Guidelines for completing the Eligibility Profile for Collateral Receivers

TABLE OF CONTENT
Collateral management services .................................................................... 3 Basket reference ............................................................................... 3 TCM Service Type .............................................................................. 3 Exposure Matching Tolerance ................................................................ 4 Unilateral Instructing ......................................................................... 4 Reuse of collateral............................................................................. 4 Excess Tolerance ............................................................................... 4 Deficit Tolerance ............................................................................... 4 General eligibility criteria ........................................................................... 5 Denomination Currencies ..................................................................... 5 Cash Collateral ................................................................................. 5 Specified Securities ........................................................................... 5 Margin ........................................................................................... 5 Issuer Name..................................................................................... 5 Bonds eligibility criteria .............................................................................. 6 Issuer Type ...................................................................................... 6 Evaluated Prices ............................................................................... 6 Margin % ......................................................................................... 6 Bond Security Type ............................................................................ 6 Floating Rate Notes............................................................................ 6 Valuation Method .............................................................................. 7 Structured securities .......................................................................... 7 Pricing ........................................................................................... 7

Bonds eligibility criteria .............................................................................. 8 Industry Sectors ................................................................................ 8

Bonds Margin criteria ................................................................................. 8 Credit ratings (Security ratings and/or Issuer ratings) ......................................... 8 Rating/Time to maturity ............................................................................. 8

Bonds Concentration limits ................................................................... 8 Equities eligibility criteria .................................................................... 9

Minimum collateral value ............................................................................ 9 Industry sectors ........................................................................................ 9

Equities margin criteria ....................................................................... 9

Price age ................................................................................................ 9 Price volatility ......................................................................................... 9 Equities concentration limits ........................................................................ 9 Average trading volume ............................................................................ 10

Concentration limits: Mixed profiles (Bonds/ Money Market/ Equities) ....................11 Industry sectors ............................................................................... 11

Collateral management serv ices

Basket reference
The Basket reference is a 12 character reference that must be unique within the Collateral service. Strate recommend the following convention for the Basket reference: In a case of WXYZ Bank .. Basket 01WXYZ010713 where 01 represents the numeric basket number, 4 characters for client abbreviation, 6 character date. Standard Baskets will be 001TOP40STDB where 001 represents the numeric basket number, TOP40 is the index, and STDB = Standard Basket. A list of standard Baskets plus their risk profiles can be downloaded from the Strate website.

Please indicate, per underlying triparty contract and basket, the name and contact details of your Counterparty, as well as the triparty service type that will govern the contract (Triparty Repo Service; or Triparty Collateral Management Service). This allows you to sign a single contract, bilaterally, with Strate Ltd, listing all Counterparties you wish to establish a triparty relationship with, thus simplifying the account opening process and minimizing implementation time (associated with all three parties signing a single contract per underlying relationship). Note: A TCMS agreement can be set up as a transfer of title structure (whereby the Collateral Receiver is the owner of the collateral account) or a pledge structure. In the latter case, the Collateral Giver is the collateral account owner by default.

TCM Service Type

Select TRS REPO for Triparty Repo services Select TCMS CESSION for Triparty Collateral Management services where securities are moved via Out and Out Cession Select TCMS PLEDGE for Triparty Collateral Management services where securities are moved via Pledge instruction.

Exposure Matching Tolerance

Input the percentage up to which matching exposure amounts can differ. i.e. Should a matching tolerance of 10% be requested then should party A report an exposure of R1.0m and Party B report an exposure of R900,000-00, the Matching exposure of R900,000-00 will be accepted (undisputed amount) with R100,000-00 being the disputed amount which will not be collateralised.

Unilateral Instructing
Input Y should only one of the Parties need to report the exposure, as well as which Party will be permitted to instruct on the exposure. Input N if unilateral instructing is not allowed, meaning that both Parties are to report the exposure.

Reuse of collateral
Should you have agreed bilaterally with your counterparty that all collateral will be received via a Cession then your counterparty can also authorise you to re-use the received collateral by inputting Y or N.

Excess Tolerance
Once the Collateral service has selected the eligible collateral is valued by the system. Should the value exceed the Exposure by less or equal to the excess tolerance then the allocation will be accepted.

Deficit Tolerance
Once the Collateral service has selected the eligible collateral is valued by the system. Should the value be less than the Exposure by less or equal to the deficit tolerance then the allocation will be accepted and no further collateral will be requested.

General eligibility criteria

Denomination Currencies
Currently the Triparty Collateral Management Service will only offer currency denomination in South African Rands and will only offer dematerialised securities for collateral.

Cash Collateral
Cash is to be used as last resort after all available collateral has been exhausted based on the defined eligibility criteria.

Specified Securities
Specific ISINs may either be Included or Excluded per basket. Fill in this section if you want to override the general eligibility criteria specified in other sections of the Agreement Appendix for any number of specific securities. In addition, you can specify security margins for ISINs specifically included in this section. Any security margins added here will override the general margin criteria specified on remaining pages of this eligibility document.

