemnified Loss.
The Indemnified Party shall notify the Indemnity Grantor in writing of any such
claim as soon as is reasonably possible after the Indemnified Party becomes
aware of that claim, but in any event within 30 days after the Indemnified
Party becomes aware of that claim, to enable the Indemnity Grantor to contest that
claim.

 

7.3              
The Indemnity Grantor shall, at its own expense
and with the assistance of its own legal advisers, be entitled to contest any
claim referred to in 7.2 in the name of the Indemnified Party until
finally determined by the highest court to which appeal may be made (or which
may review any decision or judgment made or given in relation thereto) or to
settle any such claim and will be entitled to control the proceedings in regard
thereto, provided that ‐

 

7.3.1                    
without prejudice to the Indemnified Party's
rights in terms of 7.1, the Indemnity Grantor shall indemnify the
Indemnified Party against all costs (including legal costs on the scale as
between attorney and own client, any additional legal costs, penalties and
interest) that may be incurred by, awarded against or otherwise become payable
by, the Indemnified Party as a consequence of such steps. The Indemnity Grantor
may, prior to taking such steps, be required by the Indemnified Party to give
reasonable security for the payment of all such costs. If the Parties are
unable to agree upon the nature or amount of such security, same shall be
determined by a third party agreed to in writing by the Parties, or failing
such written agreement, by an attorney of not less than 15 years standing,
appointed by the President for the time being of the Law Society of the
Northern Provinces (or its successor body in Gauteng), whose determination
shall be final and binding;

 

7.3.2                    
the Indemnified Party shall (at the expense of
the Indemnity Grantor and, if the Indemnified Party so requires, with the
involvement of the Indemnified Party's own legal advisers) render to the
Indemnity Grantor such assistance as the Indemnity Grantor may reasonably
require of the Indemnified Party in order to contest that claim;

 

7.3.3                    
the Indemnity Grantor shall regularly, and, in
any event, on demand by the Indemnified Party, inform the Indemnified Party
fully of the status of the contested claim and furnish the Indemnified Party
with all documents and information relating to the contested claim, which may
reasonably be requested by the Indemnified Party; and

 

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7.3.4                    
the Indemnity Grantor shall consult with the
Indemnified Party prior to taking any major steps in relation to or settling
that contested claim and, in particular, before making or agreeing to any
announcement or other publicity in relation to that claim.

 

7.4              
The Indemnity Grantor shall be obliged to pay
the Indemnified Party any amount due to the Indemnified Party in respect of any
Indemnified Loss as soon as the Indemnified Party is obliged to pay the amount
thereof (in any case which involves a payment by the Indemnified Party) or as
soon as the Indemnified Party actually suffers the Indemnified Loss (in any
case which does not involve a payment by the Indemnified Party).

 

8       
LIMITATION OF LIABILITY

 

Notwithstanding anything to the
contrary contained in this Agreement, DRD's liability in terms of or in
connection with this Agreement shall be limited as set out in this 8.

 

8.1              
Amount 

 

Sibanye ("Aggrieved Party")
shall not be entitled to claim any amount which would otherwise be due to it in
terms of or in connection with this Agreement – 

 

8.1.1                    
unless such amount, alone or together with any
other claims for amounts due to the Aggrieved Party in terms of or in
connection with this Agreement, exceeds R50 000 000, in which event
DRD ("Paying Party") shall, subject to 8.2 and 8.3
(inclusive) be obliged to pay the full amount/s claimed by the Aggrieved Party
and not only the excess over the amount of R50 000 000;

 

8.1.2                    
to the extent that such amount, together with
all other amounts payable by the Paying Party to the Aggrieved Party in terms
of or in connection with this Agreement, exceeds R1 300 000 000.

 

8.2              
Time limitations

 

The Paying
Party shall not be liable for any claim referred to in 8.1 or otherwise
("Claim") unless the Aggrieved Party has given written notice
to the Paying Party of the Claim, specifying the factual basis of such Claim in
reasonable detail to the extent then known to the Paying Party, on or before the third anniversary of the Delivery Date. Save as is specifically
provided herein, this 8.2 shall not be construed so as to affect the
application of the law of extinctive prescription to any Claim.

