Norton Rose Fulbright South Africa Inc Our ref: EXX72

Transcription

1 Norton Rose Fulbright South Africa Inc Our ref: EXX72

2 Memorandum of incorporationincorporation of Exxaro Resources Limited a public company Norton Rose Fulbright South Africa Inc Our ref: EXX72

3 Norton Rose Fulbright South Africa Inc Our ref: EXX72

4 Norton Rose Fulbright South Africa Inc Our ref: EXX72

5 Contents 1 Definitions and interpretation 1 2 Incorporation and nature of the company 2 3 Securities of the company 6 4 Shareholders 11 5 Shareholders Meetings 16 6 Directors and officers 20 7 General Provisions 28 1

6 Memorandum of incorporation Incorporation of Exxaro Resources LimitedRegistration (registration number: 2000/011076/06) (Company) Table of Contents 1 1. Definitions and interpretation 2 2. Incorporation and nature of the Company6 3. Securities of the Company Shareholders Shareholders meetings Directors and officers General provisions Adoption of MoI 33

7 1 Definitions and interpretation 1.1 In this MoIMemorandum of Incorporation: a reference to a section number refers to a section of the Act; unless inconsistent with the context, words that are defined in the Act bear the same meaning in this MoIMemorandum of Incorporation; the headings to the clauses are used for reference purposes only and do not affect the terms of this MoIMemorandum of Incorporation. 1.2 Unless inconsistent with the context, the words and expressions set forth below shall bear the following meanings and cognate expressions shall bear corresponding meanings: Act means the Companies Act, 2008, as amended, together with any regulations published in terms thereof; ASAC means Anglo South Africa Capital Proprietary Limited (Registration number: 1999/002391/07)of it; BEE Holdco means Main Street 333 Proprietary Limited (Registration number: 2005/025692/07); (4) BHP means BHP Billiton SA Holdings Limited (Registration number 1896/001358/06);(5) Black Economic Empowerment means the economic empowerment of all HDSAs including women, workers, youth, people with disabilities and people living in rural areas through diverse but integrated socio-economic strategies;act and BEE Codes means the Broad-Based Black Economic Empowerment Act, 2003 and the Codes of Good Practice on Black Economic Empowerment published under such Act; (6) Broad-Based Ownership means that the benefits of ownership of the ordinary shares in a company are enjoyed by a wide range and large number of beneficiaries, the majority of whom are HDSAs, including women, business persons, the youth and rural communities; (7) Charter means the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry developed under section 100 of the MPRDA, together with the Charter Scorecard (and any amended or replacement charter and/or scorecard from time to time); (8) Charter Scorecard means the scorecard contained in the Charter; (9) Chief Executive Officer means the individual appointed as such in terms of clause (61); (10) Credits means equity credits under the Charter for having achieved HDSA participation in terms of ownership and control by HDSAs of equity or attributable units of production in respect of mining industry assets in compliance with the empowerment requirements applicable from time to time in the mining sector, as contemplated by the MPRDA, and the Charter; (11) Company means Exxaro Resources Limited, (Registration number: 2000/011076/06); 2

8 (4) (5) Chief Financial Officer means the individual appointed as such in terms of clause 6.10 (12) Commission means the Companies and Intellectual Property Commission established by section 185 of the Act; (13) Control of, or in relation to, any company or corporate entity (other than a trust) (Corporate), means that a person or persons (individually or collectively): (c) owns or own (directly or indirectly) over 50% of the ordinary shares or other equity interest of such Corporate; and controls or control (directly or indirectly) over 50% of voting rights exercisable by members in a general meeting or otherwise of such Corporate; and is or are entitled (directly or indirectly) to appoint a majority of directors of the board of directors or other governing body of such Corporate, or to appoint or remove directors or similar representatives having a majority of the votes exercisable at meetings of the board of directors or other governing body of such Corporate; (14) CSDP means a central securities depository as defined in section 1 of the Securities Services Act; (15) Designated Parties means ASAC and BHP; (6) (16) Director means a member of the board of the Company and the alternate Directors thereof; (17) EEPS means the Exxaro Empowerment Participation Scheme, being a majority HDSA employee share participation scheme established for the benefit of employees of the Company; (18) Empowerment Requirements means the empowerment requirements from time to time applicable to entities in the mining sector, as contained in the MPRDA, the regulations published under the MPRDA and the Charter; (19) Final Date means the earlier of: 27 November 2016; and the date on which the Designated Parties are satisfied, in their sole and absolute discretion (which discretion shall not be capable of challenge by any person) that their Credits obtained, directly or indirectly, under Project Pangolin can by operation of Law no longer be lost or rescinded (in any way whatsoever), after taking into account amongst other things: (i) (ii) (iii) (iv) the Designated Parties objective to obtain certainty regarding the securing of their Credits; any changes in Law which create (or purport to create) certainty in relation to Credits; general legal opinion on the effect of such changes in Law; prevailing industry views on such changes in Law; 3

