Foreign Exchange Transactions General Conditions



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Transcription:

Foreign Exchange Transactions General Conditions The parties to this agreement are referred to herein as "we/us" (meaning the natural or juristic person, as may be applicable, who from time to time may conclude transactions, as defined below, with The Standard Bank of South Africa Limited subject to the terms and conditions of this agreement) and "you" (meaning The Standard Bank of South Africa Limited). 1. We acknowledge that this agreement governs the relationship between you and us with regard to all purchases from you by us, or sales to you by us, of: 1.1 currency options (hereinafter referred to as "Options"); or 1.2 foreign currency (i) for forward delivery via forward exchange contract; (ii) for spot delivery (value given after two business days); (iii) for one day delivery (value given after one business day); (iv) same day delivery and/or (v) in any other manner than contemplated in (i) to (iv) above (hereinafter referred to as "Foreign Exchange Rate Transactions"). Any such purchases and/or sales will hereinafter collectively be referred to as "transactions". In this agreement a reference to "days" shall be construed as calendar days unless qualified by the word "business", in which instance a "business day" shall be any day (other than a Saturday, Sunday or gazetted public holiday in the Republic of South Africa). Any reference to time shall be based upon South African Standard Time. 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. We understand and accept that each time we enter into a transaction with you, we will be deemed to have represented to you in respect of such transaction on the date of the conclusion thereof that (absent written agreement between you and us that expressly imposes affirmative obligations to the contrary for such transaction): 2.1 we are acting for our own account and have made our own independent decisions to enter into such transaction and have given thorough consideration as to whether such transaction is appropriate or proper for us based upon our own judgment and upon advice from such advisors as we have deemed necessary; 2.2 we are not relying on any communication (written or verbal) from you as investment advice or as a recommendation to enter into such transaction, it being understood that information and explanations related to the terms and conditions of such transaction shall not be considered investment advice or a recommendation to enter into such transactions; and 2.3 we have not, and will not, receive any assurance or guarantee from you (and no communication (written or oral) received from you shall be deemed as such) as to the expected results of any transactions. We understand and accept that you shall neither act as a fiduciary for nor as an adviser to us in respect of any transaction. 3. We warrant that we are capable of assessing, evaluating and understanding (on our own behalf or through independent professional advice) the merits, terms, conditions and risks of transactions, and will each time upon having concluded a transaction, be deemed to have assessed, evaluated, understood and accepted such terms, conditions and risks. We warrant that we are also capable of assuming, and will each time upon having concluded a transaction assume, the financial and other risks of transactions. 4. From time to time we will request you by telephone or otherwise to conclude transactions with us. The settlement instruction for each: 4.1 exercised Option and each Foreign Exchange Rate Transaction will be made in writing or electronically to you at least two business days before the settlement date of such transaction; 4.2 transaction in terms of which value is given the same day as the conclusion of such transaction will be made in writing or electronically to you on such very same day; and 4.3 transaction in terms of which value is given the business day following the day of conclusion of the transaction will be made in writing or electronically to you on the day of the conclusion of the transaction. 5. The transaction will be valid and enforceable on both you and us whether we conclude it with you verbally or in writing over any medium. You may record the conclusion of any such transaction, as well as any instruction of ours given, over a telephone. Whether or not telephonically recorded, we accept that we are bound by the transaction concluded or the instruction given to you, as may be applicable. Page 1 of 6