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8.3              
Nature of claims

 

The
Paying Party shall not be liable for ‐

 

8.3.1                    
any Claim for any consequential loss, including loss
of profits, injury to business reputation and/or loss of business
opportunities;

 

8.3.2                    
any Claim by the Aggrieved Party to the extent
that another Claim has been made by the Aggrieved Party arising out of
substantially the same course or set of facts or having the course of action;

 

8.3.3                    
any Indemnified Loss suffered or incurred as a
result of any breach of Warranty if and to the extent that ‐

 

8.3.3.1                           
such breach or Indemnified Loss is caused
by ‐

 

8.3.3.1.1                                 
any matter or thing done, or omitted to be done,
pursuant to and in compliance with this Agreement or otherwise at the request,
or with the approval in writing, of the Aggrieved Party;

 

8.3.3.1.2                                 
any act, omission or transaction of the Aggrieved
Party (or any director, officer, employee or agent or successor‐in‐title
of the Aggrieved Party);

 

8.3.3.1.3                                 
any passing of, or change in, or change of any
generally accepted interpretation or application of, any Applicable Laws
(including any change in any rates of Taxation) which occurs on or after the
Signature Date;

 

8.3.3.1.4                                 
any failure by the Aggrieved Party to use
reasonable endeavours to avoid or mitigate any Indemnified Loss; or

 

8.3.3.2                           
the Aggrieved Party has failed to comply
with 7.2 or 7.3 and that failure has caused, contributed to or
aggravated the Indemnified Loss.

 

If the Aggrieved Party has the right to recover from a third party a sum which indemnifies or
compensates the Paying Party (in whole or in part) in respect of any
Indemnified Loss, then the Aggrieved Party shall notify the Paying Party in writing forthwith of it becoming
aware of such right to enable the Paying Party to take steps 

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to obtain recovery from such third party and the Aggrieved Party
shall take all such steps (including ceding or procuring the cession of such
right) as the Paying Party may reasonably require (at the cost of the Paying Party)
in order to enable the Paying Party to enforce such right.

 

9       
CONFIDENTIALITY 

 

9.1              
Subject to 9.2, no Party shall, at any time
after the Signature Date, directly or indirectly disclose, or directly or
indirectly use, whether for its own benefit or that of any other Person, ‐

 

9.1.1                    
any information ‐

 

9.1.1.1                           
regarding the contents of this Agreement;

 

9.1.1.2                           
relating to the Company, its assets and affairs,
including all communications (whether written, oral or in any other form) and
all reports, statements, schedules and other data concerning any financial,
technical, labour, marketing, administrative, accounting or other matter,

 

(collectively, the "Confidential
Information"); 

 

9.1.2                    
any document or other record (whether in
electronic or any other medium whatsoever) containing Confidential Information
which is supplied to it by the other Party as well as documents, diagrams and
records which are produced by it (whether or not by copying, photocopying or
otherwise reproducing documents or records supplied to it), and containing any
Confidential Information ("Confidential Records"). 

 

9.2              
Notwithstanding 9.1, Confidential Information
may be disclosed by a Party ("Disclosing Party") ‐

 

9.2.1                    
to any expert appointed in terms of this
Agreement;

 

9.2.2                    
to the extent to which the prior written consent
for such disclosure has been obtained from the other Party/ies;

 

9.2.3                    
to the extent to which disclosure is required by
law (excluding contractual obligations) or by the rules of any stock exchange
by which it (or any of its Affiliates) is bound, in 

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which
event the Disclosing Party shall, unless prohibited from doing so by any such
law, obtain the other Party's/Parties' consent, not to be withheld unreasonably,
for the manner of such disclosure; provided that the Disclosing Party shall not
be obliged so to obtain the consent of the other Party/ies if such disclosure
is required before the approval can reasonably be obtained but the Disclosing Party
shall in these circumstances promptly notify the other Party/ies of the full
details of such disclosure, including the reasons why time did not permit such
consent to be obtained;

 

9.2.4                    
and Confidential Records may be disclosed by a
Disclosing Party to the Disclosing Party's directors, responsible employees and
professional advisors who require such disclosure for the purpose of the
Disclosing Party's implementing or enforcing this Agreement or obtaining
professional advice or for the purpose of complying with any law. Any conduct
by any such director, employee or professional advisor which would, if that Person
had been party to this 9, have been a breach of this 9 shall be
deemed to be a breach of this 9 by the Disclosing Party;

 

9.2.5                    
to the extent to which it ‐

 

