Document:

Option Cancellation Agreement

 Exhibit 4.25 

 

											
		 		 		 		 		 	 EXECUTION
 3 September 2010

 OPTION CANCELLATION AGREEMENT 

amongst 

ARMGOLD/HARMONY FREEGOLD JOINT VENTURE (PROPRIETARY) LIMITED 

and 

WITWATERSRAND CONSOLIDATED GOLD RESOURCES LIMITED 
 and 
 HARMONY GOLD MINING COMPANY LIMITED 

  
 

 

 TABLE OF CONTENTS 

 

							
	 1
	 	PARTIES	  	 	1	  
	 2
	 	INTERPRETATION	  	 	1	  
	 3
	 	INTRODUCTION	  	 	6	  
	 4
	 	CONDITIONS PRECEDENT	  	 	7	  
	 5
	 	CANCELLATION	  	 	10	  
	 6
	 	DISCHARGE OF THE CONSIDERATION	  	 	10	  
	 7
	 	LOCK-UP	  	 	11	  
	 8
	 	WAIVER	  	 	11	  
	 9
	 	INTEREST	  	 	12	  
	 10
	 	GENERAL WARRANTIES	  	 	12	  
	 11
	 	PUBLICITY	  	 	13	  
	 12
	 	BREACH	  	 	14	  
	 13
	 	DISPUTE RESOLUTION	  	 	14	  
	 14
	 	NOTICES AND DOMICILIA	  	 	16	  
	 15
	 	BENEFIT OF THE AGREEMENT	  	 	17	  
	 16
	 	APPLICABLE LAW AND JURISDICTION	  	 	17	  
	 17
	 	GENERAL	  	 	17	  
	 18
	 	COSTS	  	 	19	  
	 19
	 	SIGNATURE	  	 	19	  

 ANNEXURES 
 ANNEXURE “1” : DIAGRAM DEPICTING THE EXPLORATION ASSETS

 ANNEXURE “2” : REGISTERED DESCRIPTION OF THE EXPLORATION ASSETS 
 ANNEXURE “3” : DIAGRAM DEPICTING THE MILLO AREA 
 ANNEXURE “4” :
REGISTERED DESCRIPTION OF THE MILLO AREA 
 ANNEXURE “5” : DIAGRAM DEPICTING THE TWEEPAN AREA 

ANNEXURE “6” : REGISTERED DESCRIPTION OF THE TWEEPAN AREA 
 ANNEXURE “7” : OPTION AGREEMENT 
 ANNEXURE “8” : WAIVER

  
 

 

	1	PARTIES 

  

	1.1	The Parties to this Agreement are – 

  

	1.1.1	ARMGold/Harmony Freegold Joint Venture Company (Proprietary) Limited; 

  

	1.1.2	Witwatersrand Consolidated Gold Resources Limited; and 

  

	1.1.3	Harmony Gold Mining Company Limited. 

  

	1.2	The Parties agree as set out below. 

  

	2	INTERPRETATION 

  

	2.1	In this Agreement, unless the context indicates a contrary intention, the following words and expressions bear the meanings assigned to them and cognate expressions
bear corresponding meanings – 

  

	2.1.1	“AFSA” means the Arbitration Foundation of Southern Africa; 

 

	2.1.2	“Agreement” means the agreement contained in this document, including all annexures hereto; 

 

	2.1.3	“Companies Act” means the Companies Act, No 61 of 1973; 

  

	2.1.4	“Conditions Precedent” means the conditions precedent set out in clause 4; 

 

	2.1.5	“Consideration” means an amount equal to R275.000.000 (two hundred and seventy five million rand) exclusive of VAT thereon; 

 

	2.1.6	“Consideration Shares” means such number of Wits Gold Shares as may be allotted and issued to Freegold by Wits Gold in terms of the provisions of
clause 6; 

  

	2.1.7	“Dispose” means sell, lease, licence, transfer, loan or otherwise dispose (whether by a voluntary or involuntary single transaction or series of
transactions); 

  

	2.1.8	 “Effective Date” means the 3rd (third) business day after the date on which the last in time of the Conditions Precedent to be fulfilled or waived,
is fulfilled or waived, as the case may be; 

  
 

 

  
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	2.1.9	“Exploration Assets” means the prospecting right held by Wits Gold in and to a certain prospecting area bearing DMR reference number FS 30/5/1/1/2/76
PR, as depicted by the area shaded in yellow on the diagram attached hereto as annexure “1”, the registered description of which is listed in annexure “2”; 

 

	2.1.10	“Freegold” means ARMGold/Harmony Freegold Joint Venture Company (Proprietary) Limited, registration number 2001/029602/07, a limited liability private
company duly incorporated in the Republic of South Africa; 

  

	2.1.11	“Freegold’s Designated Account” means the bank account nominated by Freegold, the details of which are set out below, or such other account as
Freegold may designate in writing on 5 (five) business days notice to Wits Gold – 

  

			
	Name of Account:	  	Harmony Gold Mining Company Current Account
	Bank:	  	Nedbank Limited
	Branch:	  	Corporate Client Services
	Branch Code:	  	145405
	Account Number:	  	454115866

  

	2.1.12	“Freegold Option” means the option granted by Wits Gold to Freegold in terms of clause 9 of the Option Agreement; 

 

	2.1.13	“Harmony” means Harmony Gold Mining Company Limited, registration number 1950/038232/06, a limited liability public company duly incorporated in the
Republic of South Africa; 

  

	2.1.14	“JSE” means JSE Limited, registration number 2005/022939/06, a limited liability public company duly incorporated in the Republic of South Africa and
licensed as an exchange under the Securities Services Act, 2001; 

  

	2.1.15	“Listings Requirements” means the Listings Requirements of the JSE; 

 

	2.1.16	“Lydex” means Lydenburg Exploration Limited, registration number 1998/001853/06, a limited liability public company duly incorporated in the
Republic of South Africa; 

  

	2.1.17	“Merriespruit South Area” means the “Merriespruit South Area” as that term is defined in the Mining Right Abandonment Agreement;

  
 

 

  
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	2.1.18	“Milio Area” means the area shaded in pink on the diagram attached hereto as annexure “3”, the registered description of which is
listed in annexure “4”; 

  

	2.1.19	“Mining Right Abandonment Agreement” means the mining right abandonment agreement entered into, or to be entered into, between Harmony and Wits Gold,
in terms of which Harmony abandons that portion of its mining right pertaining to the Merriespruit South Area; 

  

	2.1.20	“Option Agreement” means the memorandum of agreement entered into between Wits Gold and Freegold on 29 April 2004, in terms of which, inter
alia, Wits Gold granted the Freegold Option to Freegold, a copy of which agreement is attached hereto as annexure “7”; 

  

	2.1.21	“Participation Rights” means all forms of economic and financial participation in the form of participation rights, subscription rights, net vendor
consideration rights or royalty rights in or to the Exploration Assets, the Merriespruit South Area, the Tweepan Area and/or the Millo Area; 

  

	2.1.22	“Parties” means the parties to this Agreement; 

  

	2.1.23	“Prime Rate” means the publicly quoted basic rate of interest, compounded monthly in arrears and calculated on a 365 (three hundred and sixty five) day
year irrespective of whether or not the year is a leap year, from time to time published by Nedbank Limited as being its prime overdraft rate, as certified by any representative of that bank whose appointment and designation it shall not be
necessary to prove; 

  

	2.1.24	“Signature Date” means the date of signature of this Agreement by the Party last in time signing; 

 

	2.1.25	“Tweepan Area” means the area shaded in blue, on the diagram attached hereto as annexure “5”, the registered description of which is
listed in annexure “6”; 

  

	2.1.26	“VAT” means value-added tax as levied from time to time in terms of the Value-Added Tax Act, 1991; 

 

	2.1.27	“VWAP” means R62.84 (sixty two rand and eighty four cents) per Wits Gold Share; 

  
 

 

  
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	2.1.28	“Wits Gold” means Witwatersrand Consolidated Gold Resources Limited, registration number 2002/031365/06, a limited liability public company duly
incorporated in the Republic of South Africa (formerly Witwatersrand Consolidated Gold Resources (Proprietary) Limited); and 

  

	2.1.29	“Wits Gold Shares” means ordinary shares in the share capital of Wits Gold with a par value of R0.01 (one cent) each. 

 

	2.2	In this Agreement – 

  

	2.2.1	clause headings and the heading of the Agreement are for convenience only and are not to be used in its interpretation; 

 

	2.2.2	an expression which denotes – 

  

	2.2.2.1	any gender includes the other genders; 

  

	2.2.2.2	a natural person includes a juristic person and vice versa; 

  

	2.2.2.3	the singular includes the plural and vice versa; and 

  

	2.2.2.4	a Party includes a reference to that Party’s successors in title and assigns allowed at law. 

 

	2.3	Any reference in this Agreement to – 

  

	2.3.1	“business hours” shall be construed as being the hours between 08h30 and 17h00 on any business day. Any reference to time shall be based upon South
African Standard Time; 

  

	2.3.2	“days” shall be construed as calendar days unless qualified by the word “business”, in which instance a “business day” will be any
day other than a Saturday, Sunday or public holiday as gazetted by the government of the Republic of South Africa from time to time; 

  

	2.3.3	“law” means any law of general application and includes the common law and any statute, constitution, decree, treaty, regulation, directive, ordinance,
by- law, order or any other enactment of legislative measure of government (including local and provincial government) statutory or regulatory body which has the force of law; 

  
 

 

  
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	2.3.4	“person” means any person, company, close corporation, trust, partnership or other entity whether or not having separate legal personality; and

  

	2.3.5	“writing” means legible writing and in English. 

  

	2.4	The words “include” and “including” mean “include without limitation” and “including without limitation”. The use
of the words “include” and “including” followed by a specific example or examples shall not be construed as limiting the meaning of the general wording preceding it. 

 

	2.5	Any substantive provision, conferring rights or imposing obligations on a Party and appearing in any of the definitions in this clause 2 or elsewhere in this Agreement,
shall be given effect to as if it were a substantive provision in the body of the Agreement. 

  

	2.6	Words and expressions defined in any clause shall, unless the application of any such word or expression is specifically limited to that clause, bear the meaning
assigned to such word or expression throughout this Agreement. 

  

	2.7	Unless otherwise provided, defined terms appearing in this Agreement in title case shall be given their meaning as defined, while the same terms appearing in lower case
shall be interpreted in accordance with their plain English meaning. 

  

	2.8	A reference to any statutory enactment shall be construed as a reference to that enactment as at the Signature Date and as amended or substituted from time to time.

  

	2.9	Unless specifically otherwise provided, any number of days prescribed shall be determined by excluding the first and including the last day or, where the last day falls
on a day that is not a business day, the next succeeding business day. 

  

	2.10	If the due date for performance of any obligation in terms of this Agreement is a day which is not a business day then (unless otherwise stipulated) the due date for
performance of the relevant obligation shall be the immediately preceding business day. 

  

	2.11	Where figures are referred to in numerals and in words, and there is any conflict between the two, the words shall prevail, unless the context indicates a contrary
intention. 

  
 

 

  
 5 

	2.12	The rule of construction that this Agreement shall be interpreted against the Party responsible for the drafting of this Agreement, shall not apply.

  

	2.13	No provision of this Agreement shall (unless otherwise stipulated) constitute a stipulation for the benefit of any person (stipulatio alteri) who is not a Party
to this Agreement. 

  

	2.14	The use of any expression in this Agreement covering a process available under South African law, such as winding-up, shall, if either of the Parties to this Agreement
is subject to the law of any other jurisdiction, be construed as including any equivalent or analogous proceedings under the law of such other jurisdiction. 

 

	2.15	Any reference in this Agreement to “this Agreement” or any other agreement or document shall be construed as a reference to this Agreement or, as the
case may be, such other agreement or document, as amended, varied, novated or supplemented from time to time. 

  

	2.16	In this Agreement the words “clause” or “clauses” and “annexure” or “annexures” refer to clauses of
and annexures to this Agreement. 

  

	3	INTRODUCTION 

  

	3.1	Freegold was granted the Freegold Option by Wits Gold in terms of the provisions of the Option Agreement. 

 

	3.2	In terms of the Option Agreement, Wits Gold was to conduct at its sole cost, an appropriate exploration programme over the Properties (as that term is defined in the
Option Agreement) with the intention of establishing a mine or mines on such Properties (“Mine(s)”). 

  

	3.3	The Freegold Option entitled Freegold, or its nominee, to acquire a beneficial interest of up to 40% (forty percent) in the Mine(s). 

 

	3.4	Upon the exercise of the Freegold Option, Freegold and Wits Gold would have been deemed to have concluded a joint venture in respect of the Mine(s) (“Joint
Venture”), on the basis that, inter alia: 

  

	3.4.1	 Freegold would reimburse Wits Gold in cash for 40% (forty percent) of the actual cost of the exploration programme and feasibility study plus VAT

  
 

 

  
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thereon, incurred by Wits Gold, in consideration for Freegold’s 40% (forty percent) interest in the Joint Venture; and 

 

	3.4.2	all costs and profits related to the Joint Venture would be shared by Freegold and Wits Gold in proportion to their respective interests in the Joint Venture from time
to time. 

  

	3.5	Wits Gold wishes to be able, on establishment of the Mine(s), to conduct mining operations on a basis other than in joint venture with Freegold as contemplated in the
Option Agreement which would not be possible if Freegold exercised the Freegold Option. 

  

	3.6	The Parties have agreed to the cancellation of the Freegold Option, with effect from the Effective Date, on the terms and subject to the conditions herein contained.

  

	3.7	The Parties wish to record in writing their agreement in respect of the above and matters ancillary thereto. 

 

	4	CONDITIONS PRECEDENT 

  

	4.1	Save for clauses 1 to 4, and clauses 10 to 19 all of which will become effective immediately, this Agreement is subject to the fulfilment of the Conditions Precedent
that – 

  

	4.1.1	the Mining Right Abandonment Agreement shall have been entered into contemporaneously with this Agreement; 

 

	4.1.2	by not later than 17h00 on 13 September 2010, Wits Gold shall have received a certified copy of resolutions of the board of directors of Freegold –

  

	4.1.2.1	approving and, where applicable, ratifying the entering into of this Agreement; 

 

	4.1.2.2	authorising a specified person or persons to execute this Agreement and, where applicable, ratifying the execution of this Agreement by such specified person or
persons; and 

  

	4.1.2.3	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection
with this Agreement; 

  
 

 

  
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	4.1.3	by not later than 17h00 on 13 September 2010, Freegold shall have received a certified copy of resolutions of the board of directors of Wits Gold –

  

	4.1.3.1	approving and, where applicable, ratifying the entering into of this Agreement; 

 

	4.1.3.2	allotting and issuing the Consideration Shares to Freegold on the Effective Date, conditional on the fulfilment of the Condition Precedent contained in clause 4.1.5 and
on Wits Gold electing to discharge the Consideration, wholly or in part, by the allotment and issue of the Consideration Shares; 

  

	4.1.3.3	authorising a specified person or persons to execute this Agreement and, where applicable, ratifying the execution of this Agreement by such specified person or
persons; and 

  

	4.1.3.4	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices to be signed and/or despatched by it under or in connection
with this Agreement, including the allotment and issue, if so decided by Wits Gold, of the Consideration Shares to Freegold; 

  

	4.1.4	by not later than 17h00 on 13 September 2010, Harmony and Lydex shall have waived any Participation Rights which they have by signing a waiver substantially
similar to the waiver attached hereto as annexure “8”; and 

  

	4.1.5	by not later than 17h00 on 5 November 2010, the shareholders of Wits Gold have passed resolutions in general meeting in accordance with the provisions of the
Companies Act and the Listings Requirements – 

  

	4.1.5.1	placing at least 4,376,194 (four million three hundred and seventy six thousand and one hundred and ninety four) Wits Gold Shares under the control of the directors of
Wits Gold; and 

  

	4.1.5.2	authorising the directors of Wits Gold to allot and issue a maximum of 4,376,194 (four million three hundred and seventy six thousand one hundred and ninety four) Wits
Gold Shares – 

  

	4.1.5.2.1	to Freegold in accordance with the provisions of this Agreement, as a specific approval in terms of section 221 of the Companies Act; or 

 

	4.1.5.2.2	pursuant to a rights offer or a vendor consideration placing in terms of the Listings Requirements; and 

  
 

 

  
 8 

	4.1.6	by not later than 17h00 on 5 November 2010, the Toronto Stock Exchange has, to the extent required in terms of the rules of the Toronto Stock Exchange, approved
the allotment and issue of the Consideration Shares. 

  

	4.2	Freegold shall use commercially reasonable endeavours to procure the fulfilment of the Condition Precedent contained in clause 4.1.2, as soon as reasonably possible and
in any event prior to the expiry of the relevant time period set out in that clause and furnish to Wits Gold documents evidencing the fulfilment of such Condition Precedent. 

 

	4.3	Harmony shall use commercially reasonable endeavours to procure the fulfilment of the Condition Precedent contained in clause 4.1.4 as soon as reasonably possible and
in any event prior to the expiry of the relevant time period set out in that clause and furnish to Wits Gold documents evidencing the fulfilment of such Condition Precedent; 

 

	4.4	Wits Gold shall use commercially reasonable endeavours to procure the fulfilment of the Conditions Precedent contained in clauses 4.1.3, 4.1.5 and 4.1.6 as soon as
reasonably possible and in any event prior to the expiry of the relevant time periods set out in those clauses and furnish to Freegold documents evidencing the fulfilment of such Conditions Precedent. 

 

	4.5	All Parties shall use commercially reasonable endeavours and the Parties will co- operate in good faith to procure the fulfilment of the Condition Precedent contained
in clause 4.1.1 on the Signature Date. 

  

	4.6	The Conditions Precedent set out in – 

  

	4.6.1	clauses 4.1.2, 4.1.4 and 4.1.6 have been inserted for the benefit of Wits Gold which will be entitled to waive fulfilment of any of the said Conditions Precedent, in
whole or in part, on written notice to Freegold prior to the expiry of the relevant time periods set out in those clauses; 

  

	4.6.2	clause 4.1.3 has been inserted for the benefit of Freegold which will be entitled to waive fulfilment of such Condition Precedent, in whole or in part, on written
notice to Wits Gold prior to the expiry of the relevant time period set out in that clause; and 

  

	4.6.3	 clauses 4.1.1 and 4.1.5 have been inserted for the benefit of the Parties who will be entitled to waive fulfilment of any of the said Conditions
Precedent, in 

  
 

 

  
 9 

	 	
whole or in part, by written agreement prior to the expiry of the relevant time period set out in those clauses. 

 

	4.7	Unless all the Conditions Precedent have been fulfilled or waived by not later than the relevant dates for fulfilment thereof set out in clause 4.1 (or such later date
or dates as may be agreed in writing amongst the Parties) the provisions of this Agreement, save for clauses 1 to 4, and clauses 10 to 19, which will remain of full force and effect, will never become of any force or effect and the status quo
ante will be restored as near as may be and neither of the Parties will have any claim against the other in terms hereof or arising from the failure of the Conditions Precedent, save for any claims arising from a breach of clause 4.2, or clause
4.4 and/or clause 4.5. 

  

	5	CANCELLATION 

 For the
reasons set out in clauses 3.2 to 3.6, the Parties hereby agree to the cancellation of the Freegold Option, with effect from the Effective Date, against discharge of the Consideration and the payment of VAT by Wits Gold in accordance with the
provisions of clause 6. 
  

	6	DISCHARGE OF THE CONSIDERATION 

  

	6.1	The Consideration shall be discharged by Wits Gold on the Effective Date at Wits Gold’s election by – 

 

	6.1.1	payment to Freegold of an amount in cash equal to the Consideration; or 

  

	6.1.2	way of the allotment and issue to Freegold by Wits Gold of 4,376,194 (four million three hundred and seventy six thousand and one hundred and ninety four) Wits Gold
Shares, and the delivery to Freegold of a share certificate in respect thereof; or 

  

	6.1.3	payment to Freegold of an amount equal to such amount in cash as may be determined by Wits Gold (“Cash Amount”) and by way of the allotment and issue
to Freegold by Wits Gold of such number of Wits Gold Shares as is determined by dividing the sum of R275.000.000 (two hundred and seventy five million rand) less the Cash Amount, by the VWAP and the delivery to Freegold of a share certificate in
respect thereof. 

  

	6.2	 Wits Gold shall at the same time as the Consideration is discharged in accordance with the provisions of clause 6.1, pay to Freegold an amount equal to

  
 

 

  
 10 

	 	
the VAT payable on the Consideration against presentation by Freegold to Wits Gold of a VAT invoice in respect thereof. 

 

	6.3	Wits Gold undertakes to update the share register of Wits Gold to reflect Freegold as the registered holder of the Consideration Shares within 24 (twenty four) hours
from the Effective Date. 

  

	6.4	All cash payments to be made in terms of this Agreement will be made by electronic transfer of immediately available and freely transferable funds to Freegold’s
Designated Account, free of any deductions or set-off whatsoever, in the currency of the Republic of South Africa. 

  

	7	LOCK-UP 

  

	7.1	In the event that any portion of the Consideration is settled by the allotment and issue of Wits Gold Shares to Freegold, Freegold shall not be entitled to Dispose of
all or any of the Consideration Shares – 

  

	7.1.1	for a period of 180 (one hundred and eighty) days after the Effective Date (“Lock-Up Period”), without the prior written consent of Wits Gold; and

  

	7.1.2	until the first anniversary of the expiration of the Lock-Up Period, without having first consulted with Wits Gold in regard to such intended Disposal at least 15
(fifteen) business days prior to Disposing of the said Consideration Shares. For the avoidance of doubt, it is agreed that Freegold shall have complied with its obligations to consult with Wits Gold in terms of this clause 7.1.2 if it has informed
Wits Gold of its intention to Dispose of the said Consideration Shares within the prescribed period and has considered any alternative proposals which may be made by Wits Gold. 

 

	7.2	Freegold shall not be entitled to pledge and cede the Consideration Shares to a third party as security during the Lock-Up Period, without the prior written consent of
Wits Gold. 

  

	8	WAIVER 

  

	8.1	Harmony hereby warrants to and in favour of Wits Gold that, as at the Signature Date, none of its subsidiaries, other than Lydex, holds any Participation Rights.

  

	8.2	 If it transpires at any time after the Signature Date that any subsidiary of Harmony does in fact hold any Participation Rights, Harmony hereby
undertakes 

  
 

 

  
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to procure, to the extent that it is within its power, that such subsidiary waives all such Participation Rights by signing a waiver substantially similar to the waiver attached hereto as
annexure “8”. 

  

	9	INTEREST 

 Should any
payment under or arising from this Agreement fail to be made on the due date thereof then, without prejudice to such other rights as may accrue to the payee consequent upon such failure, such overdue amounts will bear interest at the Prime Rate plus
300 (three hundred) basis points, from the due date for payment to the date of actual payment, both dates inclusive. 
  

	10	GENERAL WARRANTIES 

  

	10.1	Each of the Parties hereby warrants to and in favour of the other that – 

 

	10.1.1	it has the legal capacity and has taken all necessary corporate action required to empower and authorise it to enter into this Agreement; 

 

	10.1.2	this Agreement constitutes an agreement valid and binding on it and enforceable against it in accordance with its terms; 

 

	10.1.3	the execution of this Agreement and the performance of its obligations hereunder does not and shall not – 

 

	10.1.3.1	contravene any law or regulation to which that Party is subject; 

  

	10.1.3.2	contravene any provision of that Party’s constitutional documents; or 

 

	10.1.3.3	conflict with, or constitute a breach of any of the provisions of any other agreement, obligation, restriction or undertaking which is binding on it; and

  

	10.1.4	to the best of its knowledge and belief, it is not aware of the existence of any fact or circumstance that may impair its ability to comply with all of its obligations
in terms of this Agreement; 

  

	10.1.5	it is entering into this Agreement as principal (and not as agent or in any other capacity); 

 

	10.1.6	the natural person who signs and executes this Agreement on its behalf is validly and duly authorised to do so; 

  
 

 

  
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	10.1.7	no other party is acting as a fiduciary for it; and 

  

	10.1.8	it is not relying upon any statement or representation by or on behalf of any other Party, except those expressly set forth in this Agreement. 