9 (v) (vi) any representations made by the Company; written confirmation (if any) from the Minister of Mineral Resources (or any replacement thereof) that their Credits are secure.(20) Financing Agreements means all agreements or documents in respect of the financing arrangements required for, in respect of and/or related to Project Pangolin;his or her alternate, if any; (7) (21) Group Company Secretary means the company secretary of the group of companies of which the Company is a part; (22) HDSA means: (c) (d) an historically disadvantaged South African, being any natural person, disadvantaged in law by unfair discrimination before the Constitution of the Republic of South Africa Act, 1993, came into operation; a category or community of persons contemplated in clause 1.2(21); an unincorporated entity or association, or a trust, having as the majority of its beneficiaries (whether vested or discretionary) and trustees or representatives of its governing body the persons contemplated in clause 1.2(21); a company or other corporate entity (other than a trust) Controlled by (i) one or more of the persons contemplated in clause 1.2(21); and/or (ii) the persons contemplated in clause 1.2(21); and/or (iii) an unincorporated entity or association, or trust, contemplated in clause 1.2(21)(c); and/or a company Controlled by any of the persons referred to in clauses 1.2(21) to 1.2(21)(c); provided that where the Designated Parties are satisfied, in their sole and absolute discretion (which discretion shall not be capable of challenge by any person) that, by operation of Law, the requirements to be classified as an HDSA have become: less onerous than those set out above, then HDSA status shall (for purposes of this MoI and all other Transaction Agreements and Financing Agreements) be measured in accordance with such new requirements set out in Law (which new requirements shall be deemed to be included into this MoI and all other Transaction Agreements and Financing Agreements, and this MoI and all other Transaction Agreements and Financing Agreements shall be deemed to be amended accordingly); or more onerous than those set out above, then HDSA status shall (for purposes of this MoI and all other Transaction Agreements and Financing Agreements) still be measured in accordance with the original requirements set out above (and accordingly, such more onerous requirements will not apply, in any way whatsoever, to this MoI and all other Transaction Agreements and Financing Agreements); after taking into account amongst other things: the Designated Parties' objective to obtain certainty regarding the securing of their Credits; any changes in Law which amend (or purport to amend) the requirements to be classified as an HDSA; 4

10 (c) (d) (e) general legal opinion on the effect of such changes in Law; any representations made by the Company; prevailing industry views on such changes in Law; (8) (23) JSE means the JSE Limited (registration number 2005/022939/06) a company duly registered and incorporated with limited liability under the company laws of the Republic of South Africa and a licensed as an exchange under the Securities ServicesFinancial Markets Act, 2012; (24) JSE qualifying Shareholders means certificated Shareholders and dematerialised Shareholders who have elected to receive shareholder documentation from the Company in accordance with the JSE Listings Requirements; (9) (25) Law means any: law including common law, statute, constitution, decree, judgment, treaty, regulation, directive, by-law, order or any other measure of any government, local government, statutory or regulatory body or court having the force of law; (c) primary or delegated legislation of general application which has been validly and finally enacted into law; or judgment of a South African court of final instance; or valid governmental or quasi-governmental authority, decree or binding written undertaking, which (i) varies or amends the Empowerment Requirements, and (ii) in the sole and absolute discretion of the Designated Parties (such discretion to be exercised acting reasonably, taking into account inter alia the Designated Parties' objective to obtain certainty regarding the securing of their Credits, any changes in Law which create (or purport to create) certainty in relation to Credits, (c) general legal opinion on the effect of such changes in Law, (d) prevailing industry views on such changes in Law, (e) any representations made by the Company, and (f) written confirmation (if any) from the Minister of Minerals Resources that their Credits are secure; provided that such discretion shall not be capable of being challenged by any person in any way whatsoever) creates certainty that their Credits obtained, directly or indirectly, under Project Pangolin may not at any time be lost or rescinded in any way whatsoever (i.e. 'once empowered, always empowered'); (10) (26) Listings Requirements means the JSE Listings Requirements of the JSE as amended from time to time; (27) MoI means this memorandum of incorporation; (28) MPRDA means the Mineral Petroleum and Resources Development Act, 2002, together with any regulations published in terms thereof (11) (29) Participant means a depository institution accepted by a CSDP participant as defined in section 1 of the Financial Markets Act, 2012; (30) Project Pangolin means the transaction in terms of which the Company became an HDSA company (as defined by the Charter) pursuant to the Transaction Agreements which were entered into in September 2006; 5