9.2.5.1                           
is Made Public other than as a result of any
breach of this Agreement or any other agreement. The expression "Made Public"
shall, for this purpose, have the same meaning as when it is used in the
insider trading provisions of the Financial Markets Act, which is not limited
to the circumstances referred to in section 79 of that Act;

 

9.2.5.2                           
corresponds in substance to information
disclosed and/or made available by a third party to the Disclosing Party at any
time without any obligation not to disclose same, unless the Disclosing Party
knows that the third party from whom it received that information is prohibited
from transmitting the information to Disclosing Party by a contractual, legal
or fiduciary obligation to any other party;

 

9.2.5.3                           
is information which was already in the
possession of the Disclosing Party prior to its disclosure by the other Party
to the Disclosing Party or is independently developed by the Disclosing Party
without reference to the Confidential Information.

 

9.3              
No Party shall issue any press release or any
other public document or make any public statement in each case relating to or
connected with or arising out of this Agreement and/or the Composite
Transaction without obtaining the prior approval of the other Party to the 

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contents thereof and the manner of its presentation and
publication; provided that such approval shall not be unreasonably withheld or
delayed; provided further that if a Party is required to make a public
announcement by law or as required by the rules of any stock exchange by which
it is bound, it shall be entitled to do so without the approval of the other
Party if it has given the other Party a reasonable opportunity (in the
circumstances) to comment on such public announcement.

 

10     
BREACH 

  

Should any
Party breach any provision of this Agreement and fail to remedy such breach
within seven days after receiving written notice requiring such remedy, then
(irrespective of the materiality of such breach or provision) the other
Party/ies shall be entitled, without prejudice to its other rights in terms of
this Agreement or in law, including any right to claim damages, to claim
immediate specific performance of all of the defaulting Party's obligations
then due for performance or to cancel this Agreement. Notwithstanding anything to the contrary contained in this
Agreement, no Party shall be entitled to cancel or rescind this Agreement at
any time after the DRD Exchange Agreement may no longer be cancelled by the
parties thereto.

 

11     
DISPUTES 

 

11.1           
Save as expressly otherwise provided for in this
Agreement, any dispute arising out of or in connection with this Agreement,
including any dispute as to its existence, validity, enforceability or
termination, shall be finally resolved in accordance with the rules of the
Arbitration Foundation of Southern Africa (or its successor-in-title) ("AFSA")
by an arbitrator appointed by AFSA. There shall be a right of appeal as
provided for in article 22 of such rules.

 

11.2           
If AFSA no longer exists then the arbitrators
shall be appointed by the President for the time being of the Law Society of
the Northern Provinces and the arbitration shall be conducted in accordance
with the Arbitration Act No 42 of 1965.

 

11.3           
Notwithstanding anything to the contrary
contained in this 11, any Party shall be entitled to obtain interim relief
on an urgent basis from any competent court having jurisdiction.

 

11.4           
For the purposes of 11.3 and for the
purposes of having any award made by the arbitrator being made an order of
court, each of the Parties hereby submits itself to the non‐exclusive
jurisdiction of the High Court of South Africa, Gauteng Local Division,
Johannesburg.

 

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11.5           
This 11 is severable from the rest of this
Agreement and shall remain in full force and effect notwithstanding any termination
or cancellation of this Agreement, or any part thereof.

 

12     
DOMICILIUM AND NOTICES

 

12.1           
The Parties choose domicilium citandi et
executandi ("Domicilium") for all purposes relating to
this Agreement, including the giving of any notice, the payment of any sum, the
serving of any process, as follows ‐

 

12.1.1                  
DRD - 

 

physical   ‐      2nd
Floor, North Tower 

1 Sixty Building 

160 Jan Smuts Avenue

Rosebank

2196

 

e‐mail     ‐      niel.pretorius@drdgold.com;
and

riaan.davel@drdgold.com

 

attention:       The CEO and the CFO

 

12.1.2                  
Sibanye - 

 

physical   ‐      Constantia
Office Park

Bridgeview
House

Ground
Floor

(cnr 14th
Avenue and Hendrik Potgieter Street)

Gauteng

1709

 

e‐mail     ‐      richard.stewart@sibanyestillwater.com

cain.farrel@sibanyestillwater.com

 

attention:       Richard Stewart
(EVP: Business Development)

Cain Farrel (Company Secretary)

 

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12.2           
Any Party shall be entitled from time to time,
by giving written notice to the other, to vary its physical Domicilium 
to any other physical address (not being a post office box or poste restante)
in South Africa and to vary its facsimile and/or email Domicilium  to any
other facsimile number and/or email address.