6. We acknowledge that you will give us notification confirming the details of the concluded transaction by a mutually agreed medium, whether it is via fax, e-mail, SWIFT or any other electronic medium. We undertake to confirm our agreement with the details of the transaction as specified in the notification by signing each notification received via fax or confirming our agreement with each notification received via e-mail, SWIFT or any other electronic medium, and sending it back to you within 24 hours of the transaction being concluded. Our failing to do so, whilst being a breach of our said undertaking, will not in any way impair or negate the validity and enforceability of the transaction. We acknowledge that, should we not for any reason receive a notification from you confirming the details of the concluded transaction within 24 hours of the transaction having been concluded, such non-receipt of the notification will not in any way impair or negate the validity and enforceability of the transaction and further agree that it shall be our responsibility to request and obtain such notification from you. In the event of us confirming our agreement with the details of a transaction specified in a notification via an electronic medium, including e-mail, we acknowledge that you have no way of positively identifying whether such confirmation originates from us, or an entity properly authorised to act on our behalf, and as a result of these circumstances we agree to be bound by, and authorise you to accept and act upon, any electronic confirmation which you in your sole discretion determine to originate from us. We acknowledge that, should either party to this agreement become aware of any information in respect of a transaction which it has reason to believe is inconsistent with the other party's information in respect of such transaction, it will call such information to the attention of the other party. Should you, upon further investigation, discover that an error has occurred in respect of such transaction, we acknowledge and agree that such error, whether resulting in a profit or loss to us, shall be corrected, and we irrevocably authorise you to debit or credit our current account in your books, as well as any other account we may have with a financial institution other than you, in such manner and extent as to place us in the same position we would have been had the error not occurred. 7. We are entitled to extend on a swap basis any transaction or any portion of any transaction, provided that: 7.1 such extension is allowed in terms of the South African Exchange Control Regulations and Rulings; and 7.2 we give you written notice of our intention to do so at least two business days before the transaction matures, and provide you with details of such extension; however 7.3 with regard to the notification as referred to in 7.2 above, we acknowledge and understand that: 7.3.1 should we be a direct dealing customer, having been afforded direct dealing facilities by yourselves and thus being able to execute transactions directly with your foreign exchange dealers ("dealers"), we may give you telephonic, electronic or written notice; 7.3.2 should we not be a direct dealing customer, having not been afforded direct dealing facilities by yourselves and thus only being able to execute transactions with your dealers via your employee/s who will contact the dealers on our behalf, we may give you electronic or written notice only. 8. Each time we buy foreign currency from you in respect of a Foreign Exchange Rate Transaction or an exercised Option, the consideration due to you will be in Rands, US Dollars or a third currency equivalent to the amount we buy from you, as agreed upon between you and us in the transaction. 9. In the case of each sale of foreign currency we make to you in respect of a Foreign Exchange Rate Transaction or an exercised Option, the consideration due to us will be in Rands, US Dollars, or a third currency equivalent to the amount we sell to you, as agreed upon between you and us in the transaction. 10. The consideration due in terms of a transaction must be paid on the settlement date specified for each such transaction. Should we not fulfil any transaction, either in whole or in part, it may also be (as determined by you in your sole discretion) that we are liable to you or you to us for any difference in exchange between the rate applicable to the transaction and your selling or buying rate for the applicable currency in force on the settlement date of the transaction. The difference will be calculated by you on the unfulfilled portion of the transaction and in compliance with the South African Exchange Control Regulations and Rulings. In such an event, we irrevocably authorise you to debit or credit our current account in your books, as well as any other account we may have with a financial institution other than you, with the amount of the difference in exchange. You may do this without further reference to us. We furthermore authorise you to debit any SWIFT Teletransmission charges associated with a transaction against any of our aforementioned account/s. 11. We agree that each outstanding transaction will be interlinked with and indivisible from every other outstanding transaction, unless you in your sole discretion consent to have such outstanding transactions deemed as existing independent from one another. This means that all transactions will stand or fall together and: 11.1 a breach by us of any one transaction will be deemed a breach of all unsettled transactions, unless you in your sole discretion determine otherwise; and Page 2 of 6