11 (31) Republic means the Republic of South Africa; (12) (13) (32) Securities means securities, as defined by the Securities Services Act in the Company andhas the meaning set out in the Act which includes Shares; (33) Securities holdershareholder means, subject to section 57, the holder of a Securityshare issued by the Company and who is registered as such in the Company s Securitiessecurities register; and (34) Securities Services Act means the Securities Services Act, 2004, together with any regulations published in terms thereof (14) (35) Shares means one of the units into which the proprietary interests of the Company is divided as contemplated in clause 3.1; (36) Shareholder means the holder of a Share issued by the Company and who is registered as such in the Company s Securities register, with a registered address in the Republic or elsewhere;(37) Transaction Agreements means all agreements or documents required for the implementation of Project Pangolin but excluding the Financing Agreements, provided that a reference to "Transaction Agreements" in the Financing Agreements shall embrace all the Transaction Agreements as described above and all the Financing Agreements If any provision in a definition is a substantive provision conferring rights or imposing obligations on any person, notwithstanding that it is only in the definition clause, effect shall be given to it as if it were a substantive provision of this MoIMemorandum of Incorporation. Unless inconsistent with the context, an expression which denotes: any gender includes the other genders; a natural person includes an artificial person (including a trust) and vice versa; and the singular includes the plural and vice versa. 1.5 The schedules to this MoI, if any, form an integral part hereof and words and expressions defined in this MoI shall bear, unless the context otherwise requires, the same meaning in such schedules When, in this MoIMemorandum of Incorporation, a particular number of business days areis provided for between the happening of one event and another, the number of days must be calculated by: excluding the day on which the first such event occurs; including the day on or by which the second event is to occur; and excluding any public holiday in South Africa, Saturday or Sunday that falls on or between the days contemplated in clauses and , respectively. [s 5] Where any term is defined within the context of any particular clause in this MoIMemorandum of Incorporation, the term so defined, unless it is clear from the clause in question that the term so defined has limited application to the relevant clause, shall bear the same meaning ascribed to it for all purposes in terms of this MoIMemorandum of 6

12 Incorporation, notwithstanding that, that term has not been defined in this interpretation clause AAny reference to any statutory enactment in this MoIin this Memorandum of Incorporation to any agreement or document will be construed as a reference to that enactment as amended or substitutedagreement or document as initially concluded, and as amended, varied, novated or supplemented afterwards from time to time. Incorporation and nature of the Companycompany Incorporation The Company was incorporated on 7 June 2000as from the date reflected in its registration certificate as a public company and is a profit company. The Company is constituted subject to: (c) (d) the unalterable provisions of the Act; any provisions set out in this Memorandum of Incorporation imposing on the Company a higher standard, greater restriction, longer period of time or any similar more onerous requirement, than would otherwise apply to the Company in terms of an unalterable provision of the Act; the alterable provisions of the Act, subject to the limitations, extensions, restrictions, variations or substitutions set out in this MoIMemorandum of Incorporation; and the provisions of this MoIMemorandum of Incorporation. 2.2 Powers of the Company [s 15 or (c); s 19(ii)] This MoIMemorandum of Incorporation does not: contain any restrictive conditions applicable to the Company and any requirement, in addition to the requirements set out in clause 2.3, for the amendment of any such conditions; and prohibit the amendment of any particular provision hereof. The Company has all of the legal powers and capacity of an individual, to the extent possible, subject to any restrictions, limitations or qualifications arising from this MoIMemorandum of Incorporation. Shareholders may not propose any resolution in terms of sections 20 and 20(6) of the Act in the event that such a resolution would lead to the ratification of an act that is contrary to the Listings Requirements, unless the JSE agrees otherwise in writing. 2.3 MoIMemorandum of Incorporation and Company rules [s 16; s 16(5); s 16(7); s 16(9); s 15; s 15(5)] 7

13 Until the Final Date, the Company may not amend or delete clause 3.1, 3.1(7), 3.1(12), 6.1 and 6.5(9) without the prior written consent of the Designated Parties (which consent is in their sole and absolute discretion and which will not be capable of being challenged by any person) or as otherwise agreed by them, unless it is legally required to do so. Subject to clause 2.3, this MoIThis Memorandum of Incorporation of the Company may be altered or amended: in compliance with a court order effected by a resolution of the Company s board;, in compliance with a court order; or by a special resolution of the Shareholders but subject to that special resolution having been proposed by: (i) (ii) the board; or(ii) by Shareholders entitled to exercise at least 10% of the voting rights that may be exercised on such a resolution; Shareholders entitled to exercise at least 10% of the voting rights that may be exercised on such resolution. [LR 10.5(d)] If the alteration or amendment relates to any class of Shares (other than ordinary Shares) already in issue, that amendment must not be implemented without a special resolution taken by the holders of Shares in that class at a separate meeting. In such instances the holders of such Shares will be allowed to vote at the meeting of ordinary Shareholders at which the proposed variation is considered, provided their votes may not carry any special rights or privileges and they shall be entitled to one vote for each Share that they hold, and provided that their total voting right at such a general or annual general meeting may not exceed 24.99% of the total voting rights of all Shareholders at such a meeting. No resolution of Shareholders will be proposed or passed, unless a special resolution of the holders of the Shares in that class approved the amendment and the provisions of this MoI relating to a general meeting shall, with the necessary changes, apply to any such separate general meeting except that: the necessary quorum will be a Shareholder or Shareholders of the class present in person, or represented by proxy and holding at least 51% of the capital paid or credited as paid in the issued Shares of that class; and at any adjourned meeting of such Shareholders, if a quorum is not present in person, or represented by proxy, those Shareholders that are present will constitute a quorum. (4) Until the Final Date and to the extent that the Company would cease to be an HDSA having Broad-Based Ownership, any special resolution contemplated in clause 2.3 above is only valid if passed with the prior written consent of the Designated Parties (which consent is in their sole and absolute discretion and which will not be capable of being challenged by any person) or as otherwise agreed by them, if that special resolution will: Despite clause 2.3, if any amendment relates to the variation of any preferences, rights, limitations and other terms attaching to any class of Shares (other than the ordinary Shares) already in issue (Other Shares), that amendment must not be implemented without: vary, amend or otherwise alter the rights attaching to any class of Shares in its Share capital;firstly, a special resolution, taken by the holders of the Other Shares at a separate class meeting; and 8

