Summarised terms of the Altron participating preference shares
Altron has two securities listed on the JSE, namely ordinary shares and participating preference shares. The ordinary and participating preference shares, other than in respect of voting, rank pari passu for earnings and dividends. The participating preference shares have been classifed by the JSE Limited as "N" share, due to their lower voting rights. Accordingly, both classes of shares must be taken into account when determining the market capitalisation of Altron. The terms of the participating preference shares are summarised below:

Par value (nominal value)
The participating preference shares have a par value of 0.01 cent per share while the ordinary shares have a par value of 2 cents per share.

Earnings and dividends
The participating preference shares rank pari passu with the ordinary shares in terms of earnings and dividends.

Voting
Holders of participating preference shares may attend general meetings of the company but may only vote in the following circumstances:

• where no dividend on the participating preference shares in respect of any financial year has been declared and paid within six months of the end of the financial year;
• upon the winding-up of Altron;
• the resolution before the meeting involves the disposal of the whole or substantially the whole of the undertaking of the company or the whole or the greater part of the assets of the company;
• the resolution before the meeting directly affects the rights attaching to the participating preference shares;
• where dividends remain in arrears and unpaid for more than six months; and
• otherwise in accordance with Altron's articles of association.

In such circumstances, a holder of the participating preference shares will be entitled on a poll, to that proportion of the total votes of Altron which the aggregate of the nominal value of the participating preference shares held by him/her bears to the aggregate nominal value of all the shares in Altron.

Holders of participating preference shares are entitled to receive nancial statements, notices of general meetings and other reports issued by the company from time-to-time.

No resolution for the voluntary winding-up of Altron or the creation of shares ranking in priority to or pari passu with the participating preference shares may be passed, unless the participating preference shareholders have given their prior consent thereto at a separate class meeting of the participating preference shareholders.

Bonus or capitalisation awards
Holders of participating preference shares are entitled to participate in any bonus or capitalisation issues or other offer of securities made to the holders of the ordinary shares on the basis that, in respect of each participating preference share so held, the holder thereof will be offered or entitled to receive such number of participating preference shares or like securities having the same voting rights as the particular preference shares on a basis and terms relative to each ordinary share.

Distribution of assets
Holders of participating preference shares are entitled to participate in any offer or distribution of assets made by Altron to ordinary shareholders. The offer or distribution in terms thereof in respect of each participating preference share shall be on the basis and terms relative to each ordinary share.

Winding-up
Holders of participating preference shares are entitled on winding up to receive out of the surplus assets in priority to the holders of the ordinary shares, payment of the nominal value per participating preference share. Thereafter, once the ordinary shares have received a distribution of the equivalent nominal value per participating preference share, each participating preference share shall rank equally with the ordinary shares in any surplus then remaining.

Variation of rights
The rights attaching to the participating preference shares may be varied only with the prior consent thereto at a separate class meeting of the participating preference shareholders.