11.2 unless we have your consent, we will not be entitled to enforce any one transaction without performing or tendering to perform all of our obligations under the remaining transactions. 12. In terms of our hedging compliance obligations specified in the South African Exchange Control Regulations and Rulings, as amended from time to time, we: 12.1 in respect of forward exchange contracts and/or Options (upon the exercise thereof) that may be concluded between us, the maturity dates or expiration dates (as may be applicable) of which occur more than 6 (six) months after the relevant date of conclusion thereof: 12.1.1 will buy foreign currency from you only for the purpose of hedging the currency risk associated with our firm and ascertained commitments due by us to non-residents of the Republic of South Africa and not for any speculative reasons; 12.1.2 will sell foreign currency to you only for the purpose of hedging the currency risk associated with firm and ascertained foreign exchange accruals to us from non-residents of the Republic of South Africa and not for any speculative reasons; 12.1.3 acknowledge that: (i) any such transactions may not be concluded in respect of an underlying commitment or accrual already covered forward; (ii) the period of cover in respect of foreign exchange accruals in terms of exports may not extend beyond 6 (six) months from the date of shipment of the relevant item being exported, except where you or the South African Reserve Bank ("SARB") have granted permission for such proceeds to be received after such 6 (six) month period; and (iii) the foreign exchange commitments or accruals being hedged in this manner must be either permissible in terms of the South African Exchange Control Rulings or specific authority in respect thereof must have been granted by the SARB; and 12.1.4 will present to you suitable documentary evidence of the relevant foreign exchange commitments or accruals at the time of establishment of each transaction confirming the existence, nature and extent of such commitments or accruals. 12.2 in respect of forward exchange contracts and/or Options (upon the exercise thereof) that may be concluded between us, the maturity dates or expiration dates (as may be applicable) of which occur 6 (six) months or less after the relevant date of conclusion thereof: 12.2.1 will buy foreign currency from you, or sell foreign currency to you, only for the purpose of hedging our direct underlying foreign exchange exposure and to manage possible losses arising from adverse movements in foreign exchange rates and not for any speculative reasons; 12.2.2 acknowledge that such hedging facilities must be required by us: (i) in respect of foreign exchange commitments or accruals which are either permissible in terms of the South African Exchange Control Rulings or in respect of which specific authority have been granted by the SARB; or (ii) in order to actively manage our foreign exchange risk exposure as it may relate to such foreign exchange commitments or accruals, be it inter alia in respect of import payments, export proceeds, service type payments, service type receipts, tenders, acquisitions, balance sheet risk and loans; 12.2.3 acknowledge that any such transactions may not be concluded in respect of an underlying foreign exchange commitment or accrual already covered forward; and 12.2.4 will present to you suitable documentary evidence of the relevant foreign exchange commitments or accruals at the time of pay away in terms of such transactions confirming the existence, nature and extent of such commitments or accruals. 12.3 should it not be necessary for us to present to you suitable documentary evidence as stipulated in 12.1.4 and 12.2.4 due to an exemption granted to us by the SARB, shall inform you thereof and provide you with suitable documentary evidence to that effect without delay. 12.4 should we have been granted authority by the SARB to purchase and/or sell foreign currency without being required to have fixed and ascertainable accruals and/or commitments or a direct underlying foreign exchange exposure, shall inform you of such authority and provide you with suitable documentary evidence to that effect without delay. 12.5 should we have been granted authority by the SARB as envisioned in 12.4 above, shall not exceed the limit authorised by the SARB with regard to the amount of foreign currency purchased by us from you, or sold by us to you. We agree, in respect of forward exchange contracts and/or Options (upon the exercise thereof) that may be concluded between us, to retain any and all documentary evidence of the relevant foreign exchange commitments or accruals for a period of at least 5 (five) years. 13.1 You are entitled to summarily cancel any or all transactions which settlement dates are still to fall due and also claim from us any damages as you may suffer in consequence thereof, if: Page 3 of 6