14 (c) (d) (e) (f) (g) (h) (i) (j) increase its Share capital by new Shares of such amount, or increase the number of its Shares having no par value, as it deems expedient;secondly, a special resolution taken at a meeting of Shareholders, as contemplated in clause 2.3. increase its stated capital constituted by Shares of no par value by transferring reserves or profits to the stated capital, with or without a distribution of Shares; consolidate and divide all or any part of its Share capital into Shares of larger amount than its existing Shares or consolidate and reduce the number of the issued no par value Shares; convert any Shares (whether or not having a par value) into stock and re-convert any stock into Shares of any denomination, or into Shares of no par value, provided that, where Shares are converted into stock, the Directors may from time to time, fix the minimum amount or number of units of stock transferable, with the power, nevertheless at their discretion, to waive any such restrictions in any particular case; increase the number of its issued no par value Shares without an increase of its stated capital; subdivide its Shares, or any of them, into Shares of smaller amount than is fixed by this MoI; convert all of its ordinary or preference Share capital consisting of Shares having a par value into stated capital constituted by Shares of no par value; cancel any of its Shares; and convert any Shares in the capital of the Company to Shares of a different class, whether issued or not, and in particular (but without derogating from the generality of the aforegoing) convert ordinary Shares or preference Shares to redeemable preference Shares. In instances where the holders of such Other Shares are allowed to vote at a general or annual general meeting, they will be allowed to vote at such meeting, subject to the restrictions set out in clause 4.3(4). [LR 10.5(e)] (5) An amendment contemplated in clause 2.3 or 2.3 may take the form of: a new MoIMemorandum of Incorporation in substitution for the existing MoIMemorandum of Incorporation; or one or more alterations to the existing MoI.Memorandum of Incorporation by: (i) (ii) (iii) changing the name of the Company; [LR10.5(d)(vii)] deleting, altering or replacing any of its provisions; or inserting any new provisions. (4) Amendments to this Memorandum of Incorporation include, but are not limited to: 9

15 (c) (d) (e) (f) (g) (h) the creation of any class of Securities; the variation of any preferences, rights, limitations attaching to any other class of Securities; the conversion of one class of Securities into one or more other classes; the increase in the number of Securities of a class; consolidation of Securities; sub-division of Securities; conversion of shares from par value to no par value; and making any combination of such alterations. [LR 10.5(d)] (5) (6) (6) After amending its MoIMemorandum of Incorporation, the Company must file a Notice of Amendment with the Commission in accordance with the requirements contemplated in sections 16(7) and (8). (7) An amendment to this MoIMemorandum of Incorporation takes effect: in the case of an amendment that changes the name of the Company, on the date set out in the amended registration certificate issued by the Commission; or in any other case, on the later of: (i) (ii) the date on, and time at, which the noticenotice of amendmentamendment is filed with the Commission; or the date, if any, set out in the noticenotice of amendmentamendment. (7) (8) Preferences, rights, limitations or other terms of any class of Shares of the Company may not be varied and no resolution may be proposed to or passed by Shareholders for rights to include such variation in response to any objectively ascertainable external fact or facts as provided for in sections 37(6) and (7) of the Act. [LR 10.5(g)] The board s power does not have the authority to make, amend or appeal rules as contemplated inrepeal any necessary or incidental rules relating to the governance of the Company in terms of section 15 of the Act is prohibited. [LR 10.4] 2.4 Alterations of MoI and Company rulesmemorandum of Incorporation, translations and consolidations of MoIMemorandum of Incorporation [s 17; s 17; s 17 (6); s 152(6)] The Company s board, or an individual authorised by the board, may alter this MoIthe Company s Memorandum of Incorporation, in any manner necessary to correct a patent error in spelling, punctuation, reference, grammar or similar defect on the face of the document, by: delivering a notice of the alteration by publishing it on the Company s website; andcopy of the amendment or repeal thereof to every Shareholder by hand, by ordinary mail (at such Shareholder s registered address) or by 10