 

	10.2	Each of the representations and warranties given by the Parties in terms of clause 10.1 shall – 

 

	10.2.1	be a separate warranty and will in no way be limited or restricted by inference from the terms of any other warranty or by any other words in this Agreement;

  

	10.2.2	continue and remain in force notwithstanding the completion of any or all the transactions contemplated in this Agreement; and 

 

	10.2.3	prima facie be deemed to be material and to be a material representation inducing the other Parties to enter into this Agreement. 

 

	11	PUBLICITY 

  

	11.1	Subject to clause 11.3, each Party undertakes to keep confidential and not to disclose to any third party, save as may be required in law (including by the rules of any
recognised securities exchange, where applicable) or permitted in terms of this Agreement, the nature, content or existence of this Agreement and any and all information given by a Party to the other Parties pursuant to this Agreement.

  

	11.2	No announcements of any nature whatsoever will be made by or on behalf of a Party relating to this Agreement without the prior written consent of the other Parties,
which consent shall not be unreasonably withheld or delayed, save for any announcement or other statement required to be made in terms of the provisions of any law or by the rules of any recognised securities exchange, in which event the Party
obliged to make such statement will first consult with the other Parties in order to enable the Parties in good faith to attempt to agree the content of such announcement, which (unless agreed) must go no further than is required in terms of such
law or rules. This will not apply to a Party wishing to respond to the other Party which has made an announcement of some nature in breach of this clause 11. 

 

	11.3	 This clause 11 shall not apply to any disclosure made by a Party to its officers, employees, agents, professional advisors or consultants, provided
that they have agreed to the same confidentiality undertakings, or to any judicial, regulatory or 

  
 

 

  
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arbitral tribunal or officer, in connection with any matter relating to this Agreement or arising out of it. 

 

	12	BREACH 

  

	12.1	If a Party (“Defaulting Party”) commits any breach of this Agreement and fails to remedy such breach within 5 (five) business days (“Notice
Period”) of written notice requiring the breach to be remedied, then the Party giving the notice (“Aggrieved Party”) will be entitled, at its option – 

 

	12.1.1	to claim immediate specific performance of any of the Defaulting Party’s obligations under this Agreement, with or without claiming damages, whether or not such
obligation has fallen due for performance; or 

  

	12.1.2	subject to clause 12.2, to cancel this Agreement, with or without claiming damages, in which case written notice of the cancellation shall be given to the Defaulting
Party, and the cancellation shall take effect on the giving of the notice. 

  

	12.2	No Party shall be entitled to cancel this Agreement unless the breach is a material breach. A breach will be deemed to be a material breach if –

  

	12.2.1	it is capable of being remedied, but is not so remedied within the Notice Period; 

 

	12.2.2	it is incapable of being remedied or is not remedied within the Notice Period, and payment in money will compensate for such breach but such payment is not made within
the Notice Period. 

  

	12.3	The Parties agree that any costs awarded will be recoverable on an attorney-and- own-client scale unless the Court specifically determines that such scale shall not
apply, in which event the costs will be recoverable in accordance with the High Court tariff, determined on an attorney-and-client scale. 

  

	12.4	The Aggrieved Party’s remedies in terms of this clause 12 are without prejudice to any other remedies to which the Aggrieved Party may be entitled in law.

  

	13	DISPUTE RESOLUTION 

  

	13.1	 In the event of there being any dispute or difference amongst the Parties arising out of this Agreement, the said dispute or difference shall on
written demand by 

  
 

 

  
 14 

	 	
any party to the dispute be submitted to arbitration in Johannesburg in accordance with the AFSA rules, which arbitration shall be administered by AFSA. 

 

	13.2	Should AFSA, as an institution, not be operating at that time or not be accepting requests for arbitration for any reason, then the arbitration shall be conducted in
accordance with the AFSA rules for commercial arbitration (as last applied by AFSA) before an arbitrator appointed by agreement between the parties to the dispute or failing agreement within 10 (ten) business days of the demand for arbitration, then
any party to the dispute shall be entitled to forthwith call upon the chairperson of the Johannesburg Bar Council to nominate the arbitrator, provided that the person so nominated shall be an advocate of not less than 15 (fifteen) years standing as
such. The person so nominated shall be the duly appointed arbitrator in respect of the dispute. In the event of the attorneys of the parties to the dispute failing to agree on any matter relating to the administration of the arbitration, such matter
shall be referred to and decided by the arbitrator whose decision shall be final and binding on the Parties. 

  

	13.3	Any party to the arbitration may appeal the decision of the arbitrator or arbitrators in terms of the AFSA rules for commercial arbitration. 

 

	13.4	Nothing herein contained shall be deemed to prevent or prohibit a Party from applying to the appropriate court for urgent relief or for judgment in relation to a
liquidated claim. 

  

	13.5	Any arbitration in terms of this clause 13 (including any appeal proceedings) shall be conducted in camera and the Parties shall treat as confidential details of
the dispute submitted to arbitration, the conduct of the arbitration proceedings and the outcome of the arbitration. 

  

	13.6	This clause 13 will continue to be binding on the Parties notwithstanding any termination or cancellation of the Agreement. 

 

	13.7	The Parties agree that the written demand by a Party in terms of clause 13.1 that the dispute or difference be submitted to arbitration, is to be deemed to be a legal
process for the purpose of interrupting extinctive prescription in terms of the Prescription Act, 1969. 

  
 

 

  
 15 

	14	NOTICES AND DOMICILIA 

  

	14.1	The Parties select as their respective domicilia citandi et executandi the following physical addresses, and for the purposes of giving or sending any notice
provided for or required under this Agreement, the said physical addresses as well as the following telefax numbers – 

  

					
	 Name
	 	 Physical Address
	 	 Telefax

	Freegold & Harmony	 	Block 27	 	(011) 834 1708
		 	Randfontein Office Park	 	
		 	Cnr Main Reef Road and	 	
		 	Ward Avenue	 	
		 	Randfontein	 	

 Marked for the attention of: The Company Secretary

  

					
	 Name
	 	 Physical Address
	 	 Telefax

	Wits Gold	 	12th Floor	 	(011) 838 3208
		 	70 Fox Street	 	
		 	Johannesburg	 	

 Marked for the attention of: The Company Secretary 

provided that a Party may change its domicilium or its address for the purposes of notices to any other physical address or telefax
number by written notice to the other Parties to that effect. Such change of address will be effective 5 (five) business days after receipt of the notice of the change. 
  

	14.2	All notices to be given in terms of this Agreement will be given in writing and will – 

 

	14.2.1	be delivered by hand or sent by telefax; 

  

	14.2.2	if delivered by hand during business hours, be presumed to have been received on the date of delivery. Any notice delivered after business hours or on a day which is
not a business day will be presumed to have been received on the following business day; and 

  

	14.2.3	if sent by telefax during business hours, be presumed to have been received on the date of successful transmission of the telefax. Any telefax sent after business hours
or on a day which is not a business day will be presumed to have been received on the following business day. 

  

	14.3	 Notwithstanding the above, any notice given in writing, and actually received by the Party to whom the notice is addressed, will be deemed to have been
properly 

  
 

 

  
 16 

	 	
given and received, notwithstanding that such notice has not been given in accordance with this clause 14. 

 

	15	BENEFIT OF THE AGREEMENT 

This Agreement will also be for the benefit of and be binding upon the successors in title and permitted assigns of the Parties or any of
them. 
  

	16	APPLICABLE LAW AND JURISDICTION 

  

	16.1	This Agreement will in all respects be governed by and construed under the laws of the Republic of South Africa. 

 

	16.2	For the purpose of clause 13.4 or for the purpose of making the arbitration award an order of court, the Parties hereby consent and submit to the non-exclusive
jurisdiction of the South Gauteng High Court, Johannesburg in any dispute arising from or in connection with this Agreement. The Parties agree that any costs awarded will be recoverable on an attorney-and-own-client scale unless the Court
specifically determines that such scale shall not apply, in which event the costs will be recoverable in accordance with the High Court tariff, determined on an attorney-and-client scale. 

 

	17	GENERAL 

  

	17.1	Whole Agreement 

  

	17.1.1	This Agreement constitutes the whole of the agreement amongst the Parties relating to the matters dealt with herein and, save to the extent otherwise provided herein,
no undertaking, representation, term or condition relating to the subject matter of this Agreement not incorporated in this Agreement shall be binding on any of the Parties. 

 

	17.1.2	This Agreement supersedes and replaces any and all agreements amongst the Parties (and other persons, as may be applicable) and undertakings given to or on behalf of
the Parties (and other persons, as may be applicable) in relation to the subject matter hereof. 

  
 

 

  
 17 

	17.2	Variations to be in Writing 

 No addition to or variation, deletion, or agreed cancellation of all or any clauses or provisions of this Agreement will be of any force or effect unless in writing and signed by the Parties. 

 

	17.3	No indulgences 

 No
latitude, extension of time or other indulgence which may be given or allowed by any Party to the other Parties in respect of the performance of any obligation hereunder, and no delay or forbearance in the enforcement of any right of any Party
arising from this Agreement and no single or partial exercise of any right by any Party under this Agreement, shall in any circumstances be construed to be an implied consent or election by such Party or operate as a waiver or a novation of or
otherwise affect any of the Party’s rights in terms of or arising from this Agreement or estop or preclude any such Party from enforcing at any time and without notice, strict and punctual compliance with each and every provision or term
hereof. Failure or delay on the part of any Party in exercising any right, power or privilege under this Agreement will not constitute or be deemed to be a waiver thereof, nor will any single or partial exercise of any right, power or privilege
preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
  

	17.4	No Waiver or Suspension of Rights 

 No waiver, suspension or postponement by any Party of any right arising out of or in connection with this Agreement shall be of any force or effect unless in writing and signed by such Party. Any such
waiver, suspension or postponement will be effective only in the specific instance and for the purpose given. 
  

	17.5	Provisions Severable 

 All
provisions and the various clauses of this Agreement are, notwithstanding the manner in which they have been grouped together or linked grammatically, severable from each other. Any provision or clause of this Agreement which is or becomes
unenforceable in any jurisdiction, whether due to voidness, invalidity, illegality, unlawfulness or for any other reason whatever, shall, in such jurisdiction only and only to the extent that it is so unenforceable, be treated as pro non
scripto and the remaining provisions and clauses of this Agreement shall remain of full force and effect. The Parties declare that it is their intention that this 

  
 

 

  
 18 

 
Agreement would be executed without such unenforceable provision if they were aware of such unenforceability at the time of execution hereof. 

 

	17.6	Continuing Effectiveness of Certain Provisions 

 The expiration or termination of this Agreement shall not affect such of the provisions of this Agreement as expressly provide that they will operate after any such expiration or termination or which of
necessity must continue to have effect after such expiration or termination, notwithstanding that the clauses themselves do not expressly provide for this. 
  

	17.7	No Assignment 

 Neither
this Agreement nor any part, share or interest herein nor any rights or obligations hereunder may be ceded, delegated or assigned by any Party without the prior written consent of the other Parties, save as otherwise provided herein. 

 

	18	COSTS 

 Each Party will
bear and pay its own legal costs and expenses of and incidental to the negotiation, drafting, preparation and implementation of this Agreement. 
  

	19	SIGNATURE 

  

	19.1	This Agreement is signed by the Parties on the dates and at the places indicated below. 

 

	19.2	This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same Agreement as at
the date of signature of the Party last in time signing one of the counterparts. 

  

	19.3	The persons signing this Agreement in a representative capacity warrant their authority to do so. 

 

	19.4	The Parties record that it is not required for this Agreement to be valid and enforceable that a Party shall initial the pages of this Agreement and/or have its
signature of this Agreement verified by a witness. 

  
 

 

  
 19 

 SIGNED at Sandton on 3 September 2010 

 

	
	For and on behalf of
	ARMGOLD/HARMONY FREEGOLD JOINT VENTURECOMPANY (PROPRIETARY) LIMITED
	
	 

	Signature
	 A.J. Boshoff

	Name of Signatory
	 Executive.

	Designation of Signatory

 SIGNED at SANDTON on 3 SEPTEMBER 2010 

 

	
	For and on behalf of
	WITWATERSRAND CONSOLIDATED GOLD RESOURCES LIMITED
	
	 

	Signature
	 D M URQUHART

	Name of Signatory
	 CFO.

	Designation of Signatory

  
 

 

  
 20 

 SIGNED at Sandton on 3 September 2010 

 

	
	For and on behalf of
	HARMONY GOLD MINING COMPANY LIMITED
	
	 

	Signature
	 A.J. Boshoff

	Name of Signatory
	 Executive.

	Designation of Signatory

  
 

 

  
 21 

 ANNEXURE “1” 

DIAGRAM DEPICTING THE EXPLORATION ASSETS 

  
 

 

 

 

 ANNEXURE “2” 

REGISTERED DESCRIPTION OF THE EXPLORATION ASSETS 
  

															
	Farm Name	  	District	  	Portion	  	Area (Ha)	 	  	Area (Ha)	 	  	Title Deed
						
	 	  	 	  	 	  	as per RM	 	  	Title Deed	 	  	 
	 BLOCK A
	  		  		  				  				  	
	Hakkies 695	  	Ventersburg	  	9(2)	  	 	295.5035	  	  	 	295.5035	  	  	T2058/1968
	Hakkies 695	  	Ventersburg	  	RE(2)(Kondowa)	  	 	220.2762	  	  	 	220.2762	  	  	T3378/2002
	Hakkies 742	  	Ventersburg	  	RE(716.2973)	  	 	554.8853	  	  	 	716.2973	  	  	T12805/1999
	Hakkies 742	  	Ventersburg	  	1(189.9755)	  	  	 	189.9755	  	  	T27714/2002
	Hakkies 695	  	Ventersburg	  	6(5)	  	 	44.6110	  	  	 	44.6110	  	  	T22212/2002
	Hakkies 695	  	Ventersburg	  	7(5)	  	 	44.6110	  	  	 	44.6110	  	  	T22212/2002
	Hakkies 695	  	Ventersburg	  	RE3 (Engela)	  	 	267.6662	  	  	 	267.6663	  	  	T22212/2002
	Hakkies 695	  	Ventersburg	  	RE5(3)	  	 	133.8332	  	  	 	133.8332	  	  	T22213/2002
	Hakkies 695	  	Ventersburg	  	8(5)	  	 	44.6110	  	  	 	44.6110	  	  	T22213/2002
	BLOCK B	  		  		  				  				  	
	Bloemhoek 509	  	Theunissen	  	1(Elim)	  	 	201.2850	  	  	 	190.5657	  	  	T5581/1997
	Bloemhoek 509	  	Theunissen	  	RE	  	 	886.3079	  	  	 	885.2204	  	  	T3377/2002
	Bloemhoek 509	  	Theunissen	  	RE(2)(Nelspark)	  	 	187.3068	  	  	 	187.3068	  	  	T5581/1997
	Weltevreden 443	  	Theunissen	  	RE(623.7697)	  	 	1112.6303	  	  	 	623.7697	  	  	T14323/1997
	Weltevreden 443	  	Theunissen	  	1(665.1082)	  	  	 	665.1082	  	  	T13510/1994
	Pedamar 402	  	Theunissen	  	Farm	  	 	85.6532	  	  	 	85.6532	  	  	T10501/2003
	Welgelegen 382	  	Theunissen	  	RE(2)(De Rust)	  	 	245.7008	  	  	 	245.7008	  	  	T1072/1986
	Welgelegen 382	  	Theunissen	  	4(Bloekom)	  	 	491.4015	  	  	 	491.4015	  	  	T14610/1993
	Welgelegen 382	  	Theunissen	  	RE(5)(Spoordraai)	  	 	122.8390	  	  	 	122.8390	  	  	T1017/1995
						
	Welgelegen 382	  	Theunissen	  	RE(6)Euodia	  	 	327.6009	  	  	 	325.6503	  	  	T3377/2002
	Welgelegen 382	  	Theunissen	  	7(6)(Moedersgitt) [now Ptn 24]	  	 	163.8005	  	  	 	242.3735	  	  	T5581/1997
	Welgelegen 382	  	Theunissen	  	RE10(5)	  	 	122.8350	  	  	 	117.9878	  	  	T27373/2002
	Welgelegen 382	  	Theunissen	  	11(5)	  	 	122.8350	  	  	 	121.3083	  	  	T27373/2002
	Welgelegen 382	  	Theunissen	  	12(5-Optavit)	  	 	122.8350	  	  	 	122.8350	  	  	T13456/1990
	Welgelegen 382	  	Theunissen	  	19(2)(now on 25)	  	 	85.6537	  	  	 	405.7477	  	  	T28639/1999
	BLOCK C	  		  		  				  				  	
	Kriegerskraal 708	  	Ventersburg	  	RE	  	 	707.9175	  	  	 	707.9175	  	  	T23906/1998
						
	Kriegerskraal 708	  	Ventersburg	  	1	  	 	707.9175	  	  	 	707.9175	  	  	T23906/1998
	Palmietfontein 229	  	Winburg	  	Farm (now RE)	  	 	1761.4393	  	  	 	1761.4393	  	  	T624/2002
	Biddulph 329	  	Ventersburg	  	Farm	  	 	598.7216	  	  	 	598.7216	  	  	T624/2002
	De Dam 27	  	Ventersburg	  	Farm	  	 	185.0980	  	  	 	185.0980	  	  	T624/2002
	Le Roux 717 (now 766)	  	Ventersburg	  	RE	  	 	770.8788	  	  	 	901.4614	  	  	T20691/2001
						
	Wintershoek Zuid 28	  	Ventersburg	  	Farm	  	 	1109.8913	  	  	 	1109.8913	  	  	T3818/2002
						
	Steenbokspruit 148	  	Ventersburg	  	Farm	  	 	328.9083	  	  	 	328.9083	  	  	T979/1981
	Total Hectares	  		  		  	 	12055.4543	  	  				  	

  
 

 

 ANNEXURE “3” 

DIAGRAM DEPICTING THE MILLO AREA 

  
 

 

 

 

 ANNEXURE “4” 

REGISTERED DESCRIPTION OF THE MILLO AREA 
  

													
	 Farm Name
	  	 Portion
	  	Area (Ha)	 	  	 Title Deed Number
	  	 District
	  	 Owner

	 Millo 639
	  	RE	  	 	134.7239	  	  	T7618/1976	  	Ventersburg	  	Harmony Gold Mining Co
						
	 Millo 639
	  	1	  	 	41.7660	  	  	T7294/1981	  	Ventersburg	  	Harmony Gold Mining Co
	 Millo 639
	  	2	  	 	1.0606	  	  	T584/1993	  	Ventersburg	  	Transnet Ltd
	 Total
	  		  	 	177.5505	  	  		  		  	

  
 

 

 ANNEXURE “5” 

DIAGRAM DEPICTING THE TWEEPAN AREA 

  
 

 

 

 

 ANNEXURE “6” 

REGISTERED DESCRIPTION OF THE TWEEPAN AREA 
  

															
	 Farm Name
	  	 Portion
	  	Area (Ha)	 	  	 Title Deed Number
	  	 District
	  	 Owner
	  	 SG Diagram No.

	 Tweepan 678
	  	RE	  	 	42.4095	  	  	T29981/2002	  	Ventersburg	  	Bioteko Farmers CC	  	134/1930
	 Tweepan 678
	  	1	  	 	134.4755	  	  	T7618/1976	  	Ventersburg	  	Harmony Gold Mining Co	  	350/1957
	 Tweepan 678
	  	2	  	 	0.6655	  	  	T1904/1993	  	Ventersburg	  	Transnet Ltd	  	93/1992
	 Total
	  		  	 	177.5505	  	  		  		  		  	

  
 

 

 ANNEXURE “7” 

OPTION AGREEMENT 

  
 

 

 CIS/WCG/35 
 MEMORANDUM OF AGREEMENT- CLEAN – WCG35 
 CIS/ABA 

30/04/2004 
 MEMORANDUM OF
AGREEMENT 
 between 
 WITWATERSRAND CONSOLIDATED GOLD 
 RESOURCES (PROPRIETARY)
LIMITED 
 and 
 ARMGOLD/HARMONY FREEGOLD 
 JOINT VENTURE COMPANY (PROPRIETARY) LIMITED

 TABLE OF CONTENTS 

 

							
			
	 1.
	 	Introduction	  	 	2	  
			
	 2.
	 	Definitions and Interpretation	  	 	2	  
			
	 3.
	 	Cession	  	 	7	  
			
	 4.
	 	Registration of Cession	  	 	7	  
			
	 5.
	 	Consideration	  	 	8	  
			
	 6.
	 	Completion	  	 	9	  
			
	 7.
	 	Representations and Warranties	  	 	9	  
			
	 8.
	 	Exploration Programme and Feasibility Study	  	 	12	  
			
	 9.
	 	Option	  	 	14	  
			
	 10.
	 	Termination and breach	  	 	20	  
			
	 11.
	 	Miscellaneous	  	 	30	  

  
 Page 1.

	1.	Introduction 

  

	1.1	Freegold holds the Mineral Rights and the Information. 

  

	1.2	Wits Gold wishes to acquire the Mineral Rights and Information in return for granting Freegold the Option. 

 

	1.3	Subject to the terms and conditions of this Agreement, Freegold has agreed to cede the Mineral Rights to Wits Gold, which has agreed to grant Freegold the Option on the
basis set out in this Agreement. 

  

	2.	Definitions and Interpretation 

  

	2.1	In this Agreement, including the Introduction, the following terms have the following meanings: 

 

							
	2.1.1	  	“Affiliate”	  	-	  	means with respect to any person, any party which controls, is controlled by or is under common control with such person, whether directly or indirectly;
				
	2.1.2	  	“Agreement”	  	-	  	means this Agreement and any Annexes or Schedules to this Agreement;
				
	2.1.3	  	“Business Day”	  	-	  	means any day other than a Saturday, Sunday or official public holiday in South Africa;
				
	2.1.4	  	“Completion”	  	-	  	means completion in terms of clause 6;
				
	2.1.5	  	“Completion Date”	  	-	  	means the first Business Day following either:

  
 Page 2.

							
	2.1.5.1.1	  		  		  	 the date on which the registration of cession of the Mineral Rights to Wits Gold is effected; or

				
	2.1.5.2	  		  		  	 the date of deemed cession and delivery of the Mineral Rights in terms of clause 4.3 in which case Completion takes place on the day before the New
Act comes into effect;

				
		  		  		  	whichever is applicable;
				
	2.1.6	  	“Completion Time”	  	-	  	means 10h00 on the Completion Date;
				
	2.1.7	  	“Exploration Programme”	  	-	  	the integration of a variety of geological techniques, aimed at delineating and quantifying the presence of economic mineralization prior to the undertaking of a Feasibility Study,
to be undertaken by Wits Gold in terms of clause 8;
				
	2.1.8	  	“Feasibility Study”	  	-	  	means an evaluation of the geological, mining, metallurgical, marketing and construction aspects of a mineral deposit previously defined during an Exploration Programme to be
conducted by Wits Gold in terms of clause 8;

  
 Page 3.