13.1.1 we in any way breach our obligations under any transaction; or 13.1.2 we are in breach of any provision of this agreement which imposes an obligation/s on us; or 13.1.3 we sustain a change in shareholding that you deem as material and/or in conflict with any of your internal policies (including, but not limited to, any compliance policies); or 13.1.4 we take steps to deregister ourselves or are deregistered; or 13.1.5 we commit an act which would be an act of insolvency as defined in the Insolvency Act 24 of 1936; or 13.1.6 we allow any judgment against us to remain unsatisfied for a period of 7 (seven) days, unless we provide you with suitable evidence that an appeal has been noted against such judgment; or 13.1.7 we compromise or attempt to compromise or defer payment of any debt owing to any of our creditors; or 13.1.8 we are placed under any provisional or final order of judicial management or winding-up, other than for the purposes of an amalgamation or reconstruction approved by you. 13.2 We acknowledge and agree that all unperformed obligations arising out of transactions subject to this agreement shall, upon the sequestration or liquidation of our estate, as may be applicable, terminate automatically at the date of sequestration or liquidation, the values of those obligations shall be calculated by you at market value as at that date, the values so calculated shall be netted and the net amount, as calculated by you, shall be payable by either you to us or by us to you, as may be applicable. In the event of you and us being, or should you and us become, parties to: (i) a 1992 or 2002 ISDA Master Agreement as published by the International Swaps and Derivatives Association, Inc. ("ISDA"); or (ii) another agreement (which complies with the requirements stipulated by Section 35B of the Insolvency Act 24 of 1936) pertaining to transactions as defined in this agreement, (either the agreements referred to in (i) and (ii) shall herein generally be referred to as the "Master") and should any of the terms and conditions of this clause 13 run counter to any of the terms and conditions of the Master, this clause 13 shall be deemed to be pro non scripto, but without affecting, impairing or invalidating any of the remaining provisions of this agreement which shall continue to be of full force and effect. 14 Any security we have given or may give to you for any indebtedness owing to you will also be deemed as security for all obligations that we may occasionally owe you for any transaction concluded pursuant to these arrangements, unless you are holding security given by us to you which is being held for a specific purpose and/or transaction. 15 This agreement also covers the conclusion of transactions by other people and/or entities on our behalf, whether such people are employed by us, or whether such people and/or entities are appointed by us as agents to execute transactions as envisioned in this agreement on our behalf. 16 We understand, in respect of transactions concluded telephonically, that you will make all reasonable efforts to verify the identity of the caller before going ahead with a transaction, and that you have no way of positively identifying the voices of the individual people authorised to conclude such transaction on our behalf. In these circumstances you cannot be held liable for any loss, whether direct or indirect and whether suffered by you or us, arising from your reliance on an instruction from any unauthorised individual purporting to act on our behalf managing to conclude a transaction with you. We are responsible for ensuring that anyone dealing on our behalf will be properly authorised to do so. We will ensure that all such persons will be informed of this agreement and that their dealings with you are considered to be our dealings. They will also be informed that their actions will legally bind us. 17 In the event of you and us being, or should you and us become, parties to a Master: 17.1 the definitions and provisions contained in the 1998 FX and Currency Option Definitions (as published by ISDA, the Emerging Markets Traders Association and The Foreign Exchange Committee) shall be incorporated into each notification confirming the details of the concluded transaction (being the Confirmation, as defined in such Master). In the event of any inconsistency between those definitions and provisions and the Confirmation, the Confirmation will prevail; 17.2 the relevant transaction, and Confirmation relating to such transaction, will supplement, form part of and be subject to such Master and will constitute a single agreement between you and us; 17.3 the relevant Confirmation will prevail in the event of there being any inconsistency between the such Confirmation and the Master; Page 4 of 6