16 publishing in the press in a newspaper circulating in the area in which the Company s registered office is located. Alternatively, delivery may be by , provided that the Shareholder has given the Company an address for the purposes of receiving communications; and filing a notice of the alteration with the Commission. At any time after having filed its MoIMemorandum of Incorporation with the Commission, the Company may file one or more translations of it, in any official language or languages of the RepublicSouth Africa, provided that every such translation must be accompanied by a sworn statement by the person who made the translation, stating that it is a true, accurate and complete representation of the MoIMemorandum of Incorporation. At any time after having filed its MoIMemorandum of Incorporation with the Commission, and having subsequently filed one or more alterations or amendments to it, the Company may (or if the Commission requires it to, must) file a consolidated revision of its MoIMemorandum of Incorporation, as so altered or amended, provided that every such consolidated revision filed with the Commission in terms of clause 2.4 must be accompanied by: a sworn statement by a Director; or a statement by an attorney or notary public, stating that it is a true, accurate and complete representation of the Company s MoIMemorandum of Incorporation, as altered or amended up to the date of the statement. (4) To the extent necessary to implement an adopted business rescue plan and provided that the business rescue plan was approved by the Shareholders, as contemplated in section 152(c), the practitionerpractitioner may in terms of section 152(6) amend this MoIMemorandum of Incorporation to authorise, and determine the preferences, rights, limitations and other terms of, any Securities that are not otherwise authorised, but are contemplated to be issued in terms of the business rescue plan, despite any provision of this MoIMemorandum of Incorporation or of sections 16, 36 or 37, to the contrary. 2.5 Public company provisions [s 8] The Company is a public company and is listed on the JSE; and (c) Shares Securities for which listing is sought must be fully paid up; [LR 10.2] there is no restriction on the transferability of any Securities of the Company;, save as required by Law; [LR 10.2] and it is not prohibited from offering any Securities to the public. The Company, being a public company: must comply with all of the extended accountability requirements contained in Chapter 3 of the Act; and will be and have its Securities subject to Part B and Part C of the Act and, including the Takeover Regulations (as defined by the Act). 11

17 In addition to the public company provisions, the Company will also be an HDSA, at all times prior to the Final Date Securities of the Companycompany Shares [s36; s 36; s 38; s 36; s 39; s 41; s 44; s 47; s 49; s 51] The Company is authorised to issue the following Shares: Number Class ordinary Shares havingwith a par value of R0.01 per shareshares Each Share entitles the holder to the rights attaching to the particular class of Share set out in this clause 3.1. Each ordinary Share shall rank pari passu [LR 10.5] and entitles the holder to: (i) (ii) (iii) vote on any matter to be decided by a vote of the ordinary Shareholders on the basis contemplated in clause 4.3; participate in any distribution to the ordinary Shareholders; and participate in the distribution of the residual value of the Company upon its dissolution. Subject always to: clauses 3.1(5), 3.1(6) and 3.1(7); and the prior approval of the Shareholders of the Company in general meeting and the JSE, thethe Company s board is authorised to issue Sharesunissued equity Securities for cash and/or grant options to subscribe for unissued Shares in accordance withequity Securities, provided those Securities (or options) are first offered to the existing holders of equity Securities in proportion to their existing holdings. Only to the extent that those Securities (or options) are not taken up by the holders of equity Securities under the offer may they then be issued for cash to other persons or otherwise than in the proportion mentioned above. These provisions shall not apply: (c) where the equity Securities (or options) are to be issued for the acquisition of assets (other than cash); or to the extent that the JSE has waived these requirements; or to the extent that the holders of equity Securities have provided their authorisation by way of an ordinary resolution (as contemplated in the Listings Requirements at any time, but only within the classes, and only to the extent that the Shares have been authorised by or in terms of this MoI, provided that until the Final Date, the Company will not issue any further 12

18 Shares, options or instruments which are by nature equity to any person (be it under the EEPS, any management incentive scheme of the Company or otherwise), to the extent that the Company would cease to be an HDSA having Broad-Based Ownership as a result thereof.). Any such approval may be in the form of a general authority to the Directors, whether conditional or unconditional, to allot or issue any Sharesequity Securities or grant options to subscribe for unissued equity securities in their discretion, or in the form of a specific authority in respect of any particular allotment or issue of Sharesequity Securities or grant of options. If any such approval is given in the form of a general authority to the Directors, it shall be valid only until the next annual general meeting but it may be varied or revoked by any general meeting of the Company prior to the holding of the next annual general meeting. [LR 10.1 and 10.9] (4) (5) Any issue of Securities other than equity Securities or the granting of any options to subscribe for any unissued non-equity Securities is subject to the prior approval of the Shareholders of the Company in general meeting and the JSE, if necessary. Any such approval may be in the form of a general or specific authority to the Directors, as contemplated in clause 3.1(c), with the necessary changes. [LR 10.1 and LR 10.9] (4) Notwithstanding clauseclauses 3.1 and 3.1(4), any issue of Shares or any Securities convertible into Shares, or grant of options contemplated in terms of section 42, or a grant of any other rights exercisable for Securities, must be approved by a special resolution of the Shareholders, if the Shares, Securities or options are issued to a: (c) director, future director, prescribed officer, or a future prescribed officer of the Company; person related or inter-related to the Company, or to a director or prescribed officer of the Company; or nominee of a person contemplated in clause 3.1(45) and 3.1(45). (5) Any HDSA to whom any further Shares, options or instruments which are by nature equity in the Company are issued in accordance with this MoI must, until the Final Date, be an HDSA approved in writing by the Designated Parties (in their reasonable discretion and having due regard to the board's recommendations), unless that issue is to: BEE Holdco (provided BEE Holdco is an HDSA); or any HDSA employees of the Company (or its subsidiaries) under the EEPS or any management incentive scheme of the Company. (6) Any issue of unissued Shares in terms of clause 3.1 will first be offered to existing Shareholders pro rata to their Shareholding unless Shares were issued for an acquisition of assets or the JSE approves otherwise. (7) The Company may not undertake any rights offer for its Shares until the Final Date, without the prior written approval of the Designated Parties to the extent that the Company would cease to be an HDSA having Broad-Based Ownership. (6) (8) The authority of the board to increase or decrease the number of authorised Shares of any class, to reclassify any classified Shares that have been authorised but not issued, to classify any unclassified Shares that have been authorised but 13