							
	2.1.9	  	“Freegold”	  	-	  	means Armgold/Harmony Freegold Joint Venture Company (Proprietary) Limited, a limited liability company with registration No. 2001/029602/07, incorporated under the laws of the
Republic of South Africa;
				
	2.1.10	  	“Information”	  	-	  	means all data, records, geological reports, calculations, maps, interpretations and borehole core from the area of the Mineral Rights in the possession of Freegold, as at the
Signature Date or acquired thereafter;
				
	2.1.11	  	“Group”	  	-	  	means, collectively, a Party and its Affiliates;
				
	2.1.12	  	“Interest”	  	-	  	means, without limitation, a legal, beneficial or equitable interest;
				
	2.1.13	  	“JSE”	  	-	  	means the JSE Securities Exchange, South Africa;
				
	2.1.14	  	“JV”	  	-	  	the joint venture referred to in clause 9.1.2;
				
	2.1.15	  	“JV Agreement”	  	-	  	the joint venture agreement referred to in clause 9.3.2;
				
	2.1.16	  	“Mine or Mines”	  	-	  	means the mine or mines which may be established on the Properties in accordance with this Agreement;

  
 Page 4.

							
	2.1.17	  	“Minerals Act”	  	-	  	means the Minerals Act, No 50 of 1991;
				
	2.1.18	  	“Mineral Rights”	  	-	  	means the mineral rights in respect of the Properties, as set out in Schedule A hereto, held by Freegold and any right, consent or approval into which such rights may be
converted;
				
	2.1.19	  	“New Act”	  	-	  	means the Mineral and Petroleum Resources Development Act, No 28 of 2002;
				
	2.1.20	  	“Nominee”	  	-	  	means any one or more Affiliate/s of Freegold nominated by Freegold to assume any of the rights of Freegold hereunder or under the JV Agreement;
				
	2.1.21	  	“Option”	  	-	  	means the Option granted by Wits Gold to Freegold set out in clause 9;
				
	2.1.22	  	“Parties” or “Party”	  	-	  	means each of Freegold, on the one hand, and Wits Gold on the other hand;
				
	2.1.23	  	“Properties”	  	-	  	means the land to which the Mineral Rights relate;
				
	2.1.24	  	“Signature Date”	  	-	  	means the date of last signature of this Agreement, provided both Parties sign;

  
 Page 5.

							
	2.1.25	  	“Wits Gold”	  	-	  	means Witwatersrand Consolidated Gold Resources (Proprietary) Limited, a private limited liability company, registration no. 2002/031365/07 incorporated under the laws of the
Republic of South Africa;

  

	2.2	In this Agreement: 

  

	2.2.1	unless the context otherwise requires, words denoting the singular include the plural and vice versa, words denoting persons include corporations, partnerships and
other legal persons and references to a person include its successors and permitted assigns; 

  

	2.2.2	a reference to any specified clause, Schedule or Annexure shall be construed as a reference to that specified clause, schedule or annexure of this Agreement and the
Schedules and Annexures are deemed to be incorporated in this Agreement, and a reference to “this Agreement” includes a reference to the Schedules and Annexures; 

 

	2.2.3	a reference to an agreement, law, statute, decree, regulation or other legal instrument shall be construed as a reference to such agreement, law, statute, decree,
regulation or other legal instrument as the same may be amended, varied, supplemented, novated, assigned or re-enacted from time to time; 

  

	2.2.4	the headings and the Table of Contents are inserted for convenience of reference only and shall not affect the interpretation of this Agreement;

  

	2.2.5	the expression “including” shall be construed as meaning “including without limitation”, unless the context otherwise requires; and

  

	2.2.6	 if any provision in the introduction or definitions of this Agreement is a substantive provision conferring rights or imposing obligations on a Party,
effect shall be given to it as if it were a substantive clause in the 

  
 Page 6.

	 	
body of this Agreement, notwithstanding that it is only contained in the introduction or definitions. 

 

	2.3	The rule of construction that the agreement shall be interpreted against the Party responsible for the drafting or preparation of the agreement, shall not apply.

  

	3.	Cession 

 Freegold hereby
cedes to Wits Gold, the Mineral Rights and the Information on the terms and conditions set out in this Agreement, which cession Wits Gold hereby accepts in return for the Option granted to Freegold. 

 

	4.	Registration of Cession 

  

	4.1	Notarial execution and registration of cession of the Mineral Rights to Wits Gold will be effected by Wits Gold’s Attorneys as soon as reasonably possible after
the Signature Date. The Parties undertake on demand to sign all such documents and deliver all such deeds as they may respectively be called upon to sign or deliver by the said attorneys, to enable notarial execution and registration of cession of
the Mineral Rights to be effected. 

  

	4.2	The costs of and incidental to the registration of cession of the Mineral Rights shall be borne and paid by Wits Gold. 

 

	4.3	 In the event that the New Act commences before the registration of cession of the Mineral Rights to Wits Gold and, as a result, registration of cession
of the Mineral Rights to Wits Gold is no longer legally possible, then Freegold hereby grants its consent to Wits Gold, with effect from the day immediately preceding the commencement of the New Act, to prospect for and mine the minerals which form
the subject of the Mineral Rights, for Wits Gold’s own benefit and account, in terms of sections 6(l)(b) and 9(1)(b) of the Minerals Act respectively. The Parties record and agree that this consent will result in Wits Gold then being the holder
of an old order right (as contemplated in Schedule II of the New Act) in respect of the Mineral Rights. The granting of the said consent will, for the purposes of this Agreement, be deemed to be the cession of the Mineral Rights by

  
 Page 7.

	 	
Freegold to Wits Gold, and Freegold shall he deemed to have delivered the Mineral Rights on the day immediately preceding the date of commencement of the New Act. Freegold shall, to the extent
reasonably possible and within its control, provide reasonable assistance and co- operation to Wits Gold, in the event that such assistance or co-operation is necessary in order for Wits Gold to obtain prospecting rights and/or mining rights
pursuant to the provisions of Schedule II to the New Act, in respect of the Mineral Rights, provided that Wits Gold shall indemnify Freegold against all costs, expenses and liabilities incurred by Freegold in providing such assistance and
co-operation, 

  

	4.4	Registration of cession of the Mineral Rights to Wits Gold will be subject to all the title conditions under which the Mineral Rights are held.

  

	4.5	Risk in and benefit to the Mineral Rights shall be deemed to have passed to Wits Gold on the Completion Date. 

 

	5.	Consideration 

  

	5.1	The consideration for the cession of the Mineral Rights to Wits Gold in clause 3 shall be the grant of the Option to Freegold by Wits Gold and the payment in cash by
Wits Gold to Freegold of value-added tax on the value of the Option. 

  

	5.2	The Parties agree that the value of the Option is R1 800 000,00 (ONE MILLION EIGHT HUNDRED RAND) and that the value-added tax payable in terms of clause 5.1 will
accordingly be R252 000.00 (TWO HUNDRED AND FIFTY TWO THOUSAND RAND), which amount will be paid by Wits Gold to Freegold on the first Business Day after the Signature Date. 

 

	5.3	 Wits Gold hereby indemnifies Freegold in relation to any capital gains tax imposed upon Freegold as a result of this sale or the granting of the Option
up to a limit of R1 000 000 (ONE MILLION RAND). Wits Gold hereby undertakes to pay to Freegold an amount equal to any such capital gains tax 

  
 Page 8.

	 	
imposed on Freegold within 3 (THREE) Business Days of a written request from Freegold in respect thereof. 

 

	6.	Completion 

  

	6.1	Completion of the transactions contemplated hereby shall occur on the Completion Date at the Completion Time and if registration of cession of the Mineral Rights in
terms of clause 4.1 has been effected. Completion will take place at First Floor, 4 The High Street, Melrose Arch, Melrose North at which a representative of Freegold and Wits Gold will meet, and Completion will be effected by the Wits Gold
representative delivering to the Freegold representative proof of the registration of cession of the Mineral Rights to Wits Gold, unless the provisions of 4.3 are applicable, in which event Completion shall be deemed to have taken place the day
before the day of commencement of the New Act. 

  

	6.2	Both Parties undertake to use their reasonable endeavours to ensure that Completion is effected as soon as reasonably possible. 

 

	7.	Representations and Warranties 

  

	7.1	Mutual representations and warranties 

 As at the Signature Date and the Completion Date, each Party represents to the other that: 
  

	7.1.1	it is a company duly incorporated, validly subsisting and in good standing under the laws of South Africa; 

 

	7.1.2	it has all requisite capacity, power and authority to carry on its business and to enter into this Agreement and any agreement or instrument referred to or contemplated
by this Agreement and to carry out and perform all of its obligations and duties hereunder and thereunder; and 

  

	7.1.3	no proceedings are pending, and it is not aware of any basis for institution of any proceedings, for its dissolution or winding-up. 

  
 Page 9.

	7.2	Freegold representations and warranties 

  

	7.2.1	Freegold warrants to Wits Gold that as at the Signature Date and the day immediately prior to the Completion Date: 

 

	7.2.1.1	Freegold is the registered holder of the Mineral Rights, subject to any registered bonds thereover; 

 

	7.2.1.2	Freegold is able to cede ownership of the Mineral Rights to Wits Gold in terms of this Agreement (subject to the provisions of 4.3) and subject to the necessary consent
from bondholders being obtained; 

  

	7.2.1.3	it has not granted to any third party any consent contemplated in section 6(l)(b) or section 9(l)(b) of the Minerals Act, or otherwise or any other right to prospect or
mine, in respect of the Mineral Rights. 

  

	7.2.2	Save for the warranties in clause 7.2.1, Freegold gives no other warranties or undertakings and the Mineral Rights are sold voetstoots. 

 

	7.3	Wits Gold representations and warranties 

 As at the Signature Date and the Completion Date, Wits Gold represents and warrants to Freegold. 
  

	7.3.1	 that consistent with the objectives of the proposed Charter on broad based socio-economic empowerment contemplated in section 100 of the New Act, more
than 26% (TWENTY SIX PERCENT) of the present ordinary shareholders of Wits Gold will be derived from various groupings of historically disadvantaged South Africans as defined in the said Charter. The structure as outlined in Schedule B will be
formalised by means of a Shareholders Agreement that will be signed by representatives of the different groups of shareholders on or before 30 June 2004. Such shareholders agreement shall provide for a lock up of the shares in Wits Gold held by
Historically Disadvantaged Persons at least until the Mineral Rights are substituted by new rights 

  
 Page 10.

	 	
under the New Act. Failure to sign such agreement before 30 June 2004 shall result in Freegold having the option to terminate this Agreement and retake possession, control, ownership of and
risk in and benefit to the Mineral Rights or any rights that Wits Gold has in relation thereto under the New Act free of consideration; 

  

	7.3.2	none of the execution and delivery of this Agreement, the performance by Wits Gold of its obligations hereunder, and the representations and warranties given by Wits
Gold hereunder, conflict with or will conflict with, accelerate the performance required by, result in any breach or contravention of, constitute a material default under or result in the creation of any material encumbrance, lien or charge under or
pursuant to the provisions of: (i) any law applicable to Wits Gold; or (ii) the memorandum and articles of association or resolutions of the directors (or any committee thereof) or shareholders of Wits Gold which are in effect at the date
hereof; or (iii) any mortgage, contract, agreement, instrument, lease or other document to which Wits Gold is bound; or (iv) any judgment or order binding Wits Gold or the property or assets of Wits Gold; 

 

	7.3.3	except as have been obtained prior to Completion, no approval, authorisation, consent or other order of, and no filing, registration or recording with, any governmental
authority is required by Wits Gold in connection with the execution and delivery or with the performance by Wits Gold of its obligations in terms of this Agreement; 

 

	7.3.4	Wits Gold is in compliance with all by-laws, rules and regulations and all announcements and documents filed by or on behalf of Wits Gold were true and correct in all
material respects, provided full, true and plain disclosure of all material facts relevant to Wits Gold and its respective assets and undertakings to the extent required and did not contain a material misrepresentation as at the respective dates of
such filings and there has been no material change to the respective assets and undertakings of Wits Gold; and 

  
 Page 11.

	7.3.5	no representation or warranty made by it in this Agreement, or any statement, schedule, certificate or other document delivered by it pursuant to or in connection with
this Agreement, or in connection with any transaction contemplated hereby, whether in the form of a physical document, letter, electronic file, email or otherwise, contains any untrue statement of a material fact or omits to state a material fact
required to be stated herein or therein or necessary to make the statements contained herein or therein not misleading. 

  

	7.4	Survival and acknowledgement 

  

	7.4.1	The representations and warranties set forth in this Agreement shall survive the execution and Completion of this Agreement and continue in full force and effect until
the expiry of the relevant limitation periods under applicable law. 

  

	7.4.2	The Parties acknowledge that the representations and warranties made are made with the intention of persuading each other to enter into this Agreement and that the
Parties have entered into this Agreement on the basis of, and in full reliance on, each of such representations and warranties. 

  

	8.	Exploration Programme and Feasibility Study 

  

	8.1	Wits Gold undertakes to conduct at Wits Gold’s sole cost, an appropriate Exploration Programme over the Properties and, if in the opinion of the Wits Gold board of
directors, a Feasibility Study is justified, to conduct a Feasibility Study in a form and of such scope as would be reasonably acceptable to financiers financing the proposed establishment of a Mine or Mines on the Properties.

  

	8.2	 The Parties shall forthwith after the Signature Date form an exploration committee comprising 4 (FOUR) representatives of which 2 (TWO) each shall be
appointed by Freegold and Wits Gold, in order to give effect to 

  
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Wits Gold’s undertaking in 8.1. The chairman of the said exploration committee shall be appointed by Wits Gold and he shall have a casting vote. The exploration committee, at its first
meeting, shall set its own rules and procedures. 

  

	8.3	If the Feasibility Study indicates that it is technically and commercially viable to proceed with the establishment of the Mine or Mines, then Wits Gold shall, in
accordance with its internal procedures, seek a decision from its board of directors on whether or not to proceed with the establishment of the Mine or Mines. 

 

	8.4	If the board of directors of Wits Gold decides in terms of clause 8.3 to proceed with the establishment of the Mine or Mines, Wits Gold shall notify Freegold of this
decision in writing within 3 (THREE) Business Days after the decision has been made and shall simultaneously make available to Freegold all information and documentation which the board of directors of Wits Gold had at its disposal when it made the
decision to proceed, including the costs incurred in conducting the Feasibility Study. 

  

	8.5	Should the board of directors of Wits Gold decide in terms of clause 8.3 not to proceed with the establishment of the Mine or Mines, but decide at any later date to do
so, then Wits Gold shall notify Freegold of such decision in writing within 3 (THREE) Business Days after such decision has been made and shall simultaneously make available to Freegold all information and documentation which the board of directors
of Wits Gold had at its disposal when it made the subsequent decision to proceed, including the costs incurred in conducting the Feasibility Study. 

  

	8.6	Neither Wits Gold nor any other member of the Wits Gold Group shall enter into or establish a joint venture or project in respect of, transfer, convey, assign or grant
an option in respect of or grant a right to purchase or in any manner transfer or alienate or agree to transfer or alienate any portion of its Interest in, or rights to acquire an Interest in, the Mineral Rights to any third party, unless:

  

	8.6.1	Freegold has given its prior written approval therefor, and 

  
 Page 13.

	8.6.2	in the event of a cession of any of the Mineral Rights to such third party, the Mineral Rights are sold for fair market value and, upon cession of the Mineral Rights to
the third party. Wits Gold pays to Freegold 50% (FIFTY PERCENT) of the proceeds of such disposal of the Mineral Rights, less three times the sum of the actual costs of the Exploration Programme and the Feasibility Study (that is, the payment to
Freegold = 0.5*(proceeds from sale of Mineral Rights) - 3*(actual costs of the Exploration Programme and + actual costs of the Feasibility Study)), where the payment to Freegold shall always be zero or greater than zero. 

 

	8.7	The restrictions in 8.6 shall not prevent Wits Gold encumbering the Mineral Rights in favour of a financial institution as security for expenditure incurred or to be
incurred by Wits Gold on the Properties; provided that the relevant financers shall be bound by a right of first refusal in favour of Freegold in respect of the Mineral Rights on the terms set out, mutatis mutandis, in 9.3.2.12.

  

	9.	Option 

  

	9.1	Grant of Option 

  

	9.1.1	Should the board of directors of Wits Gold decide to proceed with the establishment of the Mine or Mines in terms of clause 8.4 or clause 8.5, Wits Gold hereby
irrevocably grants to Freegold or its Nominee the sole and exclusive right to acquire, at its sole discretion, up to a 40% (FORTY PERCENT) beneficial Interest in the Mine or Mines, at the price determined in terms of clause 9.3.2.1, provided that at
all times Freegold shall be freely entitled to cede and assign to an Affiliate their rights and obligations under this clause 9 on written notice to Wits Gold. For purposes of this clause 9 “the Other Participant” refers to Freegold
or the Affiliate or both of them, as the case may be, from time to time. 

  

	9.1.2	 Upon the exercise of the Option, the Other Participant and Wits Gold will be deemed to have concluded a joint venture in accordance with

  
 Page 14.

	 	
the provisions of 9,3.2. The Parties shall, however, after exercise of the Option negotiate in good faith any changes to the terms set out in clause 9.3.2 with a view to maximising organisational
and operational efficiencies and to incorporating tax and other related legal concerns including the implications of the New Act once effective. The Parties shall further investigate whether the JV shall be incorporated or unincorporated especially
in the light of security of tenure and tax considerations. If the Parties are unable to agree on changes to the terms set out in clause 9.3.2 including the corporate structure of the JV, the provisions of clause 9.3.2 shall continue to bind the
Parties. 

  

	9.2	Period of Option 

 The
Option shall be exercisable by the Other Participant within 90 (NINETY) Business Days after receipt by the Other Participant of the decisions, information and documentation referred to in either clause 8.4 or clause 8.5. The exercise of the Option
will be subject to any relevant consents or permissions being required in law whether in terms of the New Act, the Competition Act 1998 or otherwise. 
  

	9.3	Exercise of the Option 

  

	9.3.1	Any exercise of the Option shall be in writing and delivered to Wits Gold at the address provided for in clause 11.4. 

 

	9.3.2	The Parties agree that should the Other Participant exercise the Option in respect of any Mine then the Parties will be deemed to have entered into a JV Agreement in
respect of such Mine in accordance with the following terms: 

  

	9.3.2.1	 the Other Participant will reimburse Wits Gold in cash 40% (FORTY PERCENT) of the actual costs of the Exploration Programme and the Feasibility Study
plus value added tax in consideration for a 40% (FORTY PERCENT) Interest in the JV or a pro rata sum should the Other Participant elect to 

  
 Page 15.

	 	
acquire less than 40% (FORTY PERCENT), payable within 30 (THIRTY) days after exercise of the Option; 

  

	9.3.2.2	all costs and profits related to the JV will be shared by the Other Participant and Wits Gold in proportion to their Interests in the JV from time to time. To the
extent that one Party does not contribute its share of such costs, the other Party will be entitled to make such contribution, and there will be a proportionate dilution of the non-contributing Party’s Interest in the JV. Dilution will occur in
accordance with a dilution formula which will be based on the sum of all costs that are reasonably, necessarily and actually incurred in effecting completion of the Exploration Programme and the Feasibility Study, and all cash calls at that time (as
defined in clause 9.3.2.8.4) by the Operator and/or the JV; 

  

	9.3.2.3	Wits Gold and Freegold, at the cost of the JV, will obtain all authorisations and permits necessary for the operation of the Mine or Mines, including without
limitation, all necessary mining authorisations, mining rights and the approval of appropriate environmental management programs, preferably in the names of the Parties in unincorporated joint venture reflecting their respective Interests in the JV,
provided that should the JV terminate or their authorisations and permits lapse, should Wits Gold either itself or through another entity to which it is affiliated in any manner whatsoever, obtain a right to prospect or mine on the Properties, then
the provisions of this clause 9 shall be deemed to apply in respect of Wits Gold’s interest in the Properties: 

  

	9.3.2.4	 day-to-day JV activities will be conducted by a management committee established for this purpose (“the Management Committee”) and
comprising initially of four members, each Party appointing two members thereof. The Party with the largest ownership Interest in the JV will have the right to 

  
 Page 16.

	 	
appoint a member of the Management Committee as the Chairperson of the Management Committee. Unless specifically provided otherwise, all Management Committee decisions will be made by simple
majority vote with each member having one vote and, in the event of a deadlock, the Chairperson having a casting vote. Where a Party’s Interest in the JV drops to below 25% (TWENTY FIVE PERCENT) it shall only be entitled to appoint one member
into the Management Committee and the Management Committee shall accordingly comprise of one less member; 

  

	9.3.2.5	the Party that holds a greater than 50% (FIFTY PERCENT) Interest in the JV or, if each Party holds a 50% (FIFTY PERCENT) Interest in the JV, then Wits Gold or its
Nominee, shall be the first JV operator (“Operator”) and will be entitled to remain so (subject to its ability to terminate such appointment) unless its JV Interest is reduced below 50% (FIFTY PERCENT). The remuneration of the
Operator will be payable quarterly to the Operator and will be equal to 2% (TWO PERCENT) of the revenues generated by the JV in each quarter, plus value added tax; 

 

	9.3.2.6	Wits Gold undertakes to contribute and make available to the JV – 

  

	9.3.2.6.1	the Mineral Rights; 

  

	9.3.2.6.2	any prospecting permits and/or mining authorisations in relation to the Mineral Rights, which it may hold; and 

 

	9.3.2.6.3	any Environmental Management Programmes (“EMP’s”) which it may have submitted for approval, or in respect of which it has obtained approval,

 subject to the provisions of 9.3.2.3; 

  
 Page 17.

	9.3.2.7	Wits Gold undertakes to contribute and make available to the JV all prospecting information, geological interpretations, data and information relating to the Mineral
Rights, including all rights, permissions and requirements at Wits Gold’s disposal and reasonably required to conduct the JV operations; 

  

	9.3.2.8	the Operator shall: 

  

	9.3.2.8.1	keep all JV property in good standing and free of encumbrances, comply with laws and maintain proper books and accounts and adequate insurance;

  

	9.3.2.8.2	prepare and submit monthly and quarterly reports to the Management Committee; 

 

	9.3.2.8.3	conduct activities according to work programmes and budgets approved by the Management Committee and otherwise in accordance with good mining practice; and

  

	9.3.2.8.4	have the right to call for funds from the Parties, for example, by means of the provision of a loan to, or the purchase of a further Interest in, the JV (“cash
call”) in advance on a quarterly basis to cover anticipated work programme expenditures (including a reasonable amount of working capital) which have been approved by the Management Committee. The Other Participant shall not be obliged to
fund, but if it does not, the provisions of clause 9.3.2.2 shall apply; 

  

	9.3.2.9	all JV operations are to be conducted, all expenditures are to be incurred and all assets are to be acquired only pursuant to work programmes and budgets approved by
the Management Committee; 

  

	9.3.2.10	 the Operator is to submit annual work programmes and budgets for Management Committee approval at least 60 days

  
 Page 18.

	 	
prior to the completion of previous work programmes and budgets; 

  

	9.3.2.11	notwithstanding any other provisions in the JV Agreement, the following matters will require the approval of the holders of at least 75% (SEVENTY FIVE PERCENT) of the
Interests in the JV: 

  

	9.3.2.11.1	the initiation and settlement of any litigious proceedings; 

  

	9.3.2.11.2	the pledging or encumbering of JV assets; 

  

	9.3.2.11.3	the issuance or allotment of repurchase of shares, share options, warrants or debentures in any corporate vehicle established or used in connection with the JV;

  

	9.3.2.11.4	non-arm’s length transactions between the JV and any participant therein; 

 

	9.3.2.11.5	the alteration of share capital of any corporate vehicle, any changes in dividend policies and amendments to any constituent documents of any corporate vehicle
established or used in connection with the JV; 

  

	9.3.2.11.6	material deviations from any work programme and budget approved by the Management Committee; and 

 

	9.3.2.11.7	the initial capital expenditure budgets to construct the Mine, and the funding thereof; 

 

	9.3.2.11.8	approval of annual budgets and strategic and annual business plans or other similar operating plans and any modification thereof; 

 

	9.3.2.11.9	the issue or giving of any guarantees, suretyships, letters of comfort or other similar undertakings of any nature whatsoever; 

  
 Page 19.