17.4 the Disruption Events (as such terms are defined in the 1998 FX and Currency Option Definitions) that will apply to the particular transaction to which the relevant Confirmation relates shall, unless otherwise specified in such Confirmation, be General Inconvertibility and General Non-Transferability, and Calculation Agent Determination of Disruption Event shall be applicable; 17.5 the Disruption Fallbacks that will apply to the Disruption Events mentioned in 17.4 shall, unless otherwise specified in the relevant Confirmation, be Non-Deliverable Substitute and Settlement Postponement (the Maximum Days of Disruption for this Disruption Fallback to be 2 (two) Business Days) (as such terms are defined in the 1998 FX and Currency Option Definitions); and 17.6 the (i) respective accounts for payments to you and us, and the (ii) respective Offices (as defined in the Master) of you and us; shall be as agreed between you and us from time to time in respect of the particular transaction in question. 18 From time to time you and/or us may agree to terminate certain transactions concluded between you and us. In consideration for the termination of each party's respective rights and obligations under and in respect of such transactions we may be liable to pay to you or you may be liable to pay to us (as may be applicable, and as determined by you) an amount of money (the "Termination Payment"), if any, such payment to be made by means of deposit of such amount into such bank account of either you or us as may be agreed upon from time to time between us. Upon you and us having agreed to terminate such transaction/s, we acknowledge that you will send to us a notification confirming such termination (the "Termination Confirmation"), and in this respect acknowledge that the provisions of 6. above shall apply mutatis mutandis. Upon payment of the Termination Payment having been effected, SBSA and the Counterparty shall be deemed to have agreed, as of the date agreed between you and us, that: (i) (ii) (iii) the relevant transactions are terminated in so far as that all of your and our respective rights and obligations in terms thereof are cancelled and terminated; either party to such transactions releases and discharges the other from, and agrees not to make any claim against the other with respect to, any obligations of the other arising and to be performed in connection with the transactions; and no amounts are owed by either you or us to the other under the transactions. 19 From time to time you and/or us may agree to amend certain transactions concluded between you and us. Upon you and us having agreed to amend such transaction/s, we acknowledge that you will send to us a notification confirming such amendment (the "Amendment Confirmation"), and in this respect acknowledge that the provisions of 6. above shall apply mutatis mutandis. Should in consideration for the amendment of each party's respective rights and obligations under and in respect of such transactions a payment be due by either party to the other, we shall pay to you or you shall pay to us (as may be applicable, and as determined by you) the relevant amount of money (the "Amendment Payment"), such payment to be made by means of deposit of such amount into such bank account of either you or us as may be agreed upon from time to time between us. Upon payment of the Amendment Payment having been effected, any remaining amounts that are owed by either SBSA or the Counterparty to the other under the transactions, in the currency that it is due, shall remain due and payable. 20 No addition to or variation of this agreement shall be of any force or effect unless: (i) in writing and signed by or on behalf of you and us; or (ii) agreed to by you and us by means of a mutually agreed electronic medium, whether it is via e-mail, SWIFT or any other electronic medium, it being acknowledged by us that you have no way of positively identifying whether such agreement indeed originates from us, or an entity properly authorised to act on our behalf, and as a result of these circumstances we agree to be bound by, and authorise you to accept and act upon, any electronic agreement which you in your sole discretion determine to originate from us. 21 The terms and conditions set out in this agreement are deemed to be incorporated in and applicable to each transaction concluded between us pursuant to these arrangements. This includes any existing transactions which settlement dates are still to fall due. Each transaction is subject to South African law, South African Exchange Control Regulations, Orders and Rulings, and prevailing international and South African banking practice. 22 This agreement shall be interpreted in accordance with, and governed in all respects by, the laws of the Republic of South Africa. The South Gauteng High Court, Johannesburg, shall have non-exclusive jurisdiction for the purpose of all or any legal proceedings arising from or concerning this agreement. Page 5 of 6

By signing this agreement, the entity (natural and juristic persons included) on whose behalf we act will be bound by it and considered to be party to it. Signed on behalf of: Authorised signatory Authorised signatory Name Designation Date Name Designation Date The Standard Bank of South Africa Limited: Authorised signatory Name Designation Date Page 6 of 6