19 not issued, or to determine the preferences, rights, limitations or other terms of any class of Shares, is restricted or varied in the manner contemplated in clauseclauses 2.3(31) and clause 2.3(4).2.3, and must be exercised in accordance with the Listings Requirements. [LR 10.9(c)] Shares may only be issued within the classes and only to the extent that the Shares have been authorised by or in terms of this Memorandum of Incorporation. (9) Preferences, rights, limitations or other terms of any class of Shares of the Company may not be varied, and no resolution may be proposed to Shareholders for rights to effect such variation, in response to any ascertainable external facts or facts as provided for in section 37 (6) and (7) of the Act. (10) The authority of the board to authorise the Company to provide financial assistance by way of a loan, guarantee, the provision of security or otherwise to any person in relation to the purchase of any Securities or the subscription of any option or security of the Company or a related or inter-related company, subject to the provisions of section 44, is not restricted or varied by this MoI. (7) (8) (11) Subject to clauses 3.1, 3.1 (4), and 3.1(65) and the provisions of section 47, the board may approve the issuing of any authorised Shares of the Company as capitalisation Shares or the issuing of Shares of one class as capitalisation Shares in respect of Shares of another class and may permit Shareholders to elect to receive a cash payment in lieu of a capitalisation Share.share. [LR 10.6] (12) Subject to the provisions of sections 46 and 48 and the Listings Requirements, the board may determine that the Company will acquire a number of its own Shares provided that such resolution by the board: is approved by a special resolution of the Shareholders, if any Sharesshares are to be acquired by the Company from a director or prescribed officer of the Company, or a person related to a director or prescribed officer of the Company; and is subject to the requirements of sections 114 and 115 if, considered alone, or together with other transactions in an integrated series of transactions, it involves the acquisition by the Company of more than 5% of the issued Sharesshares of any particular class of the Company s Shares,shares. [LR 10.9] only, until the Final Date, with the prior written approval of the Designated Parties to the extent that the Company would cease to be an HDSA having Broad-Based Ownership. (9) (13) Subject to the provisions of sections 46 and 48 and the Listings Requirements the Company may determine that it will acquire shares in its holding company, if any, and in any subsidiary of any such holding company provided that: not more than 10%, in aggregate, of the number of issued shares of any class of shares of the holding company may be held by, or for the benefit of, all of the subsidiaries of the holding company, taken together; and no voting rights attached to those shares may be exercised while the shares are held by the Company, and it remains a subsidiary of the holding company whose shares it holds,only, until the Final Date, with the prior written approval of the Designated Parties to the extent that that the Company would cease to be an HDSA having Broad-Based Ownership. [LR 10.9] 14

20 (10) (11) (12) (14) The Company may not pay commission exceeding 10% to any person in consideration for their subscribing or agreeing to subscribe, whether absolutely or conditionally, for any Securities of the Company. [LR 10.14] Securities of the Company are to be issued in either certificated or uncertificated form. (15) A certificate evidencing any certificated Securities of the Company: must state on its face: (i) (ii) (iii) (iv) (v) the name of the Company; the name of the person to whom the Securities were issued; the number and class of Securities and the designation of the series, if any, evidenced by that certificate; a number distinctive for each certificate; and any restriction on the transfer of the Securities evidenced by that certificate, provided that any Securitiesshare certificate issued by the Company as a pre-existing company will not be invalidated solely by reason of it failing to comply with these requirements; (c) must be signed by two persons authorised by the board; and is proof that the named Security holder owns the Securitiessecurities, in the absence of evidence to the contrary. (13) (14) (15) (16) (16) A signature contemplated in clause 3.1(1512) may be affixed to or placed on the certificate by autographic, mechanical or electronic means. (17) Every person who holds Securities in certificated form and whose name is entered as a Securities holder in the register is entitled, without payment, to receive one certificate for all their Securities of any one class, but the Directors are entitled to charge for the reasonable costs of every subsequent certificate issued in respect of a withdrawal requested in terms of clause 3.1(2221). A Securities holder, who has transferred a part of his or her holding of Securities of any class, is entitled to receive a certificate free of charge for the balance of theirhis or her Securities holding. (18) If a Securities certificate is defaced, lost or destroyed, it may be replaced on payment of any duty payable on the new certificate and on such terms (if any) as to evidence, indemnity and payment of the out-of-pocket expenses of the Company of investigating such evidence and, in the case of loss or destruction, of advertising the same, as the board may think fit and, in the case of defacement, on delivery of the old certificate to the Company. Subject to clause 3.1(17), the Company must enter in its Securities register every transfer of certificated Securities, including in the entry: the name and address of the transferee; the description of the Securities or interest transferred; 15