	9.3.2.11.10	the establishment or the acquisition and purchase of other businesses, either directly or indirectly by means of purchasing shares in or assets of the company to which
such business may belong; 

  

	9.3.2.11.11	any disposal of the business or assets of the JV (other than, in the assets, in the ordinary course of business); 

 

	9.3.2.11.12	the appointment or dismissal of senior executives of the JV; 

  

	9.3.2.11.13	the incurring of any borrowings or debt not approved in the annual budget, which give rise to an aggregate liability in respect of all such matters in any financial
year in excess of R500 000; 

  

	9.3.2.11.14	any capital expenditure or commitment not approved in the annual budget; 

  

	9.3.2.11.15	any change in the basis of accounting or accounting policies from those used during the immediately preceding financial year otherwise than in accordance with generally
accepted accounting practice; 

  

	9.3.2.11.16	the purchase, sale, hiring, letting or sub-letting of any immovable property; 

 

	9.3.2.11.17	the appointment and removal of auditors, consultants or advisors to the JV; and 

 

	9.3.2.11.18	the approval of transactions and contracts outside the ordinary course of the JV’s business; 

 

	9.3.2.12	

  

	9.3.2.12.1	 Except as provided in clauses 9.3.2.12.2, 9.3.2.12.3 and 9.3.2.12.4 a Party may not directly or indirectly, sell, transfer, assign or otherwise dispose
of, or further grant a 

  
 Page 20.

	 	
security interest or create a right of participation in or otherwise encumber its Interest or its rights under or in respect of this Agreement or any part thereof, and no Party shall commit to do
the same unless in each case approved by the other Party in writing and any attempt to do so shall be void. 

  

	9.3.2.12.2	In the event of the execution of an agreement providing for the acquisition (“the Acquisition Agreement”) by any third party (“the Acquiring
Third Party”) of a Party’s (“the Disposing Participant”) Interest, the other Party (“the Remaining Participant”) shall have a right of first refusal to acquire same on the same terms and conditions as
set out in the Acquisition Agreement, subject to the following terms: 

  

	 	(a)	the Disposing Participant shall within 5 (FIVE) Business Days after the execution of the Acquisition Agreement, provide a copy of and in writing notify the Remaining
Participant of the Acquisition Agreement (“the Acquisition Notice”); 

  

	 	(b)	the Remaining Participant shall in writing notify its intention to exercise its right of first refusal to the Disposing Participant within 30 (THIRTY) Business Days of
the Acquisition Notice; 

  

	 	(c)	if the Remaining Participant is prevented from acquiring the Interest of the Disposing Participant due to antitrust or other regulatory or governmental restrictions, it
may, during the period provided for in clause (b) designate (by notice given to the Disposing Participant) a third party (“the Designated Third Party”) which may exercise the Remaining Participant’s right of first refusal
hereunder. 

  
 Page 21.

	9.3.2.12.3	In the event of a disposal of a Participant’s Interest as provided for in clause 9.3.2.12.2, the Disposing Participant is obliged to procure that and the
Acquisition Agreement will not be effective until the Acquiring Third Party (or Designated Third Party) has entered into an agreement with the other Participant (which agreement shall not constitute a release of the Disposing Participant from its
obligations under this Agreement) whereby such Acquiring Third Party (or Designated Third Party) agrees to assume and be bound by all obligations and liabilities of the Disposing Participant and subject to all the restrictions of which the Disposing
Participant in respect of the JV is subject under this Agreement. 

  

	9.3.2.12.4	Where a Party’s Interest in the JV drops to below 10% (TEN PERCENT) the other Party shall be entitled to acquire such Interest in consideration for an amount which
is equal to a corresponding percentage of the sum of all costs that are reasonably, necessarily and actually incurred in effecting completion of the Exploration Programme and the Feasibility Study, and all cash calls (as defined in clause 9.3.2.8.4)
at that time by the Operator and/or the JV; 

  

	9.3.2.13	the Parties will not be entitled to encumber any Interest in the JV, with the exception of encumbrances agreed between the Parties in writing and for the purposes of
financing the JV activities; 

  

	9.3.2.14	the provisions of clauses 2.2, 7, 10 and 11.2 to 11.11 inclusive shall apply, mutatis mutandis, to the JV Agreement and are hereby incorporated by reference;

  

	9.3.2.15	 unless otherwise agreed between the Parties, all the rights and obligations which accrue to and are incurred by them as

  
 Page 22.

	 	
against third parties in pursuing the objects of the JV in accordance with the provisions of the JV Agreement, shall accrue to and be incurred by them severally in accordance with their
Interests, and not jointly and severally; 

  

	9.3.2.16	nothing in the JV Agreement shall be construed as creating a partnership between the Parties, their intention being merely to co-operate with each other and to act
together as the co-owners of the Mine/s; 

  

	9.3.2.17	save as may otherwise be permitted by the JV Agreement, none of the Parties shall be entitled to incur any obligations on behalf of the others or to act on behalf of
the others or to act on behalf of or bind the JV or any Party; 

  

	9.3.2.18	the business of the JV shall be to prospect for, mine for and recover gold, silver, uranium and pyrite on and under the Mine and any other area decided upon by the
Management Committee and incorporated within the ambit of this Agreement; 

  

	9.3.2.19	each financial year of the JV shall end on 30 June until changed by resolution of the Management Committee; 

 

	9.3.2.20	 the JV shall keep full, complete and accurate books of account, records and information with respect to any of the JV’s affairs. Entries shall be
made in such books of account and records of all such matters, transactions and things are usually written and entered in books of account and records kept by persons or entities engaged in businesses similar to the business of the JV. Each Party
shall have the right, acting reasonably, to audit, examine, and make copies of or extracts from the books of account and records of the JV at all reasonable times during usual business hours. Such right may be exercised through any agent or employee
of such Party designated by it, or by an independent chartered accountant designated by such Party. 

  
 Page 23.

	 	
Each Party shall bear all expenses incurred in any examination made for such Party’s account; 

  

	9.3.2.21	the initial auditors of the JV shall be such internationally recognised firm of chartered accountants as is selected by mutual agreement between the Parties following a
tender process. All audit reports and reports to management on internal controls and procedures prepared by the auditors of the JV, shall be made available to the Management Committee and each of the Parties. The audit fee to be paid to the auditors
of the JV shall be fixed from time to time by the Management Committee; 

  

	9.3.2.22	the Management Committee shall provide each Party with audited financial statements prepared in accordance with IAS together with the report of the auditors thereon, to
meet the reporting requirements of the Parties; 

  

	9.3.2.23	the Management Committee and each Party shall be provided with a monthly management and financial report and such other financial and operating information as may be
reasonably requested from time to time by any Party or the Management Committee. The Management Committee shall ensure that the monthly management and financial reports are compiled to reflect the results of the JV in South African Rand;

  

	9.3.2.24	 the JV shall from time to time open an account or accounts with such bank or banks as the Management Committee may determine, such accounts to be
maintained in the name of the JV. All monies from time to time received by, or on account of, the JV shall be deposited forthwith preferably by electronic transfer in such JV accounts and all disbursements on account of the JV shall be drawn upon
such JV account or accounts. Such persons as may from time to time be designated by resolution of the Management Committee, may draw cheques 

  
 Page 24.

	 	
in the name of the JV and may sign, endorse and accept in the name of the JV, any bills, notes, cheques, drafts or other instruments for the purpose of the business of the JV, subject to such
restrictions as may from time to time be prescribed by the Management Committee; 

  

	9.3.2.25	the JV shall prepare and deliver to either Party any information packages or other information which such Party reasonably requests in connection with any domestic or
foreign tax or other governmental filing to be made by such Party or any of its Affiliates, provided that such Party reimburses the JV for the incidental out of pocket costs incurred by the JV in preparing and delivering any such information
packages or information (including but not limited to reasonable costs in respect of the JV’s own personnel and facilities); 

  

	9.3.2.26	having regard to the risks to which each of the Parties is exposed in the mining operations prudent and appropriate insurance policies shall be carried by the Parties
on an ongoing basis in order to minimise risks as far as is reasonably possible and cost effectively; 

  

	9.3.2.27	the Operator shall on receipt of all monies paid to suppliers for production from the Mine and all monies received for the sale of by-products, deposit such monies into
the bank account of the JV; 

  

	9.3.2.28	the Manager shall advise the Parties of funds held in the JV bank account that are surplus to the immediate requirements of the JV and the Mine;

  

	9.3.2.29	 the Parties will maintain the profit distribution policy whereby, subject to the making of appropriate specific reservations, the portion of annual
profit to be distributed and the portion thereof to be retained, will be commensurate with the maintaining of a sound financial position of the JV provided 

  
 Page 25.

	 	
that the profits of the JV shall be distributed on a quarterly basis; 

  

	9.3.2.30	it is recorded that the Mine and the JV shall be operated for the Mine and the Parties individually and each of them shall each be liable separately to account for
profit or loss from the Mine and for the payment of income tax thereon, according to their respective Interests; 

  

	9.3.2.31	if any Party is prevented or restricted directly or indirectly from carrying out all or any of its obligations under the JV Agreement from any cause beyond the
reasonable control of that Party (including without limiting the generality of the aforegoing, war, civil commotion, riot, insurrection, strikes, lock-outs, fire, explosion, flood and acts of God, or by invasion of or sit-ins at the Mine, or where a
Party is prevented from occupying or operating any part of the Mine by combination of workmen or interference by trades union), the Party so affected shall be relieved of its obligations hereunder during the period that such event and its
consequences continue but only to the extent so prevented and shall not be liable for any delay or failure in the performance of any obligations hereunder of loss of damages either general, special or consequential which the other Party may suffer
due to or resulting from such delay or failure, provided always that written notice shall within 48 (FORTY EIGHT) hours of the occurrence constituting Force Majeure be given of any such inability to perform by the affected Party and provided further
that the obligation to give such notice shall be suspended to the extent necessitated by such Force Majeure; 

  

	9.3.2.32	any Party invoking Force Majeure shall use its best endeavours to terminate the circumstances giving rise to Force Majeure and upon termination of the circumstances
giving rise thereto, shall forthwith give written notice thereof to the other Parties; 

  
 Page 26.

	9.3.2.33	if the full and proper implementation of this Agreement is precluded by any of the events or a combination of the events contemplated in clause 9.3.2.31 for a period of
more than 12 (TWELVE) consecutive months at any one time, then and in such event the Parties shall endeavour to conclude new arrangements equitable to both of them and should they fail to agree upon any such new arrangements within 90 (NINETY) days
of either Party calling upon the other to do so, either Party shall be entitled to terminate the JV Agreement and the provisions of 9.3.2.34.1 shall apply. 

 

	9.3.2.34	

  

	9.3.2.34.1	In the event that the JV is liquidated at any time, the JV assets shall be distributed by the JV to the Parties on such liquidation, in accordance with the provisions
set out in this clause. 

  

	9.3.2.34.2	The liquidator of the JV shall, unless otherwise agreed, be a member of the auditors of the JV at the date of liquidation or, if no such member is able or willing to
act, an auditor agreed upon between the Parties, and failing such agreement, appointed by lot. 

  

	9.3.2.34.3	The liquidator shall: 

  

	 	(i)	demand an account from each Party of the assets of the JV and the assets of the Parties contributed to the JV in its possession as well as any profits earned by the use
or utilisation of those assets since the date of liquidation of the JV; 

  

	 	(ii)	compile an account reflecting the assets and liabilities of the JV, including amounts owed by the JV to the Parties; 

  
 Page 27.

	 	(iii)	collect all debts due to the JV by persons other than the Parties; 

  

	 	(iv)	realise the assets of the JV in whatever manner he deems fit, to the extent that he, in his sole discretion, deems necessary, to: 

 

	 	•	 	 pay the creditors of the JV; 

  

	 	•	 	 pay the expenses of such realisation and the liquidation; 

 

	 	•	 	 settle any claims between the Parties arising from the JV; and 

 

	 	•	 	 effect a distribution of the remaining assets or the proceeds thereof in accordance with the Parties’ respective Interests;

  

	9.3.2.34.4	in the event of the proceeds of the realisation of the JV assets proving insufficient to meet the liabilities of the JV (other than any amounts due to the Parties),
levy a contribution upon the Parties to contribute to that deficit in the proportion in which they bear the losses of the JV; 

  

	9.3.2.34.5	discharge all the liabilities of the JV to its creditors other than the Parties insofar as the proceeds of the realisation of the JV assets (if any), permit; and

  

	9.3.2.34.6	compile and settle an account for the payment of claims owing by the JV to the Parties, the settlement of their claims against each other and the distribution of any
assets remaining amongst the Parties in accordance with this 9.3.2.34 with due account being taken of amounts owing by either of the Parties to the JV. 

  
 Page 28.

	93.2.35	it is recorded that certain of the Mineral Rights are subject to subscription rights or participation rights in favour of Southern Prospecting (Proprietary) Limited or
Lydenburg Exploration Limited the details of which have been disclosed to Wits Gold, which agrees to be bound thereby. In the event of Freegold exercising the Option, the Interest of Wits Gold and Freegold in the JV shall be proportionately diluted
to accommodate either or both of Southern Prospecting (Proprietary) Limited and Lydenburg Exploration Limited. 

  

	10.	Termination and breach 

  

	10.1	Should either Party commit a breach of any of the material provisions of this Agreement and fail to remedy such breach within 10 (TEN) Business Days after receiving
written notice from any other Party aggrieved thereby, requiring the defaulting Party to do so, then the aggrieved Party shall be entitled, without prejudice to the aggrieved Party’s other rights in law, to cancel this Agreement or to claim
specific performance of all the defaulting Party’s obligations then due, in either event, without prejudice to the aggrieved Party’s rights to claim damages. 

 

	10.2	Notwithstanding the aforegoing, the Parties agree that none of them shall have any claim for indirect loss and/or consequential loss or damages as a result of the
breach by the other Party of the provisions of this Agreement and any execution of any judgment obtained by either Party against the other may be satisfied only against the assets and rights of the JV or the defaulting Party’s Interest.

  

	10.3	The Parties agree not to invoke the right to cancel this Agreement. 

  
 Page 29.

	11.	Miscellaneous 

  

	11.1	Effective date 

 This
Agreement shall become effective on the Signature Date hereof. 
  

	11.2	Governing law 

 This
Agreement shall be governed by and construed in accordance with the laws of South Africa. 
  

	11.3	Dispute Resolution 

  

	11.3.1	Any disputes between the Parties arising out of or in terms of or pursuant to the provisions of this Agreement will be resolved in the following manner:

  

	11.3.1.1	matters which cannot be resolved at the Management Committee will be referred to the chief operating officers of the Parties respectively; 

 

	113.1.2	if a matter referred to the chief operating officers of the Parties respectively in terms of clause 11.3.1.1 above is not resolved between them within 14 (FOURTEEN)
days after the date on which it is referred to them, the matter will be referred to the respective chairmen at that time of the Parties for resolution by them; 

 

	11.3.1.3	any dispute to which the provisions of this clause 11.3.1 apply which is not resolved in terms of clauses 11.3.1.1 and 11.3.1.2 will be referred to arbitration in
accordance with the provisions of clauses 11.3.2 and 11.3.3 below. 

  

	11.3.2	Any dispute arising from or in connection with this Agreement shall be finally resolved in accordance with the Rules of the Arbitration Foundation of Southern Africa by
an arbitrator or arbitrators agreed by the Parties or failing such agreement within 14 (FOURTEEN) days of the notification of the dispute appointed by the Foundation. 

  
 Page 30.

	11.3.3	Save in the case of manifest error the decision of the arbitrator(s) shall be final and binding on the Parties, and may be made an order of any Court of competent
jurisdiction. Each of the Parties hereby submits itself to the jurisdiction of the Witwatersrand Local Division of the High Court of south Africa should the other Party wish to make the arbitrator’s decision an order of that Court.

  

	11.4	Notices 

  

	11.4.1	Any demand, notice or other communication to be given in connection with and as contemplated under this Agreement will be given in writing by personal delivery or by
facsimile addressed to the recipient as follows: 

 Wits Gold: 

Physical 
 12th Floor

 SA Eagle House 
 70 Fox Street 
 Johannesburg 

Telefax: (011) 834 1708 
 Contact: CEO 
 Freegold: 

Physical 

Block 27 

Randfontein Office Park 
 Cnr Main Reef Road and Ward Avenue 
 Randfontein 

Telefax: (011)411 2398 
 Contact: The Company Secretary 
 or to such other address in South Africa (not
being a post office box or poste restante), facsimile number or contact person as may be designated by written notice given by either Party to the other. 
  

	11.4.2	Any demand, notice or other communication given in terms of this Agreement shall be in writing and shall – 

  
 Page 31.

	11.4.2.1	if delivered by hand be conclusively deemed to have been duly received by the addressee on the date of delivery thereof; and 

 

	11.4.2.2	if transmitted by facsimile be conclusively deemed to have been received by the addressee on the day of transmittal thereof if given during the normal business hours of
the recipient, and on the Business Day during which such normal business hours next occur if not given during such hours on any day. 

  

	11.4.2.3	Notwithstanding anything to the contrary contained in this Agreement, a written notice or communication actually received by one of the Parties from the other excluding
by way of electronic mail addressed to the persons described in clause 11.4.1, shall be adequate written notice or communication to such party. 

  

	11.5	Rights, remedies, and waivers 

 The rights and remedies of either Party (the “Non-Defaulting Party”) in relation to any misrepresentations or breach of warranty on the part of the other shall not be prejudiced by any
investigation by or on behalf of the Non-Defaulting Party into the affairs of the other, by the execution or the performance of this Agreement or by any other act or thing which may be done by or on behalf of the Non-Defaulting Party in connection
with this Agreement and which might, apart from this clause, prejudice such rights or remedies. 
  

	11.6	Further assurances, implementation and good faith 

  

	11.6.1	Each Party shall, at the reasonable request of the other Party, do all such acts and things reasonably necessary or desirable to give effect to the transactions
effected or to be effected pursuant to this Agreement. 

  

	11.6.2	 The Parties shall at all times during the continuance of this Agreement observe the principles of good faith towards one another in the

  
 Page 32.

	 	
performance of their obligations in terms of this Agreement. This implies, without limiting the generality of the aforegoing, that they – 

 

	11.6.2.1	will at all times during the term of this Agreement act reasonably, honestly and in good faith; 

 

	11.6.2.2	will perform their obligations arising from this Agreement diligently and with reasonable care; and 

 

	11.6.2.3	will make full disclosure to each other of any matter that may affect the execution of this Agreement. 

 

	11.7	Fees 

 Each of the Parties
shall pay their respective legal, accounting and all other costs and expenses incurred in connection with the preparation and execution of this Agreement. 
  

	11.8	Severance 

 If at any time
any non-material provision of this Agreement is or becomes invalid or illegal in any respect, such provision shall be deemed to be severed from this Agreement but the validity, legality and enforceability of the remaining provisions of this
Agreement shall not be affected or impaired thereby. 
  

	11.9	Entire agreement / amendment and waiver 

 This Agreement and the documents referred to herein constitute the entire obligation of the Parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or
understandings with respect to the subject matter of this Agreement. Any amendment to, or waiver by either Party of any of the terms or conditions of, or consent given by either Party under, this Agreement (including, without limitation, this
clause) shall be in writing, signed by the relevant Party and, in the case of an amendment, by both Parties. 
  

	11.10	Successors and assigns and transfer of Mineral Rights 

  
 Page 33.

	11.10.1	This Agreement shall bind and inure to the benefit of the respective successors and assigns of the Parties hereto, provided that Wits Gold may not (subject to the
provisions of 8.6) assign or otherwise transfer all or any part of its rights or obligations under this Agreement without the prior written consent of Freegold, which consent shall not be unreasonably withheld. 

 

	11.10.2	Subject to 9.1.1, Freegold may not assign or otherwise transfer all or any part of their rights and obligations under this Agreement without the prior written consent
of Wits Gold, which consent shall not be unreasonably withheld. 

  

	11.11	Confidentiality and public announcements 

  

	11.11.1	Each Party undertakes to keep the provisions of this Agreement and any confidential information obtained from the other Party (together, the “Confidential
Information”), confidential and not to disclose such Confidential Information to third parties, save that the Parties will be entitled to disclose the Confidential Information in terms of law or to their employees and advisors on the basis
that it will only be disclosed to those parties who need to have knowledge of the Confidential Information in order for the Parties to carry out their rights and obligations in terms of this Agreement and prior to such disclosure, such employees and
advisors have undertaken not to disclose the Confidential Information without the written consent of the Party that disclosed the Confidential Information. 

 

	11.11.2	 Neither of the Parties shall, subject to clause 11.11.3, issue any press release or any other public document or make any public statement in each case
relating to, connected with or arising out of the transaction which is the subject matter of this Agreement 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 after a period of 3 (THREE) Business Days has elapsed 

  
 Page 34.

	 	
following the delivery of such a request, it shall be assumed that approval has been granted. 

  

	11.11.3	To the extent that a Party which is a company listed on any stock exchange is required, in order to satisfy its obligations to such stock exchange or otherwise, to
give, make or publish any press release, announcement or document, such Party shall be entitled to do so provided it gives the other Party at least 3 (THREE) Business Days’ advance warning thereof together with drafts or a copy thereof.

  

	11.11.4	The obligations in respect of confidentiality in this clause 11 shall not apply to statements required in terms of annual financial statements or announcements required
by law. 

  

	11.12	Counterparts 

 This
Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. This Agreement may be executed and delivered by facsimile. 

 

							
	Signed at Illovo on 29th April 2004.	 		 	
			
	Witnesses:	 		 	
				
	1.	 	 

	 		 	 

		 		 		 	 for Witwatersrand Consolidated
Gold Resources (Pty)Limited
 (duly authorised hereto)

	2.	 	 

	 		 	

  
 Page 35.

 Signed at Johannesburg on 29th April 2004. 
  

							
	Witnesses:	 		 	
				
	 1.
	 	 

	 		 	 

		 		 		 	 for Armgold/Harmony Freegold
 Joint Venture Company Limited
 (duly authorised hereto)

	2.	 	 

	 		 	

  
 Page 36.

