Ownership

Criteria	Weighting Points	Compliance Target
Voting Rights
Exercisable Voting Rights in the Entity in the hands of Black people	4	25% + 1 vote
Exercisable Voting Rights in the Entity in the hands of Black women	2	10%
Economic Interest
Economic Interest in the Entity to which Black people are entitled	4	25%
Economic Interest in the Entity to which Black women are entitled	2	10%
Economic Interest of any of the following Black natural people in the Measured Entity: · Black designated groups; · Black participants in Employee Share Ownership Programmes; · Black people in Broad-Based Ownership Schemes; · Black participants in Cooperatives	3	3%
New Entrants	2	2%
Realisation Points
Net Value	8	Refer to Annexure 100 (E)

Key Principles:

Ownership is a priority element and therefore a 40% sub minimum of the Net Value must be achieved in order to avoid the discounting principle. To avoid doubt, that is 3.2 points for Net Value.

New entrants and Black natural people are now a requirement as opposed to a bonus point awarded in the Old Codes.

Net Value Calculation deciphered:

There is 2 steps to this calculation:

Step 1: Determine the Deemed Net Value

Deemed Net Value: A = (B-C) / D

A: Deemed Net Value

B: Black shareholding percentage (Economic Interest in the hands of Black people) on measurement date

C: Value of acquisition debt (debt that the black shareholder is still owing on the shares) from Black participants

D: Value of the Entity on measurement date

Step 2: Select the lower result of Formula A and Formula B

Formula A: A = B x (1/ (25% x C)) x 8

A: Result

B: Deemed Net Value

C: Time based graduation factor:

10% for the first year after the current equity interest date.

20% for the second year after the current equity interest date.

40% from the first day of the third year after the current equity interest date to the last day of the fourth year after the current equity interest date.

60% from the first day of the fifth year after the current equity interest date to the last day of the sixth year after the current equity interest date.

80% from the first day of the seventh year after the current equity interest date to the last day of the eighth year after the current equity interest date.

100% from the first day of the ninth year after the current equity interest date to the last day of the tenth year after the current equity interest date.

Formula B: A = (B/C) x 8

A: Result

B: Black Economic Interest percentage

C: Target for Economic Interest in the Entity to which Black people are entitled (i.e. 25%)

After completing the calculation of Formula A and Formula B, the lower of the two results will be the points that will be awarded out of the total 8 points for the Net Value indicator.

Definitions:

Black Designated Groups – This group includes the following groups of individuals:

Unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution.
Black people who are youth as defined in the National Youth Commission Act of 1996.
Black people who are persons with disabilities as defined in the Code of Good Practice on employment of people with disabilities issued under the employment act.
Black people living in rural and under-developed areas.
Black military veterans who qualifies to be called a military veteran in terms of the Military Veterans Act 18 of 2011.

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