21 (c) (d) the date of the transfer; and the value of any consideration still to be received by the Company on each Security or interest, in the case of a transfer of Securities contemplated in sections 40(5) and (6). (17) (19) The relevant provisions contained in Part E of Chapter 2The Company may make an entry contemplated in clause 3.1(16) only if the transfer: is evidenced by a proper instrument of transfer in a form and substance satisfactory to the board that has been delivered to the Company; or was effected by operation of Law. (18) The provisions of the Act shallwill apply to thein respect of the issuance and transfer of uncertificated Securities of the Company. In particular: (c) (d) (e) the holders of uncertificated Securities in the Company shall not be entitled to Securities certificates and the Company shall not issue certificates evidencing or purporting to evidence title to uncertificated Securities of the Company, subject to clause 3.1(2221); in the event of a withdrawal referred to in clause 3.1(2221), Securities certificates shall be issued in terms of the provisions of this clause 3.1(17); upon entry of the name of a person into the sub-register, that person shall become a Securities holder and will be recognised as such in respect of the uncertificated Securities registered in their name; transfer of ownership and Securities holding in accordance with clauses 3.1(1918) and 3.1(1918)(c) will occur notwithstanding any fraud or illegality which may affect the uncertificated Securities in respect of which the transfer was effected or which may have resulted in the transfer being effected provided that a transferee who was party to or had notice of such fraud or illegality may not rely on the provisions of this clause 3.1(1918)(d); the Company shall be liable to the ParticipantCSDP for the fee prescribed from time to time in terms of the provisions of the Act in respect of the transfer of ownership in uncertificated Securities; (19) (20) The Company shall be entitled to allow the dematerialisation of any of its Securities. Once such dematerialisation has been allowed: any new Securities that are issued may be issued in uncertificated form if so requested by the subscriber to those Securities; or Securities holders may dematerialise Securities already issued into uncertificated Securities, in such manner as may be decided by the Directors from time to time. (20) (21) (21) Securities that are dematerialised as contemplated in clause 3.1(2019) will have the same rights as attached to such Securities prior to their dematerialisation. (22) If a Securities holder wishes to rematerialise all or part of his uncertificated Securities held by the ParticipantCSDP and to obtain a certificate in respect of such uncertificated Securities they should notify the ParticipantCSDP accordingly. 16

22 (22) (23) (24) (25) (23) The ParticipantCSDP shall, within seven5 business days of receipt of the notification referred to in clause 3.1(2221), notify the Company to provide a certificate and shall remove the uncertificated Securities so rematerialised from the sub-register. (24) The Company shall immediately upon receipt of the notification from the ParticipantCSDP, enter the necessary details of the Securities holders and their Securities holding into the register and indicate in the register that the uncertificated Securities so rematerialised are no longer held in uncertificated form. (25) The Company will within, ten10 business days if the relevant Securities holder is a resident of the RepublicSouth Africa and 20 business days if the relevant Securities holder is not a resident of the RepublicSouth Africa, of receipt of the notification from the ParticipantCSDP, prepare and deliver to the relevant Securities holder a certificate and notify the CSDP that those Securities are no longer held in uncertificated form. (26) Where two or more persons are registered as the holders of any Securities, in either certificated or uncertificated form, they shall be deemed to hold those Securities jointly, and: (c) (d) (e) notwithstanding anything to the contrary in this MoIMemorandum of Incorporation, on the death, sequestration, liquidation or legal disability of any one of such joint holders, the remaining joint holder(s) may be recognised, at the discretion of the Directors, as the only person(s) having title to such Securities; any one of such joint holders may give effectual receipts for any distributions, bonuses or returns of capital or other accruals payable to such joint holders; only the joint holder whose name stands first in the register shall be entitled to delivery of the certificate relating to those Securities, or to receive notices from the Company. In case of the legal incapacity of any one or more of the joint registered holders of any Security, the survivor then named first in the register will be the only person recognised by the Company as being entitled to such certificate, or any new certificate which may be issued in its place. Any notice given to such joint holder shall be deemed to be notice to all the joint holders; any one of the joint holders of any Securities conferring a right to vote may vote either personally or by proxy at any meeting in respect of such Securities as if he were solely entitled thereto, and if more than one of such joint holders is present at any meeting, either personally or by proxy, the joint holder who tenders a vote and whose name stands in the register before the other holders who are present in person or by proxy, shall be entitled to vote in respect of those Securities; and the Company shall be entitled but not obliged to refuse to register more than five persons as the joint holders of a Securities. (27) The Company shall not claim a lien on any Securities issued by the Company. (26) (28) All authorities to sign transfer deeds granted by holders of Securities holdersin the Company for the purpose of transferring Securities that may be lodged, produced or exhibited with or to the Company at any of its transfer offices shall, as between the Company and the grantor of such authorities, be taken and deemed to continue and remain in full force and effect, and the Company may allow the same 17