									
	SCHEDULE A
	
	NAME OF MINE OR PROPERTY
					
	 Farm
	  	 Portion

Description
	  	 Mineral

Right

Owner

(and % share)
	  	Mineral
Title
or 
Deed
Number	  	Extent
(size)
ha
					
	Welgelegen 382, Theunissen	  	Remaining Extent of Ptn 10(Ptn of 5)	  	Subject to 5% subscription rights in favour of Southern Holdings	  	833/2000	  	122.8350
					
	 Bloemhoek 509, Theunissen
	  	 Portion 1 (Elim)
  

Remaining extent
  

Remaining extent of Ptn 2(Nelspark)
	  	Subject to 5% subscription rights in favour of Southern Holdings	  	833/2000  
 633/2000
  
 833/2000
	  	201.2850  
 886.3079
  
 187.3068

					
	Biddulph 329, Ventersburg	  	The Farm	  	Subject to 5% subscription rights in favour of Lydex	  	833/2000	  	598.7216
					
	De Dam 27, Ventersburg	  	The Farm	  	Subject to 5% subscription rights in favour of Lydex	  	834/2000	  	185.0980
	  
 Hakkies 695, Ventersburg
	  	  
 Portion 6 (Ptn of Ptn 5)
	  	 Subject to 5% subscription rights in favour of Southern Holdings
	  	  
 833/2000
	  	  
 44.6110

	  	  
 Portion 7 (Ptn of Ptn 5)
	  	  	  
 833/2000
	  	  
 44.6110

	  	  
 Portion 3 (ptn of Ptn S)
	  	  	  
 833/2000
	  	  
 44.6110

	  	  
 Portion 9 (Ptn of Ptn 2)
	  	  	  
 833/2000
	  	  
 295.5033

	  	  
 Remaining Extent of Portion 3 (Engela)
	  	  	  
 833/2000
	  	  
 267.6662

	  	  
 Remaining Extent of Ptn 5 (Ptn of Ptn 3)
	  	  	  
 833/2000
	  	  
 133.8332

	  	  
 Remaining Extent of Ptn 2 (Kondowa)
	  	  	  
 83372000
	  	  
 220.2762

									
	SCHEDULE A
	
	NAME OF MINE OR PROPERTY
					
	 Farm
	  	 Portion

Description
	  	 Mineral

Right

Owner

(and % share)
	  	Mineral
Title
or 
Deed
Number	  	Extent
(size)
ha
					
	Hakkies 742, Ventersburg	  	Mineral Area 1	  	Subject to 5% subscription rights in favour of Southern Holdings	  	833/2000	  	554.8858
					
	Kriegerskraal 708, Ventersburg	  	 Portion 1
 Remaining Extent
	  	Subject to 5% subscription rights In favour of Lydex	  	834/2000
834/2000	  	707.9175
707.9175
					
	Le Roux 717, Ventersburg	  	Remaining Extent	  		  	834/2000	  	770.8788
					
	Palmietfontein 229, Winburg	  	The Farm	  	Subject to 5% subscription rights in favour of Lydex	  	834/2000	  	1761.4393
					
	Pedamar 402. Theunissen	  	The Farm	  	Subject to 5% subscription rights in favour of Southern Holdings and 5% subscription rights in Favour of Lydex	  	833/2000	  	85.6532
					
	Steenbokspruit 148, Ventersburg	  	The Farm	  		  	834/2000	  	328.9083
					
	Welgelagen 382, Theunissen	  	Portion 7 (Moedersgift)(a Ptn of Ptn 6)	  	Subject to 5% subscription rights in favour of Lydex	  	833/2000	  	163.8005
					
		  	Mineral Area 2(a Ptn of Mineral Area 1) on Portion 19	  	Subject to 5% subscription rights in favour of Lydex	  	833/2000	  	65.5537
					
		  	Remaining Extent of Ptn 2(De Rust)	  	Subject to 5% subscription rights in favour of Lydex	  	833/2000	  	245.7008
					
		  	Portion 11 (a Ptn of Ptn 5)	  	Subject to 5% subscription rights in favour of Southern Holdings	  	833/2000	  	122.8350
					
		  	Portion 12 (Optavit)(a Ptn of Ptn 5)	  	Subject to 5% subscription rights in favour of Southern Holdings	  	833/2000	  	122.8350
					
		  	Portion A (Bloekom)	  	Subject to 5% subscription rights in favour of Southern Holdings	  	833/2000	  	491.4015
					
		  	Remaining Extent of Ptn 5(Spoordraal)	  	Subject to 5% subscription rights in favour of Southern Holdings	  	833/2000	  	122.8350

													
	SCHEDULE A	  
	
	NAME OF MINE OR PROPERTY	  
					
	 Farm
	  	 Portion

Description
	  	 Mineral

Right

Owner

(and % share)
	  	Mineral
Title
or 
Deed
Number	 	  	Extent
(size)
ha	 
					
	Winterftoek Zuid 28, Ventersburg	  	The Farm	  		  	 	833/2000	  	  	 	1109.8913	  
					
	Weltevreden 443, Theunissen	  	Remaining Extent of Mineral Area 1	  	Subject to 5% subscription rights in favour of Southern Holdings	  	 	833/2000	  	  	 	1112.6303	  
	
	 MINERALS - ALL MINERALS WITH CERTAIN EXCEPTIONS
	   

					
	Welgelegen 382, Theunissen	  	Remaining extent of Ptn 6(Euodla)	  	Excludes precious stones - subject to 7.5% participation in favour of Duiker Exploration. Southern Holdings has 7.5% subscription rights in Anglogold’s remaining 92.5%
interest	  	 	833/2000	  	  	 	327.6009	  
					
	Welgelegen 382	  	 Portion of Portion 18
 Portion 21
 Portion 26

Remaining Extent
	  	Anglogold has a 27.5% participation right in respect of these minerals and Southern Holdings has a 7,5 subscription right in respect of Anglogold’s
interest.	  				  	 
 
 
 	0.8071
10.8396
2.9979
153.8077	  
  
  
  

 SCHEDULE B 
 Witwatersrand Consolidated Gold Resources - Shareholding Structure 
 

 

 ANNEXURE “8” 

WAIVER 
 We, the
undersigned, 
 [—] 

(registration number [—]) 
 (a limited liability public company duly incorporated in the Republic of South Africa (“Company”), herein represented by
                     in his capacity as Director of the Company: 
  

	1	waive and abandon all and any forms of economic and financial participation in the form of participation rights, subscription rights, net vendor consideration rights or
royalty rights which have accrued to the Company over the area covered by the Exploration Assets, Merriespruit South Area, Millo Area and Tweepan Area (all of which are defined in 2 below); 

 

	2	confirm that for purposes of 1 above: 

  

	2.1	“Exploration Assets” means the prospecting right held by Witwatersrand Consolidated Gold Resources Limited in and to a certain prospecting area, details of
which are attached hereto as Annexure “1”; 

  

	2.2	“the Merriespruit South Area” means the area hatched in red on the diagram annexed hereto marked Annexure “2” and having the coordinates
ABCDEFGHJKLM, but specifically excluding any area within 100 (one hundred) metres of any public road, railway, cemetery or residential or public area –; 

 

	2.3	“the Millo Area” means that area hatched in [—] on the diagram annexed hereto marked Annexure “3”;
and 

  

	2.4	“the Tweepan Area” means that area hatched in [—] on the diagram annexed hereto marked Annexure
“4”; 

  

	3	confirm that we shall sign whatever documentation is reasonably required of us to give effect to the waiver and abandonment referred to in 1 above; and

  

	4	confirm that the waiver and abandonment referred to in 1 above shall take effect on the date of discharge in full of the consideration payable in terms of the Option
Cancellation Agreement entered into amongst Armgold/Harmony Freegold Joint Venture (Proprietary) Limited, Witwatersrand Consolidated Gold Resources Limited and Harmony Gold Mining Company Limited on
[—] 2010 to which a draft of this waiver is Annexure “8”. 

  
 

 

 THUS DONE AND SIGNED AT
                     ON THIS      DAY OF              2010.

  

	
	  

	
	Director
	
	(who warrants his authority hereto)

  
 

 

  
 Page 4First Amended and Restated Operating Agreement

 Exhibit 10.1 

 
  

 
 THE INTERESTS REPRESENTED BY THIS AGREEMENT
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS. THEREFORE, SUCH INTERESTS CANNOT BE RESOLD, TRANSFERRED, PLEDGED, HYPOTHECATED, OR OTHERWISE DISPOSED OF AT ANY TIME
UNLESS THEY ARE REGISTERED UNDER SUCH ACT AND LAWS OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE, AND THE HOLDER COMPLIES WITH THE OTHER SUBSTANTIAL RESTRICTIONS ON TRANSFERABILITY SET FORTH IN THIS AGREEMENT. 

FIRST AMENDED AND RESTATED OPERATING AGREEMENT 
 OF 
 ROCK OHIO VENTURES LLC 

By and Between 
 ROCK OHIO VENTURES I LLC, 
 ROCK OHIO VENTURES II LLC 

and 

LAKES OHIO DEVELOPMENT LLC 
 Dated as of January 28, 2011 
  

 
  

 FIRST AMENDED AND RESTATED OPERATING AGREEMENT 

OF 
 ROCK
OHIO VENTURES LLC 
 This FIRST AMENDED AND RESTATED OPERATING AGREEMENT (this “Agreement”) is entered into and
shall be effective as of the OCT 18, 2011, by and among ROCK OHIO VENTURES I LLC, a Delaware limited liability company, ROCK OHIO VENTURES II LLC, a Delaware limited liability company, and LAKES OHIO DEVELOPMENT, LLC, a Minnesota limited liability
company, each as Members of ROCK OHIO VENTURES LLC (the “Company”). 
 RECITALS 

A. The Members and the Company executed an Operating Agreement as of October 29, 2009 (the “Original Operating
Agreement”); 
 B. The parties desire to modify the Original Operating Agreement to create a new class of senior equity
with the rights and preferences specified herein, to modify certain provisions regarding the redemption of Interests upon a Regulatory Redemption and to make such additional changes as reflected herein; 

NOW, THEREFORE, the Company and the Members hereby amend and restate the Original Operating Agreement in its entirety as follows:

 ARTICLE 1  
 ORGANIZATION OF THE COMPANY 
 1.1 Formation. The parties have
formed and intend hereby to operate the Company pursuant to the provisions of Chapter 18 of Title 6 of the Delaware Revised Statutes, as amended from time to time, or any corresponding provisions of succeeding law, (the “Act”) and in
accordance with the terms and conditions of this Agreement and the Company’s Certificate of Formation, as amended. The Members shall promptly make, execute and deliver all filings, disclosures, and other documentation that are required by
Applicable Law to enable the Company to comply with all requirements for its continued operation. 
 1.2 Name. The name
of the Company shall be “ROCK OHIO VENTURES LLC” and all business of the Company shall be conducted in such name or such other name or assumed names as the Manager shall from time to time approve. The Company shall be authorized to conduct
business in any state in which the Manager shall determine appropriate. 
 1.3 Purpose. The purpose or purposes for which
the Company is formed are to engage in any activity within the purposes for which a limited liability company may be formed under the Act as determined from time to time by the Manager, including, without limitation, directly or indirectly through
subsidiaries, third parties or otherwise, to acquire, own, develop, mortgage, encumber, hypothecate, lease, sell, maintain, improve, alter, remodel, expand, manage, and otherwise operate and deal with part or all of the Project, including

 
obtaining financing and refinancing for the above purposes, selling, exchanging, transferring, joint venturing or otherwise disposing of all or any part of the Project, and investing and
reinvesting any undistributed Company funds. No Member or Manager shall have any authority to hold itself out as an agent of another Member, and no Member, other than the Manager, shall have any authority to hold itself out as an agent of the
Company. The Company shall have any and all powers necessary or desirable to carry out the purposes and business of the Company, to the extent that the same may be lawfully exercised by limited liability companies under the Act. 

1.4 Intent. It is the intent of the Members that the Company be operated in a manner consistent with its treatment as a
“partnership” for federal income tax purposes. Without limitation to the foregoing sentence, it is also the intent of the Members that the Company not be operated, deemed or treated as a “partnership” for purposes of
Section 303 of the Federal Bankruptcy Code or any other non-tax purpose. No Member shall take action inconsistent with this express intent. 
 1.5 Term. The Company shall continue in perpetuity, unless the Company shall sooner be dissolved and its affairs wound up in accordance with the Act and this Agreement. 

1.6 Member Cooperation; Independent Activities. 
 (a) Member Cooperation. Except to the extent expressly provided to the contrary in this Agreement, each Member shall use reasonable efforts to cooperate with the requests of the Manager for actions
or efforts which the Manager deems necessary or desirable for the Project or the other business of the Company, including obtaining required licenses under applicable Gaming Law, and a Member shall be required to devote only such time to the affairs
of the Company as may be necessary for the performance of the foregoing. 
 (b) Independent Activities. Nothing,
including anything in the Company’s Certificate of Formation or this Agreement, shall: (1) limit the rights of a Manager, Member or any of their Affiliates, or any of then respective officers, directors, managers, employees, investors,
stockholders, partners and members (“Related Persons”) to serve other Persons in any capacity, to own interests in other businesses and undertakings, to pursue and engage in other investments, opportunities and activities, and to derive
and enjoy profits, compensation and other consideration in respect thereof, whether or not such services, interests, businesses, undertakings, investments, opportunities and activities (collectively, “Other Interests”) are similar to or
competitive with the business or assets of the Company, (2) afford any Member any right to share in the profits, compensation and other consideration derived from the Other Interests of any Manager, other Member or the Manager’s or other
Member’s Related Persons; (3) except as may be required to be disclosed under any Applicable Law, require any Member to disclose to any other Member or to the Company the existence, nature of, or any information relating to, any such Other
Interest, or impose any fiduciary or other obligation on any Member not to favor or advance such Other Interests over the interests of the Company or the Project; or (4) obligate any Member to first offer any such Other Interest to any other
Member or to the Company, or allow the other Member or the Company to participate therein. The Members, Manager and Company agree that the Company’s Members and Manager shall 

  
 2 

 
owe no fiduciary duties to the Company or other Members and shall not be required to devote any minimum time to the affairs of the Company. 

1.7 Transactions with Affiliates. 
 (a) To the extent permitted by Applicable Law and except as otherwise provided in this Agreement, the Company is hereby authorized to purchase property and services from, sell property and services to, or
otherwise deal with, the Manager and any Member, acting on its own behalf, or any Affiliate of the Manager or any Member, provided that any such purchase, sale, or other transaction shall be made on terms and conditions which are no less favorable
to the Company (including as to price, quality and payment terms) than if the Company had entered into the sale, purchase, or other transaction with an independent third party. 

(b) Subject to Section 1.7(a), the Company may advertise or otherwise promote the Project in conjunction or association with other
resorts, projects or properties owned by, managed by or otherwise affiliated with the Manager, a Member or their Affiliates or joint ventures (“Shared Promotion”). The negotiation of shared revenues resulting from or relating to, any such
Shared Promotion shall be within the discretion of the Manager. 
 1.8 Expenses of Members. Subject to Section 1.7,
the Manager may authorize compensation to Members, the Manager and their Affiliates for services rendered to the Company by such Manager, Member or Affiliate and may authorize reimbursement from the Company for actual “out of pocket”
expenses reasonably incurred by such Manager, Member or Affiliate in the furtherance of the Company’s business to the extent such expenses are approved by the Manager, in each case, upon the presentation of reasonable supporting documentation
of the amount and purpose of such expenses. The legal, accounting, due diligence and investigative fees and expenses relating to gaming licensure fees and costs associated with each Member’s individual licensure investigation under applicable
Gaming Law shall be borne by the Company to the extent approved by the Manager. 
 1.9 Registered Office and Agent for
Service of Process. The address of the registered office, and the name and address of the Company’s initial agent for service of process, are as set forth in the Certificate of Formation. Such office address and agent may be changed from
time to tune by the Manager. Notwithstanding the foregoing, the Manager shall cause an appropriate certificate of amendment to the Certificate of Formation to be duly filed upon any change of office address or agent that is or may become required by
Applicable Law. 
 1.10 Definitions. Each capitalized term used in this Agreement is defined in the Glossary of Defined
Terms attached hereto. All definitions shall also apply to the singular and plural form of the defined term, regardless of whether such term is defined in its singular or plural form. 

  
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 ARTICLE 2 
 CAPITAL CONTRIBUTIONS 
 2.1 Capital Contributions.

 (a) Capital Contribution Commitment. Under the Original Operating Agreement, each Member initially undertook and
became unconditionally obligated (and, to the extent such obligation has not been fulfilled, remains obligated) to contribute cash, the property described in Section 2.1(b) or such other assets as the Manager approves to the capital of the
Company in an aggregate amount equal to the Capital Contribution Commitment of such Member as set forth on Schedule 2.1(a) and, in exchange therefor, was (and has continued to be) allocated the Percentage Interest set forth opposite the
Member’s name. All Capital Contributions shall be made not later than the Capital Contribution Dates set by the Manager with respect thereto in accordance with Section 2.5. No Member shall be required to make Capital Contributions in
excess of such Member’s Capital Contribution Commitment, except as otherwise provided in Section 2.1(c) below. 
 (b)
Amounts Contributed. Members of the Company’s Members formed OH Ventures Cleveland LLC, a Delaware limited liability company (the “Cleveland LLC”), OH Ventures Cleveland Peninsula LLC, a Delaware limited liability company (the
“Cleveland Peninsula LLC”), and OH Ventures Cincinnati LLC, a Delaware limited liability company (the “Cincinnati LLC”, and together with the Cleveland LLC and the Cleveland Peninsula LLC, the “Casino Site LLCs”).
Members of the Company’s Members caused the Casino Site LLCs to acquire leases and/or options to purchase real estate in Cleveland and Cincinnati, Ohio. Members of the Company’s Members also spent money (1) to cause the Casino Site
LLCs to acquire such leases and options on real estate in Cleveland and Cincinnati, Ohio, and (2) in the furtherance of electoral approval of legislation directly related to the success of the Project, thereby enhancing the value of the leases
and options on real estate in Cleveland and Cincinnati, Ohio. Members of the Company’s Members contributed in kind their interests in the Casino Site LLCs to those Members listed on Schedule 2.1(b), which in turn have contributed them in kind
to the Company as part of such Member’s Capital Contribution to the Company. Each Member agrees that the Gross Asset Value with respect to the contribution of interests in the Casino Site LLCs to the Company by a Member was, at the time of
contribution, equal to the amount set forth on Schedule 2.1(b) with respect to the interest in the Casino Site LLCs contributed to the Company. 
 (c) Senior Equity Contributions. Each Member of the Company who has subscribed for Senior Equity Interests shall be unconditionally obligated to make a contribution in an aggregate amount equal to
the Senior Equity Capital Commitment of such Member as set forth on Schedule 2.1(c). Such contributions may be made either in cash or by such Member’s assumption of any obligation of the Company to pay cash or (in lieu of paying such cash)
issue an Interest to any other Person (in either of which cases, such Member’s Capital Account shall be credited in the amount of the agreed upon present value of such cash payments, as reflected in the applicable subscription agreement). All
Senior Equity Capital Contributions shall be made not later than the Capital Contribution Date in accordance with Section 2.5. No Member shall be required to make Senior Equity Capital Contributions in excess of such Member’s Senior Equity
Capital Commitment. 

  
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 2.2 Member Loans. Third Party Financing. The Manager may, on the Company’s
behalf, obtain any financing it deems necessary, at any time, to enable the Company to conduct its business and affairs or to develop, construct, acquire, complete and operate the Company’s Property and the Project in addition to the
Members’ Capital Contribution Commitments and Senior Equity Capital Commitments. The financing obtained as described in the immediately preceding sentence may include third-party debt financing obtained by the Company and the collateral for any
such financing may include the Property and the Project, among other collateral. Subject to Section 1.7, the Manager may request that one or more Members provide all or any part of such financing (“Member Loan(s)”) and may cause the
Company to enter into Member Loans. If any Member shall make any loan or loans to the Company, the amount of any such loan or advance shall not be treated as a contribution to the capital of the Company but shall be a debt due from the Company.

 2.3 Member Guaranties. No Member or Affiliate or Related Person of a Member shall be required to guaranty, or to make
or otherwise provide any other financial commitment or enhancement with respect to, any Debt of the Company. Subject to Section 1.7, the Manager may request that one or more Members provide or cause to be provided a guaranty or enhancement with
respect to any Debt of the Company (collectively, the “Member Guaranties”) if, in the Manager’s reasonable judgment, such Member Guaranties are necessary or desirable, and may cause the Company to obtain and enter into Member
Guaranties. A Member Guaranty of any Company Debt may be provided by a Member or an Affiliate thereof in any form, including the form of a guaranty, letter of credit, pledge of collateral or other credit enhancement facility. The Manager may, in its
discretion, agree to pay to Members providing Member Guaranties a guaranty fee. Such obligation of the Company shall be separate from and in addition to the guaranteeing Member’s right-to receive any other payment or distributable amount
hereunder. 
 2.4 Return of Capital. No interest shall accrue on any Capital Contributions and no Member shall have any
right to withdraw or to be repaid any Capital Contributions except as provided in this Agreement. 
 2.5 Funding Unpaid
Capital Contribution Commitment. With respect to any unpaid Capital Contribution Commitments pursuant to Section 2.1(a) or unpaid Senior Equity Capital Commitments pursuant to Section 2.1(c), (i) the Manager may set a date on
which all or a portion of such unpaid Capital Contributions are to be made (the “Capital Contribution Date”), (ii) the Company shall notify the Members not less than three (3) days prior to such Capital Contribution Date of the
Capital Contributions required to be made and the amounts of their respective required Capital Contributions, and (iii) such required Capital Contributions (exclusive of Senior Equity Capital Contributions) of the Members shall be proportionate
to such Members’ unpaid Capital Contribution Commitment then outstanding (and such required Senior Equity Capital Contributions of the Members shall be proportionate to their unpaid Senior Equity Capital Commitments under Section 2.1(c)
then outstanding). 
 2.6 Additional Capital Contributions. No Member shall be obligated to make any Capital
Contributions beyond such Member’s Capital Contribution Commitment and Senior Equity Capital Commitment. The Manager may cause the Company to offer and sell additional Interests in the Company on such terms and providing for such rights and

  
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obligations (including amendments to this Agreement to reflect such rights and obligations) as are approved by the Manager and by Members holding a majority of the Voting Interests Percentages;
provided that no approval by Members shall be required with respect to any offer or sale of additional Interests in the Company, or the terms, rights and obligations of such Interests and their offer and sale, if they do not require amendments to
ARTICLE 3, ARTICLE 4, or Section 11.2(b) (and, in such case, conforming amendments to Schedules 2.1(a), 2.1(b) and 2.1(c) also do not require approval). 
 2.7 Preemptive Rights. If the Company authorizes the issuance or sale of any Interests (except for issuances on or prior to the date of the Original Operating Agreement and except for issuances on
or before November 3, 2009 if LAKES OHIO DEVELOPMENT LLC is offered at least 10% of the total Interests issued), the Company shall first offer in writing (the “Preemptive Rights Notice”) to sell to LAKES OHIO DEVELOPMENT LLC or the
successor to its Interests 10% of such Interests. LAKES OHIO DEVELOPMENT LLC or the successor to its Interests shall be entitled to purchase up to 10% of such Interests being issued or sold by notifying the Company in writing within three business
days after the delivery of the Preemptive Rights Notice. The closing of such purchase shall take place on the first closing date of the same Interests offered to others. LAKES OHIO DEVELOPMENT LLC or the successor to its Interests shall be entitled
to purchase such Interests at the most favorable price and on the most favorable terms that such Interests are to be offered in such transaction: provided that notwithstanding the foregoing, in the event that the Company is issuing
more than one type or class of Interests in connection with such issuance, LAKES OHIO DEVELOPMENT LLC or the successor to its Interests shall be required to acquire all such types and classes of Interests in the same form as they are being offered
to others. Such Interests specified in the Preemptive Rights Notice that are not purchased by LAKES OHIO DEVELOPMENT LLC or the successor to its Interests pursuant to the terms of this Section 2.7 may be issued and sold by the Company (on terms
no less favorable to the Company than the terms offered in such Preemptive Rights Notice) within 90 days of the date of the Preemptive Rights Notice. Any Units not issued within such 90-day period will be subject to the provisions of this
Section 2.7 upon subsequent issuance. 
 2.8 Admission of Additional Members. Additional Members may be admitted to
the Company if, and only if, (1) any requirements of Section 2.6 are met, (2) such admission, and the terms and conditions of such admission, including, without limitation, any required Capital Contribution, are approved by the
Manager, subject to Section 1.7, and (3) such Person accepts, adopts and agrees to be bound by all of the terms and provisions of this Agreement, as it may then be amended; provided that the admission of new Members in connection with a
transfer of an Interest shall be governed by Section 9.1(b), rather than this Section 2.8. 
 ARTICLE 3

 ALLOCATIONS 
 3.1 Profits and Losses. After giving effect to the special allocations set forth in Section 3.2 below, and subject to Section 3.3(d) below, Profit or Loss of the Company for any Fiscal
Year shall be allocated among the Members in such proportions as will cause the Augmented Capital Account of each Member (determined, for this purpose, after giving effect to the allocation of such Profit or Loss) to equal, as nearly as possible,
the amount such Member 

  
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would receive if an amount equal to all Members’ Augmented Capital Accounts (determined, as set forth below, before the allocation of such profit or loss), increased by the amount of such
Profit or reduced by the amount of such Loss, were distributed to the Members in accordance with Section 4.1 below. For this purpose, the “Augmented Capital Account” of any Member shall mean such Member’s Capital Account,
determined after giving effect to all distributions during such Fiscal Year and all allocations other than allocations of Profit or Loss for such Fiscal Year, and increased by such Member’s “share of partnership minimum gain” (within
the meaning of Section 1.704-2(g) of the Regulations) and “share of partner nonrecourse debt minimum gain” (within the meaning of Section 1.704-2(i)(5) of the Regulations) as of the end of such Fiscal Year. 