 

12.3           
Any notice given or payment made by a Party to any
other ("Addressee") which is delivered by hand between the
hours of 09:00 and 17:00 on any Business Day to the Addressee's physical Domicilium 
for the time being shall be deemed to have been received by the Addressee at
the time of delivery.

 

12.4           
Any notice given by a Party to any other which
is successfully transmitted by email or facsimile to the Addressee's email or facsimile
Domicilium  for the time being shall be deemed (unless the contrary is
proved by the Addressee) to have been received by the Addressee at the time of
successful transmission thereof or, if such date is not a Business Day, on the
next day which is a Business Day.

 

12.5           
This 12 shall not operate so as to
invalidate the giving or receipt of any written notice which is actually
received by the Addressee other than by a method referred to in this 12.

 

12.6           
Any notice in terms of or in connection with
this Agreement shall be valid and effective only if in writing and if received
or deemed to be received by the Addressee.

 

13     
GENERAL 

 

13.1           
This Agreement constitutes the sole record of
the agreement between the Parties in relation to the subject matter hereof. No
Party shall be bound by any express, tacit or implied term, representation,
warranty, promise or the like not recorded herein. This Agreement supersedes
and replaces all prior commitments, undertakings or representations, whether
oral or written, between the Parties in respect of the subject matter hereof.

 

13.2           
No addition to, variation, novation or agreed
cancellation of any provision of this Agreement shall be binding upon the
Parties unless reduced to writing and signed by or on behalf of the Parties.

 

13.3           
No waiver, indulgence or extension of time which
a Party ("Grantor") may grant to the other/s, nor any delay or
failure by the Grantor to enforce, whether completely or partially, any of its
rights, shall constitute a waiver of or, whether by estoppel or otherwise,
limit any of the existing or future rights of the Grantor in terms hereof, save
in the event and to the 

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extent that the Grantor has
signed a written document expressly waiving or limiting such right.

 

13.4           
Save as expressly provided in this Agreement, no
Party shall be entitled to cede, delegate, Encumber, assign or otherwise
transfer any of its rights and/or obligations in terms of, and/or interest in,
this Agreement to any third party without the prior written consent of the
other Parties.

 

13.5           
No consent or approval in terms of or in
connection with this Agreement shall be valid or effective unless in writing
and signed by or on behalf of the Party/ies giving such consent or approval.

 

13.6           
For the purposes of this Agreement –

 

13.6.1                  
no data message, as defined in the Electronic
Communications and Transactions Act No 25 of 2002 ("ECTA"),
other than an email or facsimile, shall constitute writing;

 

13.6.2                  
no electronic signature or advanced electronic
signature, as defined in ECTA, shall constitute a signature, except for the
purposes of varying any date referred to in this Agreement or giving any
consent or approval in terms of this Agreement.

 

13.7           
Without prejudice to any other provision of this
Agreement, any successor‐in‐title, including any executor, heir,
liquidator, business rescue practitioner, curator or trustee, of a Party shall
be bound by this Agreement.

 

13.8           
The signature by either Party of a counterpart
of this Agreement shall be as effective as if that Party had signed the same
document as the other Party.

 

13.9           
The Parties warrant to each other that they have
the legal capacity and authority required to conclude and implement this Agreement
and that such conclusion and implementation do not conflict with any obligation
or restriction applicable to either Party, whether in terms of any law, its
constitution or otherwise.

 

14     
GOVERNING LAW

 

This Agreement shall in all respects
(including its existence, validity, interpretation, implementation, termination
and enforcement) be governed by the law of South Africa which is
applicable to agreements executed and wholly performed within South Africa.

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15     
COSTS 

 

Each
Party shall bear and pay its own costs in relation to the negotiation,
drafting, finalisation, signing and implementation of this Agreement.

 

 

	
  Signed at Sandton on 22 November
  2018

  
	
                                                               for

  	
  DRDGOLD Limited

  
	
   

  	
   

   

   

   

  
	
   

  	
  who warrants that he is duly

  authorised hereto

  

 

 

	
  Signed at Sandton on 22 November
  2018

  
	
                                                               for

  	
  Sibanye Gold Limited

  
	
   

  	
   

   

   

   

  
	
   

  	
  who warrants that he is duly

  authorised hereto

  

 

                                                                                                                                              21

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