23 to be acted upon until such time as express notice in writing of the revocation of the same shall have been given and lodged at the Company s transfer office at which the authority was lodged, produced or exhibited. Even after the giving and lodging of such notices,notice the Company shallwill be entitled to give effect to any instruments signed under the authority to sign, and certified by any officer of the Company, as being in order before the giving and lodging of such notice. [LR 10.2] (27) (28) Shareholders may provide the Company with an address either in South Africa or elsewhere to be inserted in the Securities register. [LR 10.18] The Company is prohibited from claiming a lien on any Securities issued by the Company. [LR 10.12] 3.2 Debt Instruments [s 43] The authority of the Company s board to authorise the Company to issue secured or unsecured debt instruments at any time, is not restricted or varied by this MoIMemorandum of Incorporation. The Companyboard shall not grant special rights to holders of debt instruments relating to attending and voting at general meetings and the appointment of Directors or any rights of a similar nature. [LR 10.10] 3.3 Registration of Beneficial Interests [s 56] The authority of the Company s board to allow the Company s issued Securitiessecurities to be held by, and registered in the name of, one person for the beneficial interestbeneficial Interest of another person, is not restricted or varied by this MoIMemorandum of Incorporation Shareholders Shareholders right to information [s 26] Other than the rights to access information set out in section 26, a Shareholder has no additional rights to information pertaining to the Company. 4.2 Shareholders authority to act [s 57; s 57(4); s 60] Shareholders resolutions required only in terms of the ListingsListing Requirements may not be voted on in writing by Shareholders entitled to exercise voting rights, as contemplated in section 60 of the Act. [LR 10.11(c)] 4.3 Votes of Shareholders [s 63(4), (5), (6) and (7); s 57(5) and (6)] Subject to the Act and subject to any special terms as to voting upon which any Share may be issued or may for the time being be held, if voting on a particular matter is: by a show of hands, any person present and entitled to exercise voting rights has one vote, irrespective of the number of voting rights that person would otherwise be entitled to exercise; and by polling, any person who is present at the meeting, whether in person or by proxy, and is entitled to exercise voting rights has one vote per ordinary Share.share. [LR 10.5] 18

24 The holders of any other Securities other than ordinary Shares or any special Shares created for the purposes of Black Economic Empowerment shall not be entitled to vote on any resolution taken by the Company save as expressly provided for in clauses 2.3 and clause 3.1. In such instances, their votes may not carry any special rights or privileges and they shall be entitled to one vote for each Share that they hold, provided that their total voting right at such a general or annual general meeting, may not exceed 24.99% of the total voting rights of all Shareholders at such a meeting.voting must be by way of a poll. A polled vote must be held on any particular matter to be voted on at a meeting if a demand for such a vote is made by: (c) at least five persons having the right to vote on that matter, either as a Shareholder or a proxy; a person who is, or persons who together are, entitled, as a Shareholder or proxy, to exercise at least 10% of the voting rights entitled to be voted on that matter; or the chairperson of the meeting. (4) (5) (4) If a poll is demanded, it shall be taken in such manner and at such place and time as the chairperson of the meeting directs, either immediately or after an interval or adjournment (not exceeding seven days). Scrutineers must be elected to count the votes and to declare the result of the poll. The scrutineers declaration, which shall be announced by the chairperson of the meeting, will be deemed to be the resolution of the meeting at which the poll was demanded. In case of any dispute as to the admission or rejection of a vote, the chairperson of the meeting shall determine the same, and the determination of the chairperson made in good faith shall be final and conclusive. The holders of any Securities other than ordinary Shares or any special Shares created for the purposes of black economic empowerment in terms of the BEE Act and BEE Codes shall not be entitled to vote on any resolution taken by the Company, save as may be expressly provided for in clauses 2.3 and 3.1 (as the latter may be amended from time to time). In such instances, their votes may not carry any special rights or privileges and they shall be entitled to one vote for each Share that they hold, provided that their total voting right at a general or annual general meeting may not exceed 24.99% of the total voting rights of all Shareholders at such meeting. [LR 10.5(c)] In the case of an equality of votes, whether on a show of hands or a poll, the chairperson of the meeting at which the show of hands takes place, or at which the poll is demanded, shall be entitled to a second or casting vote.joint holders of a Share, only the vote of the senior holder shall be accepted, whether in person or by proxy. For the purpose of this clause, seniority shall be determined by the order in which the names appear in the register or, in the case of persons entitled to a Share by transmission, the order in which their names were given in the notice to the Company of that transmission. (6) The demand for a poll shall not prevent the continuation of a meeting for the transaction of any business other than the question upon which the poll has been demanded. The demand for a poll may be withdrawn. (6) (7) Any entity holding Shares conferring the right to vote may, by resolution of the Directorsdirectors or other governing body of that entity, authorise one person to act as its representative at any Shareholders meeting. The representative shall be entitled to exercise the same powers as that entity could exercise if it were an 19