3.2 Special Allocations. The following special allocations shall be made for income tax purposes in the following order:

 (a) Minimum Gain Chargeback. Except as otherwise provided in Section 1.704-2(f) of the Regulations,
notwithstanding any other provision of this ARTICLE 3, if there is a net decrease in Company Minimum Gain during any Fiscal Year, each Member shall be specially allocated items of Company gross income and gain for such Fiscal Year (and, if
necessary, subsequent Fiscal Years) in an amount equal to such Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Regulations Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made
in proportion to the respective amounts required to be allocated to each Member pursuant thereto. The items to be so allocated shall be determined in accordance with Sections 1.704-2(f)(6) and 1.704-2(j)(2) of the Regulations. This
Section 3.2(a) is intended to comply with the minimum gain chargeback requirements in the Regulations and shall be interpreted consistently therewith. 
 (b) Member Minimum Gain Chargeback. Notwithstanding any other provision of this Agreement except Section 3.2(a), if there is a net decrease in Member Minimum Gain attributable to Member
Nonrecourse Debt during any Fiscal Year, each Member who has a share of the Member Minimum Gain attributable to such Member Nonrecourse Debt shall be specially allocated items of Company income and gain for such year (and, if necessary, subsequent
years) in an amount equal to such Member’s share of the net decrease in Member Minimum Gain attributable to such Member Nonrecourse Debt. The items to be so allocated shall be determined in accordance with Regulation
Section 1.704-2(j)(2)(ii). Any Member’s share of the net decrease in Member Minimum Gain shall be determined in accordance with Regulation Section 1.704-2(i)(5). This Section is intended to comply with the minimum gain chargeback
requirements in the Regulations and shall be interpreted consistently therewith. 
 (c) Nonrecourse Deductions.
Nonrecourse deductions for any Fiscal Year shall be allocated among the Members in the proportions specified in Section 4.1(f) below. For purposes of this Section, “nonrecourse deductions” shall have the meaning set forth in
Section 1.704-2(b)(l) of the Regulations. The amount of nonrecourse deductions for a Fiscal Year shall equal the excess, if any, of the net increase, if any, in the amount of Company Minimum Gam during that Fiscal Year over the aggregate amount
of any distributions during that Fiscal Year of proceeds of a Nonrecourse Liability that are allocable to an increase in 

  
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Company Minimum Gain, determined according to the provisions of Regulation Section 1.704-2(d). 
 (d) Member Nonrecourse Deductions. Any Member Nonrecourse Deductions for any Fiscal Year shall be specially allocated to the Member who bears economic risk of loss with respect to the Member
Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with Regulation Section 1.704-2(i). The amount of Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for a Fiscal Year equals the
excess, if any, of the net increase, if any, in the amount of Member Minimum Gain attributable to such Member Nonrecourse Debt during that Fiscal Year over the aggregate amount of any distributions during that Fiscal Year to the Member that bears
the economic risk of loss for such Member Nonrecourse Debt to the extent such distributions are from the proceeds of such Member Nonrecourse Debt and are allocable to an increase in Member Minimum Gain attributable to such Member Nonrecourse Debt,
determined in accordance with Section 1.704-2(i)(l). 
 (e) Qualified Income Offset. In the event any Member
unexpectedly receives any adjustment, allocation or distribution described in Treasury Regulation paragraphs (4), (5) or (6) of Section 1.704-1(b)(2)(ii)(d), items of Company gross income and gain shall be specially allocated to the
Member in an amount and manner sufficient to eliminate, to the extent required by the Treasury Regulations, the Adjusted Capital Account Deficit of that Member as quickly as possible. 

3.3 Other Allocation Rules. 
 (a) The Members are aware of the income tax and economic consequences of the allocations made by this ARTICLE 3 and hereby agree to be bound by the provisions of this ARTICLE 3 in reporting their shares
of Company income and loss for income tax purposes. 
 (b) For purposes of determining the Profits, Losses or any other items
allocable to any period, Profits, Losses and any such other items shall be determined on a daily, monthly, or other basis, as determined in good faith by the Manager using any permissible method under Code Section 706 and the Regulations
thereunder. 
 (c) To the extent permitted by Section 1.704-2(h)(3) of the Regulations, the Company shall elect not to
treat distributions as having been made from the proceeds of a Nonrecourse Liability or a Member Nonrecourse Debt. 
 (d)
Notwithstanding any other provisions in this Agreement, Losses (or items of deduction) shall not be allocated to a Member to the extent that the Member has or would have, as a result of such allocations, an Adjusted Capital Account Deficit.

 3.4 Tax Allocations: Code Section 704(c). In accordance with Code Section 704(c) and the Regulations
thereunder, income, gain, loss, and deduction with respect to any property contributed to the capital of the Company shall, solely for tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of
such property to the Company for federal income tax purposes and its initial Gross Asset Value. 

  
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 In the event the Gross Asset Value of any Company asset is adjusted pursuant to the
definition of Gross Asset Value, subsequent allocations of income, gain, loss, and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset
Value in the same manner as under Code Section 704(c) and the Regulations thereunder. 
 Any elections or other decisions
relating to such allocations shall be made by the Manager in any manner that reasonably reflects the purpose and intention of this Agreement. 
 ARTICLE 4 
 DISTRIBUTIONS 

4.1 Distributions and Priority. To the extent the Manager determines the Company has sufficient cash and to the extent permitted
by the Act and any lending agreements to which the Company or any of its subsidiaries is a party, the Company may make distributions to its Members in respect of their Interests at any time and from time to time as determined by the Manager in its
sole discretion. Subject to Sections 4.2 and 4.3, distributions shall be made in the following order and priority: 
 (a) First,
to the Members holding Senior Equity Interests (in the proportion that each such Member’s Unpaid Senior Equity Return bears to the aggregate Unpaid Senior Equity Return) until such Members’ Senior Equity Return has been paid in full.

 (b) Second, to the Members holding Senior Equity Interests (in the proportion that each Member’s Unreturned Senior
Equity Capital Contributions bears to the aggregate of all Members’ Unreturned Senior Equity Capital Contributions) until the amount of all Members’ Unreturned Senior Equity Capital Contributions is zero. 

(c) Third, to the Members (in the proportion that each Member’s Unreturned Capital Contributions bears to the aggregate of all
Members’ Unreturned Capital Contributions) until the amount of all Members’ Unreturned Capital Contributions is zero. 

(d) Fourth, to ROCK OHIO VENTURES I LLC and LAKES OHIO DEVELOPMENT LLC (in the proportion that each such Member’s Unpaid Additional
Preferred Return bears to the aggregate Unpaid Additional Preferred Return) until the Additional Preferred Return has been paid in full. 
 (e) Fifth, to the Members (in the proportion that each such Member’s Unpaid Preferred Return bears to the aggregate of all such Members’ Unpaid Preferred Return) until the Preferred Return of
all such Members has been paid in full. 
 (f) Thereafter, (1) thirty-eight percent (38%) to ROCK OHIO VENTURES I LLC,
(2) two percent (2%) to LAKES OHIO DEVELOPMENT, LLC, (3) twenty-five percent (25%) to the Members holding Senior Equity Interests in proportion to their respect Senior Equity Interests Percentages and (4) thirty-five percent
(35%) pro-rata to all Members in proportion to their respective Percentage Interests. 

  
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 4.2 Tax Distributions. Notwithstanding the priority of distributions in
Section 4.1, the Company shall, consistent with any restrictions which may be imposed by any creditor or under any contract of the Company or any of its subsidiaries or by applicable law, make distributions (whether pursuant to this
Section 4.2 or otherwise) to each Member (1) by April 15 after the end of each taxable year of the Company, in an amount equal to the Year End Tax Distribution, if any, and (2) at such times and in such amounts so that each
Member will be able to make timely estimated and final tax payments, if any, of all federal and state income taxes attributable to the portion of the Company’s taxable income, if any, allocated to such Member pursuant to this Agreement and the
Code, which distributions shall be credited against the Year End Tax Distribution to be received by the Members; provided that each periodic distribution will not exceed the sum of the State Tax Amount plus the Federal Tax Amount, calculated as
though the Taxable Income were equal to the Company’s estimated taxable income from the beginning of the Company’s taxable year through the date of such periodic distribution, less prior periodic distributions for taxes with respect to
such taxable year of the Company. 
 Distributions under this Section 4.2 for any Fiscal Year shall be heated as
distributions made pursuant to Section 4.1; provided that any distribution to a Member pursuant to this Section 4.2 that exceeds the amount that would have been distributed to a Member had the amount been distributed pursuant to
Section 4.1 shall be treated as an advance distribution under Section 4.1 and shall be offset against subsequent distributions such Member would otherwise be entitled to receive pursuant to Section 4.1. Nothing in this
Section 4.2 shall be construed to restrict any right of the Manager or the Company to declare or make any distribution in addition to those contemplated hereby. 
 The “Year End Tax Distribution” means, with respect to any Member, the sum of the “State Tax Amount” and the “Federal Tax Amount” with respect to such Member. “State Tax
Amount” means, with respect to any Member, the product of (1) the Company’s taxable income, if any, for the applicable year (determined under the Code) and allocated to such Member pursuant to ARTICLE 3 (“Taxable Income”),
multiplied by (2) the Ohio state income tax rate for individuals then in effect. “Federal Tax Amount” means, with respect to any Member, the product of (1) the amount by which the Taxable Income allocated to such Member exceeds
the State Tax Amount, multiplied by (2) the highest marginal federal tax rate for individuals then in effect under the Code. 
 4.3 Distributions Only From Company Assets. The Members shall look solely to the assets of the Company for any distributions, whether liquidating distributions or otherwise. If the assets of the
Company remaining after the payment or discharge, or the provision for payment or discharge, of the debts, obligations, and other liabilities of the Company are insufficient to make any distributions, no Member shall have any recourse against the
separate assets of any other Member. 
 ARTICLE 5 
 MANAGEMENT 
 5.1 Designation and Authority of Manager. ROCK
OHIO VENTURES I LLC shall be the initial Manager, and ROCK OHIO VENTURES I LLC may only be removed as 

  
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the Manager (and any vacancy in the office of Manager may only be filled) by Members holding a majority of the Voting Interests Percentage. The Manager may resign at any time, and the Manager
shall resign as Manager if it is finally determined not to be qualified under applicable Gaming Law to serve as Manager and the Manager is unable to cure such lack of qualification within a reasonable period of time. Neither the resignation or
removal of a Manager shall affect its Interest, and following any such event, it shall continue to be a Member with all rights and responsibilities as such. 
 Except for situations in which the approval of the Members is required by the terms of this Agreement or the Act, (i) the Manager shall conduct, direct and exercise full control over all activities
of the Company, (ii) all management powers over the business and affairs of the Company shall be vested in the Manager, and (iii) the Manager shall have the power to bind or take any action on behalf of the Company, or to exercise in its
sole discretion any rights and powers (including the rights and powers to take certain actions, give or withhold certain consents or approvals, or make certain determinations, opinions, judgments, or other decisions) granted to the Company under
this Agreement, or any other agreement, instrument, or other document to which the Company is a party or by virtue of its holding the equity interests of any direct or indirect subsidiary of the Company. Unless delegated such power in accordance
with Section 5.3, no Member, except a Member who is a Manager and acting in such capacity, shall (1) participate in the management of the Company, (2) hold himself out to any third party as an agent of the Company, (3) have any
authority to bind the Company or act for the Company in any matter, or (4) shall take any action on behalf of the Company without the approval or authorization of the Manager. In addition to any power of the Manager granted under this
Agreement, the Manager shall have all of the powers and authority equivalent to those afforded to a board of directors of a corporation organized and existing under the laws of the State of Delaware. 

5.2 Limitation of Liability. The Manager shall not be liable to the Company or any Member for any act or omission of the Manager
in its capacity as the manager of the Company taken in good faith, to the maximum extent permitted by applicable law, except for the Manager’s willful misconduct or knowing violation of law. The Manager may exercise any of the powers granted to
it by this Agreement and perform any of the duties imposed upon it under this Agreement either directly or by or through its agents, and neither the Manager nor any of its Affiliates shall be responsible for any misconduct or negligence on the part
of any such agent appointed by the Manager (so long as such agent was selected in good faith). The Manager shall be entitled to rely upon the advice of legal counsel, independent public accountants and other experts, including financial advisors,
and any act of or failure to act by the Manager in good faith reliance on such advice shall in no event subject the Manager to liability to the Company or any Member. 
 5.3 Delegation of Authority. The Manager may, from time to time, delegate to one or more Persons (including any officer of the Company) such authority and duties as the Manager may deem advisable.
Such delegation may include the appointment of officers, which such titles, powers and duties as are determined by the Manager, including day to day management of the Company’s operations. Any delegation pursuant to this Section 5.3 may be
revoked at any time by the Manager in its sole discretion and any officer appointed by the Manager shall serve at the pleasure of the Manager and may be removed by the Manager at 

  
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any time with or without cause. An officer shall perform his or her duties as an officer in good faith and, except as otherwise expressly provided in this Agreement, in a manner he or she
reasonably believes to be in the best interest of the Company. 
 5.4 Management Fee. The Company may enter into one or
more technical, licensing and management agreements of (collectively, as each may be executed, amended, supplemented or otherwise modified from time to time, the “Management Agreements”) setting forth certain management and technical
services to be supplied by to the Company or its subsidiaries by third parties (or, subject to Section 1.7, one or more Members or the Manager), which agreements may include the licensing of certain trademarks and other intellectual property to
the Company. 
 ARTICLE 6 
 INDEMNIFICATION 
 6.1 Indemnification. The Company shall
indemnify any Member, Manager or officer, and may indemnify any other Person, to the fullest extent permitted under the Act, as the same now exists or may later be amended, substituted or replaced (but, in case of any such amendment, substitution or
replacement only to the extent that such amendment, substitution or replacement permits the Company to provide broader indemnification rights than the Company is providing immediately before such amendment), against all expenses, liabilities and
losses (including, without limitation, attorneys’ fees, judgments, fines, excise taxes, amounts paid in settlement and penalties) incurred or suffered by such Person (or one or more of such Person’s Affiliates) by reason of the fact that
such Person is or was a Member, Manager or officer of the Company (and in the sole discretion of the Manager, any Person that is or was serving as an employee or agent of the Company or is or was serving at the request of the Company as a
representative, officer, director, member, manager, principal, employee or agent of another partnership, corporation, joint venture, limited liability company, trust or other enterprise); provided that, (unless the Manager otherwise consents) no
Person shall be indemnified for any expenses, liabilities and loses suffered that are attributable to such Person’s or such Person’s Affiliates’ bad faith, willful misconduct or knowing violation of law. Expenses, including
attorneys’ fees, incurred by a Person entitled to indemnification under this Section 6.1 in defending a proceeding shall be paid by the Company in advance of the final disposition of such proceeding, including any appeal therefrom, upon
receipt of an undertaking satisfactory to the Manager by or on behalf of such Person to repay such amount if it shall ultimately be determined that such Person is not entitled to be indemnified by the Company. 

6.2 Company Obligation Only. Any indemnity by the Company under this ARTICLE 6 shall be provided out of and to the extent of
Company assets only and no Member shall have personal liability on account of such indemnification obligations of the Company or shall be required to make Capital Contributions to help satisfy such indemnification obligations of the Company.

 6.3 Non-Exclusive Rights. The right to indemnification and the advancement of expenses conferred in this ARTICLE 6
shall not be exclusive of any other right which any Person may have or later acquire under any statute, agreement, determination of the Manager or otherwise. The Company (acting with the approval of its Manager) may purchase

  
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and maintain insurance or make other financial arrangements on behalf of any Person who is or was a Manager, Member, officer, employee or agent of the Company, or at the request of the Company is
or was serving as a manager, director, officer, employee or agent of another limited-liability company, corporation, partnership, joint venture, trust or other enterprise, for any liability asserted against such Person and liability and expenses
incurred by such Person in such Person’s capacity as a Manager, Member, officer, employee or agent, or arising out of such Person’s status as such, whether or not the Company has the authority to indemnify such Person against such
liability and expenses. The decision of the Company as to the propriety of the terms and conditions of any insurance or other financial arrangement made pursuant to the immediately-preceding sentence hereof and the Company’s choice of Person to
provide such insurance or other financial arrangement is and shall be conclusive, and such insurance or other financial arrangement is not and shall not be void or voidable and does not and shall not subject any Manager or Member of the Company
approving such insurance or other financial arrangement to personal liability for such Person’s action, even if such Person approving such insurance or other financial arrangement is a beneficiary of such approved insurance or other financial
arrangement 
 ARTICLE 7 
 REPRESENTATIONS, WARRANTIES AND COVENANTS 
 7.1 In General.
As of the date hereof, each of the Members hereby makes each of the representations and warranties applicable to such Member as set forth in Section 7.2, and such warranties and representations shall survive the execution of this Agreement.

 7.2 Investigation. Each Member hereby represents and warrants that each Member is acquiring its Interest based upon
its own investigation, and the exercise by such Member of its rights and the performance of its obligations under this Agreement will be based upon its own investigation, analysis and expertise. Each Member’s acquisition of its Interest is
being made for its own account for investment, and not with a view to the sale or distribution thereof. The Interest acquired by a Member pursuant to this Agreement has not been, and when acquired by the Members will not be, registered under the
Securities Act of 1933 (as amended, supplemented or otherwise modified from time to time, and together with the regulations promulgated thereunder, the “Securities Act”) or qualified under any “blue sky” or other securities law
of any State of the United States, by reason of exemptions from such registration provisions, which exemptions depend upon, among other things, the good faith nature of the investment intent and accuracy of the Members’ representations as
expressed herein. Each Member understands that its Interest must be held indefinitely unless subsequently registered under the Securities Act or unless an exemption from registration is otherwise available. Each Member further understands that at
the time he wishes to Transfer any portion of its Interest, there may be no public or other market upon which to make a Transfer, and that, even if such a public or other market then exists, a Member may be precluded from Transferring any portion of
its Interest under Securities Act “Rule 144” or under this Agreement for various reasons. Each Member acknowledges possessing such general knowledge and experience in financial and business matters that it is capable of evaluating the
merits and risks of the acquisition of its Interest and, by reason of such financial and business experience, the Member has the capacity to protect the Member’s own interests in connection with such acquisition of its Interest. Each Member
also acknowledges 

  
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being financially able to bear the economic risk of its investment, including the total loss thereof. 
 ARTICLE 8 
 ACCOUNTING, BOOKS AND RECORDS 

8.1 Accounting, Books and Records. The Company shall keep, or cause to be kept, appropriate books and records with respect to the
Company’s business, including all books and records necessary to provide the information required pursuant to Sections 8.2 and 8.3 or pursuant to applicable laws. All matters concerning (i) the determination of the relative amount of
allocations and distributions among the Members, and (ii) accounting procedures and determinations, and other determinations not specifically and expressly provided for by the terms of this Agreement, shall be determined by the Manager in its
sole discretion, whose determination shall be final and conclusive as to all of the Members absent manifest error. 
 8.2
Reports. Insofar as practicable, the Company shall, within ninety (90) days after the end of each Fiscal Year and within forty-five (45) days after the end of each of the first three (3) fiscal quarters, furnish each Member
with a copy of the balance sheet of the Company as of the last day of the applicable period, a statement of income or loss for the Company for such period, and a statement of the Company’s cash flows for such period. Annual statements shall be
audited by the Company’s accountants, if (and only if) the Manager so elects. 
 8.3 Tax Returns; Information. The
Company shall (i) arrange for the preparation and timely filing of all income and other tax returns of the Company, (ii) provide the Members with estimates of amounts necessary to prepare tax returns for the Members for each Fiscal Year in
so far as such returns pertain to the Company’s income for such Fiscal Year, by April 1 of the next succeeding year (insofar as practicable); provided, that a filing shall be deemed timely if made within the time permitted by
extensions therefor obtained from the appropriate tax authority, and (iii) provide to the each Member a K-1 form for each Fiscal Year. 
 8.4 Special Basis Adjustment. In connection with any Transfer of a Company interest, the Company shall, if the transferor or the transferee so requests and the Manager agrees, elect, at the time
and in the manner provided in Regulations Section 1.754-1(b), to adjust the basis of the Company’s property in the manner provided in Section 743(b) of the Code, and such transferee shall pay all costs incurred by the Company in
connection therewith, including, without limitation, reasonable attorneys’ and accountants’ fees. 
 8.5 Tax
Matters Member. The Manager, or any Member designated by the Manager, is specially authorized and appointed to act as the Tax Matters Partners under the Code and in any similar capacity under state or local law. The Company shall, in accordance
with ARTICLE 6, hold the Tax Matters Partner harmless from any action taken as such. 
 ARTICLE 9 

TRANSFERS OF INTERESTS 
 9.1 Restrictions on Transfers. No Member shall directly or indirectly Transfer all or any portion of its Interest unless (i) the Manager is satisfied that the Transfer is either registered

  
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under, or exempt from, the registration requirements of applicable federal and state securities laws, and (ii) either (a) the Manager consents to such Transfer in advance in writing,
which consent may be withheld by the Manager in its sole and absolute discretion, (b) the Transfer is pursuant to Section 9.2, (c) the Transfer is pursuant to Section 9.3, or (d) the Transfer is pursuant to Section 9.4
(such Transfer, a “Permitted Transfer”); provided that none of the foregoing shall prohibit, or restrict in any way, any sale of Lakes Entertainment, Inc. (whether by sale of stock, merger, consolidation, share exchange or sale of all or
substantially all of its assets) or any transfer of any equity interests in Lakes Entertainment, Inc. Any Transfer or attempted Transfer by any Member in violation of the preceding sentence shall be null and void and of no force or effect whatever.
Each Member hereby acknowledges the reasonableness of the restrictions on Transfer imposed by this Agreement in view of the Company’s purposes and the relationship of the Members. Accordingly, the restrictions on Transfer contained herein shall
be specifically enforceable. Each Member hereby further agrees to hold the Company, the Manager and each other Member wholly and completely harmless from any cost, liability, or damage (including liabilities for income and other taxes and costs of
enforcing this indemnity) incurred by any of such indemnified Persons as a result of a Transfer or an attempted Transfer in violation of this Agreement. 
 (a) Conditions to Permitted Transfers. A Permitted Transfer otherwise permitted under this Agreement shall not be a Permitted Transfer, and any attempted Transfer of a Member’s Interest shall
be null and void and of no force or effect whatever, unless and until the following conditions are satisfied: 
 (i) The
transferor and transferee shall execute such documents and instruments of conveyance and assumption as may be necessary or appropriate in the opinion of the Manager to effect such Transfer and to confirm the transferee’s agreement to be bound
by the provisions of this Agreement and assumption of all obligations of the transferor Member with respect to the Interest being transferred. 
 (ii) The transferor and transferee shall furnish the Company with the transferee’s taxpayer identification number, sufficient information to determine the transferee’s initial tax basis in the
Interest transferred, and any other information reasonably necessary to permit the Company to file all required federal and state tax returns and other legally required information statements or returns. Without limiting the generality of the
foregoing, the Company shall not be required to make any distribution otherwise provided for in this Agreement with respect to any transferred Interest until it has received such information. 