Margin
Specify the required margin (Haircut) as a percentage.

Issuer Name
Select eligible Issuers that can either be Included or Excluded per basket. Please note that counterparty issues are excluded by default, based on Issuer name information received from recognised vendors of securities data.

Bonds eligibility criteria

Issuer Type
Select type of Bond/Money Market Issuers acceptable or unacceptable per basket: Sovereign Government Bonds Corporate Corporate Bonds Agency (Parastatals) Structured

Evaluated Prices
If Market prices are not available, evaluated prices could be used for collateral valuation. i.e. alternative sources of evaluated prices are used like IDC Bond evaluations or SIX Financial Information. Indicate whether evaluated prices are to be accepted Y or N.

Margin %
Specify the required margin (Haircut) as a percentage per Issuer Type.

Bond Security Type

Select eligible Bonds/Money Market Instrument Types that are acceptable or unacceptable per basket: BOND = (Straight BOND = (FRN, ESN, Perpetuity, Vanilla, CLN, Customised Instrument, Medium Term Notes) CP CD = (Commercial paper) = (Negotiable Certificate of Deposit)

BILL = Bills

Floating Rate Notes

Select Y/N should floating rate notes be excluded.

Valuation Method

Structured securities
Indicate which, if any, of the families of structured securities are eligible under this basket. Note: Any limitations applied on the Issuer of structured corporate securities in the Issuers section on page 2/8 will be considered in conjunction with any specifications on structured security types determined here.

Pricing
Indicate whether dirty prices (all in price) or clean prices are to be used to value collateral for this basket.

Bonds eligibility criteria

Industry Sectors
Please indicate which industry sectors, if any, should be EXCLUDED per bond type or across ALL Bonds.

Bonds Margin criteria

Price age - please indicate any incremental margins as a function of price quotation age and, if applicable, enter a maximum ceiling on the price age of securities as a function of Issuer type.

Credit ratings (Security ratings and/or Issuer ratings)

Either Long-term or short-term security rated Bonds can be excluded or included.

Rating/Time to maturity
Select eligible long-term and short-term security ratings per Issuer type and, if applicable, indicate a margin % and maximum time to maturity. Extra margin % can be specified based on rating time to maturity based on the Issuer type.

Bonds Concentration limits

A % limit can be placed on ALL Bonds or concentration limits can be applied as a function of a specific Issuer type or Bond type. Limits can be defined as follows:

Issuer limit total limit);

- Applies to each Issuer of a security, (therefore more restrictive than a

Bond type limit

- Applies to each security per type of Bond;

The concentration limits percentage is always calculated against the base amount, which is Max {Exposure amount; Collateral value of allocated collateral}.

The specification of ALL Bonds = 50%, Sovereign = 25%" means, only half of the Bonds allocated can be Sovereign. A concrete example, for an exposure of R100,000,000 (which

is covered at 100%), maximum R50mio of Bonds is allowed as collateral, among this R50mio, R25mio can be Sovereign.

Equities eligibility criteria

Only ordinary dematerialised Equity shares will be available within the Collateral Management Service. Equities may be selected based on the available JSE Indices included in the Collateral Management Service (currently limited to JSE Top40) or by individual ISIN as indicated on page 2/8. Margin percentage and concentration limits can be specified for the selected index.

Minimum collateral value

Indicate, optionally, the minimum acceptable value per security piece in ZAR.

Industry sectors
Industry sectors may be EXCLUDED from acceptable collateral as desired.

Equities margin criteria

Price age
Indicate any incremental margins as a function of price quotation age and, if applicable, enter a maximum ceiling on the security price age per security type. Note: All day counts are in business days.

Price volatility
Indicate any incremental margins as a function of price volatility and, if applicable, enter a maximum ceiling on price volatility per security type. Note: Margins on price volatility are dynamic and will apply cumulatively on top of those imposed on rating or market index. The option is available over a 30 or 60 day calculation period. The option is available over a 30 or 60 day calculation period.

Equities concentration limits

Enter a concentration limit % on all Equities, per security or per Issuer.

Average trading volume

Limit on the average traded volume (ATV) per security, and select the desired calculation period between 1, 2, 3, 5, 30, 60 or 90 days.

This concentration limit applies to the average traded volume per security calculated over a day count of 1, 2, 3, 5, 30, 60 or 90 days. This means that by using this concentration the customer wants to limit the value of the collateral by limiting the number of shares he could receive based on the trading volume observed during a limited period. So basically a 200% of a 3 days ATV means that collateral receiver accept a maximum of 2 times the average trading calculated over the last 3 days. If it is 300% of 30 days then 3 times the average trading calculated over the last 30 days.....

Concentration limits: Mixed profiles ( Bonds/ Money Market/ Equities)

Industry sectors
Indicate any concentration limits per eligible industry sector. Any limit indicated here will apply to the contract as a whole, across all allocated collateral (Bonds, Equities, Money Market).