(iii) The Transfer and Permitted Transferee have been approved by the Ohio Gaming Commission, if required by applicable Gaming Law, and
any other governmental or regulatory agency or body having jurisdiction over the Company and whose approval is required under Applicable Law. 
 (iv) A Member making a Permitted Transfer and the transferee shall pay all reasonable costs and expenses incurred by the Company in connection with such Transfer. 

  
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 (b) Admission of Permitted Transferee as a Member. A Permitted Transferee of an
Interest shall be admitted as a Member in the Company only upon the written approval of the Manager. The rights of a Permitted Transferee who is not admitted as a Member shall be limited to the right to receive allocations and distributions from the
Company with respect to the Interest transferred, as provided by this Agreement. The transferee of such Interest shall not be a Member, or have any rights of a Member, with respect to such Interest, unless and until such transferee is admitted as a
Member in accordance with this Agreement. 
 (c) Effect of Permitted Transfer on Company. The Members intend that the
Permitted Transfer of an interest in the Company shall not cause the dissolution of the Company. 
 9.2 Approved Sale. If
the Manager approves a sale of over 50% of the assets of the Company or of all of the subsidiaries of the Company or of equity with over 50% of the voting power of the Company or 50% of the voting power of all subsidiaries of the Company (whether by
merger, consolidation, equity exchange or sale or transfer of equity securities) (as so approved, an “Approved Sale”), (i) each Member shall vote for, consent to and raise no objections against, and waive any dissenters or appraisal
rights with respect to, such Approved Sale, and the Company and each Member shall consummate such Approved Sale on the terms and conditions so approved and (ii) the Company, the Manager, each subsidiary and their respective members, boards of
directors or managers and each Member shall take all necessary or desirable actions in connection with the consummation of the Approved Sale as requested by the Manager, including, without limitation, transferring a pro rata portion of such
Member’s Interests required to consummate such transaction. Notwithstanding the foregoing, no Member shall be obligated in connection with such Approved Sale to indemnify the prospective transferee or its Affiliates with respect to an amount in
excess of the aggregate proceeds paid to such Member in connection with such Approved Sale (other than as a result of a breach of its representations and warranties with respect to authorization and ownership of Interests (and any representations
and warranties, if required to be made, will be made by all Members and will be uniform in all material respects), as to which no limitation shall apply). The Manager shall use commercially reasonable efforts to minimize the representations and
warranties made by the Members (in their capacity as Members) in connection with any Approved Sale. 
 9.3 Tag Along
Rights. If ROCK OHIO VENTURES I LLC or the affiliated successor to its Interests proposes to sell, in one transaction or a series of related transactions, all or substantially all of its Interests to an unaffiliated person or entity, ROCK OHIO
VENTURES I LLC or the affiliated successor to its Interests shall use its best efforts to cause the buyer of such Interests to offer to purchase all of the Interests owned by LAKES OHIO DEVELOPMENT LLC or the successor to its Interests on the same
terms and conditions, received by ROCK OHIO VENTURES I LLC or the affiliated successor to its Interests for its Interests. If LAKES OHIO DEVELOPMENT LLC desires to sell all of its Interests in such transaction and the transferee does not agree to
purchase all of the Interests owned by LAKES OHIO DEVELOPMENT LLC in such transaction, ROCK OHIO VENTURES I LLC may not, and shall not, sell any of its Interests in such transaction. The transferee must accept, approve, adopt, and agree in writing
to comply with, and be bound by, all of the terms and conditions of this Agreement as if such transferee were the Member whose interests it purchased, and such transferee shall be treated for 

  
 16 

 
all purposes of this Agreement as such Member. The aggregate net proceeds in any such transaction pursuant to this Section 9.3 shall be allocated among the Members in the order of priority
specified in Section 4.1. 
 9.4 Redemption of Interests Upon Specified Events. If at any time during the term (as
defined in Section 1.5), (a) a Member fails to comply with any provision of this Agreement other than a failure to satisfy a capital call pursuant to Section 2.5 with respect to a Senior Equity Capital Commitment (the redemption
pursuant to the event described in clause (a) is referred to as a “Breach Redemption”), (b) a Member fails to comply with a capital call pursuant to Section 2.5 with respect to a Senior Equity Capital Commitment (the
redemption pursuant to the event described in clause (b) is referred to as a “Senior Capital Call Breach Redemption”, (c)(i) the ownership of any Interest by any transferee of a Member, or owner or Affiliate of a transferee of a
Member, poses a material risk of a potential adverse gaming regulatory consequence to the Company, an Affiliate, the Joint Venture, Caesars or its Affiliates, a Member or any direct or indirect owner of any Member (the redemption pursuant to the
event described in clause (c)(i), a “Transferee Regulatory Redemption”), or (ii) LAKES OHIO DEVELOPMENT LLC or any other Person admitted as a member of LAKES OHIO DEVELOPMENT LLC or their owners, including as a transferee, poses a
material risk of a potential adverse gaming regulatory consequence to the Company, an Affiliate, the Joint Venture, Caesars or its Affiliates, a Member or any direct or indirect owner of any Member (the redemptions pursuant to the events described
in clause (c), including the Transferee Regulatory Redemption, are referred to as a “Regulatory Redemption”, and collectively the events described in clauses (a), (b) and (c) are referred to as the “Buy-Sell Events,”
and the Interests of the Member or transferee causing the Buy-Sell Event are referred to as the “Buy-Sell Interest”) then, at any time following the expiration of the Cure Period (as defined below) with respect to such occurrence, the
Company shall have the right (and in connection with a Transferee Regulatory Redemption, an obligation) to purchase all, but not less than all, of the Buy-Sell Interest that is subject to the Buy-Sell Event on the terms and conditions, and subject
to the provisions, set forth in this Section 9.4. A Senior Capital Call Breach Redemption, in the absence of any other Breach Redemption, shall allow the Company the right to purchase only the Senior Equity Interests of such Member. Once given,
a Demand Notice may be revoked or withdrawn at any time prior to the closing of such sale in the sole and absolute discretion of the Manager. 
 (a) Cure. There shall be no right to purchase an Interest if the occurrence of a Buy-Sell Event shall have been entirely cured (including the elimination of any potential adverse gaming regulatory
consequences to the Company, any Affiliate, the Joint Venture, Caesars or its Affiliates, a Member or any direct or indirect owner of any Member) prior to the expiration of the Cure Period corresponding thereto. “Cure Period” means, with
respect to any Buy-Sell Event, the period beginning on (but not including) the date of notice of the occurrence of a Buy-Sell Event by the Company to the Member (a “Demand Notice”) and ending either sixty days thereafter or on such earlier
date as the Company shall notify the Member is necessary to avoid a material adverse gaming regulatory consequence affecting the Company or any Affiliate, including a material adverse action by any governmental gaming regulatory authority in any
jurisdiction. 
 (b) Purchase Price. The purchase price for a sale under this Section 9.4 shall be as follows (the
“Purchase Price”): 

  
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 (i) Breach Redemption. For a sale in connection with a Breach Redemption, the
positive balance, if any, of the Member’s Capital Account at the time of the closing of the sale in accordance with the terms hereof. 
 (ii) Senior Capital Call Breach Redemption. For a sale in connection with a Senior Capital Call Breach Redemption, the aggregate amount of the Senior Equity Capital Contributions made to the
Company prior to the date of the breach minus any distributions received by the applicable Member or transferor (and any predecessors) under Section 4.1 at the time the applicable Cure Period has expired which Purchase Price shall be paid
concurrently with distributions under Section 4.1(b) and such Member’s Senior Equity Interests shall be deemed to have been transferred as of the date that any applicable Cure Period has expired and the Member shall no longer have any
rights as a holder of Senior Equity Interests notwithstanding that payment of the Purchase Price pursuant to Section 9.4(d) does not occur until a later date. 
 (iii) Regulatory Redemption. For a sale in connection with a Regulatory Redemption of a Member (x) the fair market value of the Interests being sold (other than any Senior Equity Interests of
such Member), as determined by a business appraiser experienced in valuing casinos selected by agreement of the Company and the selling Investor Member; provided that if they do not agree on an appraiser within 30 days after the Demand Notice,
either party may commence an arbitration proceeding pursuant to Section 12.12 to select an appraiser plus (y) the aggregate Senior Equity Capital Contributions made to the Company by the applicable Member prior to the date of the closing
of the sale in accordance with the terms hereof minus any distributions received by the applicable Member or transferor (and any predecessors) under Section 4.1 at the time of the closing of the sale in accordance with the terms hereof.

 If, as to a matter to which this Section 9.4(b)(iii) applies, the Gaming Authority with jurisdiction over the Company, any Member,
Affiliate, the Joint Venture or Caesars or its Affiliates requires the implementation of another mechanism or terms for any such redemption and/or repayment that are inconsistent with this Section, the terms required by such applicable Gaming
Authority will control and the foregoing provisions will be deemed to be modified in a manner consistent with such requirements. The Company can assign its rights with respect to a Regulatory Redemption to permit such assignee to exercise this
redemption right on the terms and conditions provided for in this Section. 
 (c) Obligation to Sell. Upon the occurrence
of a Buy-Sell Event, receipt of a Demand Notice, and failure to cure within the Cure Period, the Member shall then be obligated to sell its Interest for the Purchase Price to the Company or any other Person designated by the Company in accordance
with this Section 9.4. 
 (d) Closing. 
 (i) Terms of Closing. The selling Member shall meet with the Company and exchange documents and pay any amounts due, and otherwise do all things necessary to conclude the transaction set forth
herein at the closing of such purchase (the “Closing”). The Closing shall occur at the Company’s offices at 9:00 a.m., on the first 

  
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Wednesday after the tenth (10th) day after the end of the Cure Period unless that day is a national or state holiday and, in that event, on the next Business Day. At the Closing, the Member
shall deliver to the Company a duly executed assignment of its Interest in blank, and shall also, upon the request of the Company, concurrently therewith (or at any time and from time to tune thereafter) execute and deliver such other documents and
records as the Company determines are reasonably necessary or desirable to conclude the Closing and to otherwise allow the Company to complete the Project or otherwise develop, use, sell, rent or dispose of any Property. Regardless of whether the
Member delivers a duly executed assignment, such Member’s interest shall be deemed to have been transferred as of the Closing pursuant to this Section 9.4, and the Member shall no longer be deemed the owner of the transferred Interests and
shall have no further rights as a Member of the Company or under this Agreement as of the Closing, other than any rights to receive any unpaid Purchase Price for such Interests. 

(ii) Delivery. Except as otherwise provided in this section, the Company shall deliver to the Member cash for the full amount of
the Purchase Price at the Closing, or if later, ten business days after the Purchase Price is determined under this Section 9.4. The Company may instead elect (in the Manager’s discretion) to pay the Purchase Price in up to five equal
annual installments (beginning one year after the Closing) without interest. In connection with a Buy-Sell Event that is a Breach Redemption of Senior Equity Interests, the Purchase Price for the Senior Equity Interests shall be paid concurrently
with other distributions under Section 4.1(b). 
 (iii) Liens. If the Member’s Interest is subject to any
Lien, the Company may elect (a) to cause the Purchase Price (or a portion thereof) to be applied to discharge such Lien, (b) to take the Interest subject to such Lien and to reduce the Purchase Price otherwise payable by the Company to the
Member by the amount of such Lien, or (c) to terminate the buy-sell proceedings under this Section 9.4 because of the existence of such Lien and in such event pursue any and all remedies available at law and in equity. 

(e) Appointment of Transferee. Notwithstanding anything in this Agreement to the contrary, the Company shall be entitled to
designate any Affiliate or third party to be the transferee and purchaser of such Interest or obtain financing from any third party with respect to a purchase under this Section 9.4, provided that the foregoing shall not delay the closing of
any such transaction. The reasonable costs of the Closing shall be divided equally, provided that each such Member shall bear its own attorneys’ fees and costs. 
 (f) Specific Enforcement. The Members acknowledge and agree that each Member’s Interest is extraordinary and unique, and the provisions of this Section 9.4 shall be specifically
enforceable. 
 (g) Tax Returns. The Member shall continue, after the Closing, to have access during normal business
hours, to the books and records of the Company to the extent reasonably necessary in connection with the preparation, review or audit of the Investors’ state and federal returns relating to the Company. 

  
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 9.5 Allocation Among Members. Upon the occurrence of any Transfer of an Interest
during any Fiscal Year, Profits, Losses, each item thereof, and all other items attributable to such interest for such Fiscal Year shall be divided and allocated between the transferor and the transferee by taking into account their varying
interests during the Fiscal Year in accordance with Code Section 706(d), using any conventions permitted by law and selected by the Manager. 
 ARTICLE 10 
 WITHDRAWALS: ACTION FOR PARTITION 

10.1 Waiver of Partition. No Member shall, either directly or indirectly, take any action to require partition of any Company
property, and notwithstanding any provisions of applicable law to the contrary, each Member hereby irrevocably waives any and all rights it may have to maintain any action for partition or to compel any sale with respect to its Interest, or with
respect to any assets or properties of the Company, except as expressly provided in this Agreement. 
 10.2 Covenant Not to
Withdraw or Dissolve. Each Member hereby covenants and agrees that the Members have entered into this Agreement based on then mutual expectation that all Members will continue as Members and carry out the duties and obligations undertaken by
them hereunder and that, except as otherwise expressly required or permitted hereby, each Member hereby covenants and agrees not to: 
 (a) take any action to file a certificate of dissolution or its equivalent with respect to itself, 
 (b) withdraw or attempt to withdraw from the Company, 
 (c) exercise any power
under the Act to dissolve the Company, 
 (d) Transfer all or any portion of its interest in the Company (other than in a
Permitted Transfer), 
 (e) petition for judicial dissolution of the Company, or 

(f) demand a return of such Member’s contributions or profits (or a bond or other security for the return of such contributions or
profits) without the consent of holders of a majority of the Voting Interests Percentage, or except as otherwise specifically allowed under this Agreement. 
 ARTICLE 11 
 DISSOLUTION AND WINDING UP 

11.1 Liquidating Events. The Company shall dissolve and commence winding up and liquidating upon the first to occur of the
following (“Liquidating Events”): 
 (a) The sale of all or substantially all of the Property; 

  
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 (b) The agreement of holders of a majority of the Voting Interests Percentage to dissolve,
wind up, and liquidate the Company; 
 (c) The happening of any other event that makes it unlawful or impossible to carry on the
business of the Company; or 
 (d) An administrative dissolution or the entry of a decree of judicial dissolution of the Company
under the Act. 
 The Members hereby agree that the Company shall not dissolve prior to the occurrence of a Liquidating Event.
If it is determined, by a court of competent jurisdiction, that the Company has dissolved prior to the occurrence of a Liquidating Event, the Members hereby agree to continue the business of the Company without a winding up or liquidation.

 11.2 Winding Up. Unless the business of the Company is continued pursuant to Section 11.1, the provisions of this
Section 11.2 shall apply upon the occurrence of a Liquidating Event. 
 (a) Process. The Company shall continue
solely for the purpose of winding up its affairs in an orderly manner, liquidating its assets, and satisfying the claims of its creditors and Members, and no Member shall take any action that is inconsistent with, or not necessary to or appropriate
for, winding up the Company’s business and affairs. To the extent consistent with this ARTICLE 11, all covenants and obligations in this Agreement (including those relating to the control, management and operation of the Company) shall continue
in full force and effect until such time as the Property has been distributed pursuant to this Section 11.2 and the Company has terminated. The Manager or its designee shall be responsible for overseeing the winding up and liquidation of the
Company. 
 (b) Distributions. The Manager or its designee shall apply and distribute as soon as practicable all Company
cash on hand in the following order of priority, unless otherwise required by Applicable Law: 
 (i) First, to the payment and
discharge or the establishment of reserves for the payment of all of the Company’s debts and liabilities to creditors (including guaranty fees, management fees, Member Loans and other amounts of Debt owing to any Member which is then
outstanding), in the order of priority as provided by law; and 
 (ii) Second, to the Members in the manner and order of
priority specified in Section 4.1; provided, however, that any Unpaid Senior Equity Return shall be disregarded (and no distribution of the same shall be made by reason of or reference to Section 4.1(a) above) to the extent that the entire
Unpaid Senior Equity Return exceeds any excess of (i) the sum of cumulative Profits and items of income or gain specially allocated pursuant to Section 3.2 over (ii) the sum of cumulative Losses and items of expense or loss specially
allocated pursuant to Section 3.2 through the end of the year of such Liquidating Event. 

  
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 (c) Compensation; No Creditors as to Capital. The Manager shall not receive any
additional compensation for any services performed pursuant to this ARTICLE 11. 
 11.3 Rights of Members. Except as
otherwise provided in this Agreement, (a) each Member shall look solely to the assets of the Company for the return of its Capital Contributions, and (b) no Member shall have priority over any other Member as to the return of its Capital
Contributions, distributions, or allocations. 
 11.4 Reasonable Time for Winding Up. A reasonable time shall be allowed
for the orderly winding up of the business and affairs of the Company and the liquidation. 
 ARTICLE 12 

MISCELLANEOUS 
 12.1 Notices. Notices may be delivered either by private messenger or delivery service, by certified mail, or facsimile transmission. Any notice or document required or permitted hereunder to a
Member shall be in writing and shall be deemed to be given on the date received by the Member; provided, however, that all notices and documents mailed to a Member in the United States mail, postage prepaid, certified mail return receipt requested,
addressed to the Member at its respective address as shown in the records of the Company, shall be deemed to have been received on the date of receipt or acceptance or failure to accept, and provided further, that the sender of any such notice or
document by facsimile transmission shall bear the burden of proof as to proper transmission and date of transmission of such facsimile. The address and the telecopier number of each of the Members shall for all purposes be as set forth on the
signature page hereof unless otherwise changed by the applicable Member by notice to the other Members and the Company as provided herein. 
 12.2 Binding Effect. Except as otherwise provided in this Agreement, every covenant, term and provision of this Agreement shall be binding upon and inure to the benefit of the Members and their
respective permitted successors, transferees and assigns. 
 12.3 Amendment. Any provision of this Agreement may be
amended, modified or waived with the written approval of Members holding a majority of the Voting Interests Percentage; provided that (1) no provision of ARTICLE 3, ARTICLE 4 or Section 11.2(b) that would adversely affect the allocations
or distributions among the Members as of the date of the Original Operating Agreement with respect to their Interests as of the date of the Original Operating Agreement may be amended or modified in any way that would adversely affect an existing
Member as of the date of the Original Operating Agreement differently than the other Members without the unanimous approval of such adversely affected Members, and (2) Sections 1.7 (related-party transactions), 2.7 (preemptive rights), 9.3 (tag
along rights) and 12.3 (amendment) may not be amended without unanimous approval of the Members. For clarity, Members holding a majority of the Voting Interests Percentage may (without the consent of other Members) amend any provisions of this
Agreement to provide for different allocations and distribution priorities with respect to contributions of additional capital (including by existing Members), as long as no provision of ARTICLE 3, ARTICLE 4 or Section 11.2(b) that would
adversely affect the allocations or distributions among the Members as of the date of the Original 

  
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Operating Agreement with respect to their Interests as of the date of the Original Operating Agreement is amended or modified in any way that would adversely affect an existing Member as of the
date of the Original Operating Agreement differently than the other Members as of the date of the Original Operating Agreement with respect to such Interests. In addition, as provided in Section 2.6, additional Interests may be issued and
Schedules 2.1(a), 2.1(b) and 2.1(c) may be appropriately updated in specified circumstances without any approval of the Members, subject to the preemptive rights in Section 2.7. 

12.4 Construction. Every covenant, term and provision of this Agreement shall be construed simply according to its fair meaning
and not strictly for or against any Member. 
 12.5 Time. Time is of the essence in the performance of each and every
obligation herein imposed. 
 12.6 Titles and Captions. Section and paragraph titles and captions contained in this
Agreement are for reference purposes only and are not intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof. 
 12.7 Severability. Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity
shall not affect the validity or legality of the remainder of this Agreement. 
 12.8 Incorporation by Reference. The
Glossary of Defined Terms and every exhibit, schedule and other appendix attached to this Agreement and referred to herein is incorporated in this Agreement by reference. 
 12.9 Further Assurance. Each Member agrees to perform all further acts and execute, acknowledge and deliver any documents which are or may become necessary, appropriate, or desirable to effectuate
and to carry on the business contemplated by this Agreement. 
 12.10 Pronouns and Plurals. All pronouns and any
variations thereof shall be deemed to refer to masculine, feminine or neuter, singular or plural, as the identity of the Person(s) may require. 
 12.11 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and the Gaming Law. The Company shall exist under and be governed by, and
this Agreement shall be construed in accordance with, the laws of the State of Delaware, except as the same may be superseded by the gaming and other applicable laws of the State of Ohio, including those laws, rules and regulations which may
hereafter be promulgated (the “Gaming Law”). 
 12.12 Arbitration. All claims, actions or disputes arising out
of or relating to this Agreement or the transactions contemplated hereby (collectively, “Disputes”) including any Disputes concerning the construction, validity, performance, and interpretation of this Section 12.12 or any other
provision of this Agreement, shall be exclusively resolved by arbitration pursuant to the Federal Arbitration Act, as provided below. The Company or any party hereto may elect to compel arbitration of any Dispute by notifying each party hereto

  
 23 

 
and the Company of such election. Each Dispute shall be promptly adjudicated by a panel of three arbitrators. Each party to such Dispute shall select an arbitrator for such panel within ten
(10) Business Days of the date of the notice of election to compel arbitration described above. The two arbitrators so selected shall meet and attempt to appoint a third arbitrator, who shall be of good reputation and character and, if
possible, shall be highly knowledgeable of the gaming industry and casino operation and finance. If the two arbitrators shall not have appointed such third arbitrator within thirty (30) days of the date of the notice of election to compel
arbitration described above, the Company or any party hereto may elect to cause such third arbitrator to be appointed by the American Arbitration Association, as soon as practicable. Arbitration shall be conducted by such panel in the City in which
the Company’s main office is then located, pursuant to the rules of the American Arbitration Association. The arbitration panel shall meet to consider the Dispute within ten Business Days of the appointment of its three members, and shall
endeavor to resolve and adjudicate such Dispute in not more than ninety (90) days after its first meeting. Costs, fees and expenses of the arbitrators and the American Arbitration Association shall be paid by the non-prevailing parties, to such
Dispute. Without limitation of any other right or power of the arbitration panel, such panel shall have the right and power to grant remedies in the form of any order for specific performance or other equitable relief. The parties hereby subject
exclusively to the jurisdiction of the Federal Courts of the United States in any action to compel arbitration hereunder or to enforce any order, decision or judgment of the arbitrators. 

12.13 Counterpart Execution. This Agreement may be executed in any number of counterparts with the same effect as if all of the
Members had signed the same document. All counterparts shall be construed together and shall constitute one agreement. 
 12.14
No Third Party Rights. Except as provided in ARTICLE 6, this Agreement is intended to create enforceable rights between the parties hereto only, and creates no rights in, or obligations to, any other Persons whatsoever. Without limiting the
generality of the foregoing, as to any third party, a deficit capital account of a Member shall not be deemed to be a liability of such Member nor an asset or property of the Company. 

12.15 Estoppel Certificates. Upon the written request of the Manager, the Members shall, within fifteen (15) days of its
receipt of such request, execute and deliver a written statement certifying: (a) that this Agreement is unmodified and in full force and effect (or, if modified, that this Agreement is in frill force and effect as modified and, stating any and
all modifications), (b) that such Member is not in default hereunder, except as specified in such statement, and (c) that to its actual knowledge, no event has occurred which with the passage of tune or the giving of notice, or both, would
ripen into a default by such Member hereunder, except as specified in such statement. 
 12.16 Usury. If any return,
interest payment, or other charge payable under this Agreement shall at any time exceed the maximum amount chargeable by Applicable Law, then the applicable rate of return or interest shall be the maximum rate permitted by Applicable Law.

 12.17 Business Days. Any reference in this Agreement to “business days” shall mean all calendar days except
Saturday, Sundays, and Ohio or federal legal holidays. 

  
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 GLOSSARY OF DEFINED TERMS 

(a) “Act” has the meaning specified in Section 1.1. 

(b) “Additional Preferred Return” shall mean (1) with respect to ROCK OHIO VENTURES I LLC an amount equal to ten
(10) times the Capital Contribution (exclusive of any Senior Equity Capital Contribution) made with respect to its Interest in the Company, provided, however, that in no event shall the Capital Contribution upon which the Additional Preferred
Return is based exceed the amounts set forth on Schedule 2.1(a) with respect to ROCK OHIO VENTURES I LLC, and (2) with respect to LAKES OHIO DEVELOPMENT LLC an amount equal to $5,000,000. 

(c) “Adjusted Capital Account Deficit” means, the deficit balance, if any, in a Member’s Capital Account as of the end of
the taxable year, after giving effect to the following adjustments: 
 (i) credit to such Capital Account any amount which such
Member is obligated to restore under Treasury Regulation Section 1.704-l(b)(2)(ii)(c) or is deemed obligated to restore pursuant to the penultimate sentences of Treasury Regulation Sections 1.704-2(g)(1) or 1.704-2(i)(5); and 

(ii) debit to such Capital Account the items described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and
1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations. 
 (d) “Affiliate” means, with respect to any Person, any Person
directly or indirectly controlling, controlled by or under common control with such Person. For purposes of this definition, the term “controls,” “is controlled by,” or “is under common control with shall mean the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise. 

(e) “Agreement” has the meaning specified in the first sentence of this operating agreement, and shall further mean this
operating agreement of the Company as amended, supplemented or otherwise modified from time to time. Words such as “herein’, “hereinafter”, “hereof”, “hereto”, and “hereunder’ refer to this Agreement
as a whole, unless the context otherwise requires. 
 (f) “Applicable Law” means all applicable laws, ordinances,
rules, regulations, statutes, case law and orders, including the Gaming Law and all applicable Environmental Laws. 
 (g)
“Approved Sale” is defined in Section 9.2. 
 (h) “Augmented Capital Account” is defined in
Section 3.1. 
 (i) “Breach Redemption” is defined in Section 9.4. 

  
 26 

 (j) “Business Day” is defined in Section 12.17. 

(k) “Buy-Sell Events” is defined in Section 9.4. 
 (l) “Caesars” means Caesars Ohio Investment, LLC. 
 (m) “Capital
Account” means the accounting record of each Member’s capital interest in the Company. There shall be credited to each Member’s Capital Account (a) the amount of any contribution of cash by that Member, (b) the Gross Asset
Value of any other property contributed by that Member, (c) that Member’s allocable share of Profits and any items in the nature of income or gain that are specially allocated to that Member pursuant to Section 3.2 of this Agreement,
and (d) the amount of any Company liabilities that the Member assumes or takes subject to under Code Section 752. There shall be debited against each Member’s Capital Account (i) the amount of all distributions of cash to that
Member unless a distribution to the Member is a loan or is deemed a guaranteed payment under Code Section 707(c), (ii) the Gross Asset Value of any other property distributed to that Member by the Company, (iii) that Member’s
allocable share of Losses and any items in the nature of expenses or losses which are specially allocated to that Member pursuant to Section 3.2 of this Agreement, and (iv) the amount of any liabilities of that Member that the Company
assumes or takes subject to under Code Section 752. The transferee of all or a portion of an Interest shall succeed to that portion of the transferor Member’s Capital Account that is allocable to the portion of the Interest transferred.
This definition of Capital Account and the other provisions herein relating to the maintenance of Capital Accounts are intended to comply with Regulation Sections 1.704-1(b) and 1.704-2 and shall be interpreted and applied in a manner consistent
with those Regulation Sections. In the event the Manager shall determine that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including, without limitation, debits or credits relating to
liabilities which are secured by contributed or distributed property or which are assumed by the Company or the Members), are computed in order to comply with such Regulations, the Manager may make such modification, provided that such modification
is reasonable in relation to the requirements of the Regulations. The Manager also shall (i) to the extent permitted by the Code and other Applicable Law, make any reasonable adjustments that are necessary or appropriate to maintain equality
between the Capital Accounts of the Members and the amount of Company capital reflected on the Company’s balance sheet, as computed for book purposes in accordance with Regulations Section 1.704-1(b)(2)(iv)(q), and (ii) make any
reasonable appropriate modifications in the event unanticipated events might otherwise cause this Agreement not to comply with Regulations Section 1.704-1(b). 
 (n) “Capital Contribution Commitment” means the amount set forth on Schedule 2.1(a) as the total initial Capital Contribution (exclusive of any Senior Equity Capital Contribution) on a
per-Member basis. 
 (o) “Capital Contribution Date” is defined in Section 2.5. 

(p) “Capital Contributions” means, with respect to any Member, the amount of money, the initial Gross Asset Value of any
property (other than money) contributed to the Company net of liabilities assumed or taken subject to by the Company 

  
 27 

 
and liabilities of the Company assumed by such Member pursuant to the terms of this Agreement. 
 (q) “Casino Site LLCs” is defined in Section 2.1(b). 
 (r)
“Certificate of Formation” means the certificate of formation filed with the Delaware Secretary of State for the purpose of forming the Company pursuant to the Act, as amended from time to time in accordance with this Agreement and the
Act. 
 (s) “Cincinnati LLC” is defined in Section 2.1(b). 

(t) “Cleveland LLC” is defined in Section 2.1(b). 

(u) “Cleveland Peninsula LLC” is defined in Section 2.1(b). 

(v) “Closing” is defined in Section 9.4(d)(i). 
 (w) “Code” means the United States Internal Revenue Code of 1986, as amended from time to time (or any corresponding provisions of succeeding law). 

(x) “Company” has the meaning specified in the introductory paragraph of this Agreement, and shall further mean and include the
limited liability company formed by this Agreement and the company continuing the business of this Company in the event of dissolution (until completion of liquidation and distribution of the proceeds) as herein provided. 

(y) “Company Minimum Gain” has the meaning of “partnership minimum gain” set forth in Regulations
Sections 1.704-2(b)(2) and 1.704-2(d). 
 (z) “Cure Period” is defined in Section 9.4(a). 

(aa) “Debt” of any Person means (a) all indebtedness of such Person for borrowed money, (b) all obligations of such
Person for the deferred purchase price of property or services, (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property),
(e) all obligations of such Person as lessee under leases that have been or should be, in accordance with GAAP, recorded as capital leases, (f) all obligations, contingent or otherwise, of such Person under acceptance, letter of credit or
similar facilities, (g) obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any capital stock of such Person or any warrants, rights or options to acquire such capital stock, valued, in the case of
redeemable preferred stock, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, (h) all obligations of such Person in respect of interest rate swap agreements, currency swap agreements and
other similar agreements designed to hedge against fluctuations in interest rates or foreign exchange rates, (i) all obligations for production payments from property operated by or on behalf of such Person and other similar arrangements with
respect to natural resources, (j) all Debt referred to in clauses (a) through (i) above guaranteed directly or 

  
 28 

 
indirectly by such Person, or in effect guaranteed directly or indirectly by such Person through an agreement (i) to pay or purchase such Debt or to advance or supply funds for the payment
or purchase of such Debt, (ii) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Debt or to assure the holder of such Debt
against loss, (iii) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether such property is received or such services are rendered) or (iv) otherwise
to assure a creditor against loss, and (k) all Debt referred to in clauses (a) through (j) above secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property
(including, without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt. 
 (bb) “Demand Notice” is defined in Section 9.4(a). 
 (cc)
“Depreciation” means, means, for each Fiscal Year or other period, an amount equal to the depreciation, amortization or other cost recovery deduction allowable for federal income tax purposes with respect to an asset for that year or other
period, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of the Fiscal Year or other period, Depreciation shall be an amount which bears the same ratio to such Gross
Asset Value as the federal income tax depreciation, amortization, or other cost recovery deduction for that Fiscal Year or other period bears to the adjusted tax basis of such asset; provided, however, that if the federal income tax depreciation,
amortization or other cost recovery deduction for the applicable year or period is zero, Depreciation shall be determined with reference to the Gross Asset Value of such asset using any reasonable method selected by the Company. 

(dd) “Disputes” is defined in Section 12.12. 
 (ee) “Environmental Law” means any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award relating to the environment, health or safety or to the release of any
materials into the environment, including, without limitation, the Clean Air Act, as amended, the Clean Water Act of 1977, as amended, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, the Hazardous
Materials Transportation Act, as amended, and the Resource Conservation and Recovery Act of 1976, as amended. 
 (ff)
“Federal Tax Amount” is defined in Section 4.2. 
 (gg) “Fiscal Year” means (i) a twelve
(12) month period commencing on January 1st and ending on December 31st (or such other period as may be required by Section 706 of the Code), or (ii) any portion of the period described in clause (i) for which the
Company is required to allocate Profits, Losses and other items of Company income, gain, loss or deduction pursuant to ARTICLE 3. 
 (hh) “GAAP” means, as of any date of determination, accounting principles as codified by the Financial Accounting Standards Board or that are then approved by such

  
 29 

 
other entity as may be approved by a significant segment of the accounting profession in the United States. The term “consistently applied,” as used in connection therewith, means that
the accounting principles applied are consistent in all material respects with those applied at prior dates or for prior periods. 
 (ii) “Gaming Authority” shall mean the Ohio Lottery Commission, the Ohio Lottery Faming Facility Review Board, the Ohio Racing and Gaming Commission and any other gaming control board or
regulatory or any successor governmental authorities established by the State of Ohio, all to the extent they regulate any of the Company’s or the Joint Venture’s gaming operations together with all authorities governing gaming in states
or countries in which Caesars Ohio Investment, LLC, its parent, or their respective Affiliates currently conduct or in the future may conduct gaming operations, excluding any gaming authority established by any Native American tribe. 

(jj) Gaming Law” is defined in Section 12.11. 
 (kk) “Gross Asset Value” means with respect to any Company asset, the asset’s adjusted basis for federal income tax purposes, except as follows: 

(i) the initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of that asset
as determined by the Manager or pursuant to this Agreement for the initial contributions; 
 (ii) the Gross Asset Value of all
Company assets shall be adjusted to equal their respective gross fair market values, as determined by the Manager, as of the date upon which any of the following occurs: (A) the acquisition of an additional interest in the Company after the
date of this Agreement (or, in the Manager’s discretion, on or about the date of this Agreement in connection with the issuance of the Senior Equity Interests) by any new or existing Member, in exchange for more than a de minimis Capital
Contribution or the distribution by the Company to a Member of more than a de minimis amount of cash or other property as consideration for an interest in the Company, if the Manager determines that such adjustment is necessary or appropriate to
reflect the relative economic interest of the Members of the Company; and (B) the liquidation of the Company within the meaning of Regulation Section 1.704-l(b)(2)(ii)(g); 

(iii) the Gross Asset Value of any Company asset distributed to any Member shall be the gross fair market value of that asset on the
date of distribution, as determined by the Manager; 
 (iv) if an election under Code Section 754 has been made, the Gross
Asset Value of Company assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of the assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken
into account in determining Capital Accounts pursuant to Regulation Section 1.704-(b)(2)(iv)(m); provided, however, that Gross Asset Value shall not be adjusted pursuant to this subsection (iv) to the extent that the Manager determines
that an adjustment pursuant to subsection (ii) hereof is necessary or appropriate in 

  
 30 

 
connection with a transaction that would otherwise result in an adjustment pursuant to this subsection (iv); and 
 (v) If the Gross Asset Value of an asset has been determined or adjusted pursuant to subsection (i) or (ii), then Gross Asset Value shall thereafter be determined by taking into account any
adjustments for Depreciation with respect to that asset for purposes of computing Profits and Losses (rather than depreciation, amortization or other cost recovery with respect to such asset as determined for income tax purposes). For the purposes
of the definition of Gross Asset Value, values which are determined by the Manager, shall mean the good faith determination of the Manager. 
 (ll) “Interest” shall mean the entire interest of a Member in the Company, including all of such Member’s rights, powers and privileges under this Agreement and the Act. 

(mm) “Joint Venture” means Rock Ohio Caesars, LLC, a Delaware limited liability company. 

(nn) “Lien” means any lien, security interest or other charge, option, claim or encumbrance of any kind, or any other type of
preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property. 

(oo) “Liquidating Event” is defined in Section 11.1. 

(pp) “Management Agreement” is defined in Section 5.4. 

(qq) “Manager” is defined in Section 5.1. 
 (rr) “Member Guaranties” is defined in Section 2.3. 
 (ss)
“Member Loan(s)” is defined in Section 2.2. 
 (tt) “Member Minimum Gain” means an amount, with respect
to each Member Nonrecourse Debt, equal to the Company Minimum Gain that would result if such Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in the same manner as “partner nonrecourse debt minimum gain” in
accordance with Section 1.704-2(i) of the Regulations. 
 (uu) “Member Nonrecourse Debt” has the meaning of
“partner nonrecourse debt” set forth in Section 1.704-2(b)(4) of the Regulations. 
 (vv) “Member
Nonrecourse Deductions” has the meaning of “partner nonrecourse deductions” set forth in Sections 1.704-2(i)(1) and 1.704-2(i)(2) of the Regulations. 
 (ww) “Members” means those Persons executing this Agreement as Members. 

  
 31 

 (xx) Nonrecourse Liability” has the meaning set forth in Section 1.704-2(b)(3) of
the Regulations. 
 (yy) “Original Operating Agreement” is defined in the Recitals. 

(zz) “Other Interests” is defined in Section 1.6. 

(aaa) “Percentage Interest” means the fraction, expressed as a percentage, whose numerator is the aggregate amount of such
Member’s Capital Contributions (exclusive of Senior Equity Capital Contributions) made on or prior to such date and whose denominator is the aggregate of the amounts of the Capital Contributions (exclusive of Senior Equity Capital
Contributions) of all Members made on or prior to such date, in each case as such Capital Contributions referenced above shall be reflected on the books and records of the Company. In the event any Company interest is transferred in accordance with
the provisions of this Agreement, the transferee of such interest shall succeed to the Percentage Interest of his transferor to the extent it relates to the transferred interest. 

(bbb) “Permitted Transfer” is defined in Section 9.1. 

(ccc) “Person” means any individual, company (general or limited), limited liability company, corporation, trust, or other
entity. 
 (ddd) “Preemptive Rights Notice” is defined in Section 2.7. 

(eee) “Preferred Return” shall mean ten (10) times the Capital Contribution (exclusive of any Senior Equity Capital
Contribution) made by a Member, provided, however, that in no event shall the Capital Contribution upon which the Preferred Return is based exceed the amounts, or apply to Members other than those, set forth on Schedule 2.1(a) with respect to any
Member; for the avoidance of doubt, Senior Equity Interests shall not be entitled to any Preferred Return. 
 (fff)
“Profits” and “Losses” means, for each Fiscal Year or other period, an amount equal to the Company’s taxable income or loss for that year or period, determined in accordance with Code Section 703(a) (for this purpose,
all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments: 

(i) any tax-exempt income of the Company described in Code Section 705(a)(1)(B) and not otherwise taken into account in computing
Profits or Losses shall be added to that taxable income or loss; 
 (ii) any expenditures of the Company described in Code
Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulation Section 1.704-1(b)(2)(iv)(i), shall be subtracted from that taxable income or loss; 

(iii) in the event the Gross Asset Value of any Company asset is adjusted as required by subsections (ii) or (iii) of the
definition of Gross Asset Value, the 

  
 32 

 
amount of that adjustment shall be taken into account as gain or loss from the disposition of that asset for purposes of computing Profits or Losses in the Fiscal Year of adjustment; 

(iv) gain or loss resulting from any disposition of Company property with respect to which gain or loss is recognized for federal income
tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted basis of that property for federal income tax purposes may differ from its Gross Asset Value; 

(v) in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing the taxable income or
loss, there shall be taken into account the Depreciation for the Fiscal Year or other period; and 
 (vi) any items of income,
gain, loss or deduction that are specially allocated pursuant to Section 3.2, or allocated solely for tax purposes pursuant to Section 3.4, shall not be taken into account in computing Profits or Losses, any preceding provision of this
definition to the contrary notwithstanding. 
 (ggg) “Project” means all the real property, development and business
activities of or relating to any casino located in the cities of Cincinnati, Ohio and Cleveland, Ohio which is operated by the Company or its designee from time to time. 
 (hhh) “Property” means all real and personal property owned by the Company from time to time, and shall include both tangible and intangible property. 

(iii) “Purchase Price” is defined in Section 9.4(b). 

(jjj) “Regulations” means the Income Tax Regulations, including Temporary Regulations, promulgated under the Code, as such
regulations may be amended from time to time (including corresponding provisions of succeeding regulations). 
 (kkk)
“Regulatory Redemption” is defined in Section 9.4. 
 (lll) “Related Persons” is defined in
Section 1.6. 
 (mmm) “Securities Act” is defined in Section 7.2. 

(nnn) “Senior Capital Call Breach Redemption” is defined in Section 9.4. 

(ooo) “Senior Equity Capital Commitment” means the amounts set forth on Schedule 2.1(c) as the total commitment for Senior
Equity Interests on a per-Member basis for those Members who subscribed for Senior Equity Interests. 
 (ppp) “Senior
Equity Capital Contribution” means, with respect to any Member who holds Senior Equity Interests, Capital Contributions for Senior Equity Interests made pursuant to Section 2.1(c). 

  
 33 

 (qqq) “Senior Equity Interests” means the Interests in the Company purchased
pursuant to Subscription Agreements for Senior Equity Interests and related to the Senior Equity Capital Contributions. 
 (rrr)
“Senior Equity Interests Percentage” means, with respect to any Member as of any date, a fraction, expressed as a percentage, the numerator of which is the aggregate amount of such Member’s Senior Equity Capital Contributions made on
or prior to such date and the denominator of which is the aggregate of the amounts of the Senior Equity Capital Contributions of all Members made on or prior to such date, in each case as such Senior Equity Capital Contributions referenced above
shall be reflected on the books and records of the Company. In the event any Senior Equity Interest is transferred in accordance with the provisions of this Agreement, the transferee of such Interest shall succeed to the Senior Equity Interests
Percentage of his transferor to the extent it relates to the transferred Interest. 
 (sss) “Senior Equity Return”
shall mean, with respect to each Member holding Senior Equity Interests, the amount accruing on a daily basis, at 15% per annum, on the sum of the Unreturned Senior Equity Capital Contributions of such Member and the Unpaid Senior Equity Return
thereon at the close of the preceding fiscal year (i.e., Senior Equity Return shall compound on the last day of each fiscal year). 
 (ttt) “Shared Promotion” is defined in Section 1.7(b). 
 (uuu)
“State Tax Amount” is defined in Section 4.2. 
 (vvv) “Tax Matters Member” is defined in
Section 8.5. 
 (www) “Taxable Income” is defined in Section 4.2. 

(xxx) “Transfer” means, as a noun, any direct or indirect, voluntary or involuntary transfer, sale, other disposition or
hypothecation, and, as a verb, directly or indirectly, voluntarily or involuntarily to transfer, sell, otherwise dispose of or hypothecate. The term Transfer shall also include any voluntary or involuntary transfer, sale, other disposition or
hypothecation of any kind, or any other transaction regardless of its form or structure, whereby a Member’s Interest in the Company is reduced except reductions resulting solely from adjustment to the Capital Accounts. An indirect Transfer
includes (1) the transfer of equity interests in any Member that is an entity or in any of its owners that is an entity up the entire chain of ownership, and (2) with respect to any trust in the chain of ownership, any change in trustees
or beneficiaries of such trust, but not including distributions to beneficiaries from such trust. 
 (yyy) “Unpaid
Additional Preferred Return” means the Additional Preferred Return of ROCK OHIO VENTURES I LLC and LAKES OHIO DEVELOPMENT LLC reduced by distributions on account of such Additional Preferred Return under Section 4.1(d). 

(zzz) “Unpaid Preferred Return” means the Preferred Return reduced by distributions on account of such Preferred Return under
Section 4.1(e). 

  
 34 

 (aaaa) “Unpaid Senior Equity Return” means the Senior Equity Return reduced by
distributions on account of such Senior Equity Return under Section 4.1(a). 
 (bbbb) “Unreturned Capital
Contributions” means the Capital Contributions (exclusive of any Senior Equity Capital Contributions) of each Member reduced by distributions on account of such Capital Contributions under Section 4.1(c). 

(cccc) “Unreturned Senior Equity Capital Contributions” means the Senior Equity Capital Contributions of each Member who holds
Senior Equity Interests reduced by distributions on account of such Senior Equity Capital Contributions under Section 4.1(b). 
 (dddd) “Voting Interests Percentage” means, with respect to any Member as of any date, a fraction, expressed as a percentage, the numerator of which is the aggregate amount of such Member’s
Capital Contributions made on or prior to such date and the denominator of which is the aggregate of the amounts of the Capital Contributions of all Members made on or prior to such date, in each case as reflected on the books and records of the
Company. In the event any Interest is transferred in accordance with the provisions of this Agreement, the transferee of such Interest shall succeed to the Voting Interests Percentage of his transferee to the extent it relates to the transferred
Interest. 

  
 35 

 SIGNATURE PAGE TO FIRST AMENDED AND RESTATED OPERATING 

AGREEMENT OF ROCK OHIO VENTURES LLC 
 IN WITNESS WHEREOF, the parties have entered into this Agreement as of the date first above set forth. 
  

									
	 ROCK OHIO VENTURES I LLC
 A Delaware limited liability company
	 		 	 ROCK OHIO VENTURES II LLC,
 A Delaware limited liability company

					
	By:	 	 /s/ Matthew Cullen
	 		 	By:	 	 /s/ Matthew Cullen

					
	Its:	 	Authorized Signatory	 		 	Its:	 	Authorized Signatory

									
					
	Address:	 	 1086 Woodward Avenue
 Detroit,
Michigan 48226
 Fax: (877) 380-5965
	 		 	Address:	 	 1086 Woodward Avenue
 Detroit,
Michigan 48226
 Fax: (877) 380-5965

									
				
	 LAKES OHIO DEVELOPMENT LLC
 A Minnesota limited liability company
	 		 		 	
					
	By:	 	 /s/ Timothy Cope
	 		 		 	
					
	Its:	 	 PRESIDENT
	 		 		 	

									
					
	Address:	 	 130 CHESHIRE LANE, S. 101
	 		 		 	
				
	 MINNETONKA, MN 55305
	 		 		 	

									
					
	Fax:	 	 952.449.9353

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