SHARE WARRANTS

II]

Upon making an issue of share warrants the following
points require consideration:

(1) The power of the company and the directors to issue
share warrants under the articles of association.

(2) The denominations to be issued, that is to say, the
number of shares to be comprised in each class of warrant
it is proposed to have printed, e.g. it may be decided to issue
warrants in three classes representing I, 5 and 25 shares per
warrant respectively. Each warrant should be given a
distinctive serial number, and the respective denominations
should be denoted by an initial letter, so that if the warrants
are in denominations of 1, 5 and 25 shares respectively,
warrants for 1 share would have the letter A before the
warrant number, warrants for 5 shares would have the
letter B, and warrants for 25 shares would have the letter C.
In each denomination the numbers of the warrants printed
could commence with the number one. It is usual to have
each class of warrant printed on a distinctive coloured paper.
The distinguishing numbers of the shares comprised in each
warrant would be written in by hand when the warrant is
being issued.

(3) The conditions of issue must in no way controvert the
articles of association. A specimen set of conditions is
given hereunder:

1. Share warrants shall be issued in denominations of I, 5 and 25
shares.

2. No share warrant shall be issued, except upon a request in writing
by the person for the time being upon the register of members as the
holder of the share or shares in respect of which the share warrant is
to be issued, or in exchange for other share warrants.

3. The request shall be in such form and authenticated by such
statutory declaration or other evidence as to the identity of the person
making the same, and of his right or title to the share or shares as the
directors shall from time to time require, and is to be lodged at the
registered office of the company, or elsewhere. as the directors shall
from time to time determine.

4. Before the issue of a share warrant the share certificate (if any)
then outstanding in respect of the share or shares intended to be
included in it must be delivered up to the company and retained by
it, unless the directors shall dispense with this condition for special
reasnns
5. Any member applying to have a share warrant issued shall, at
the time of the application, pay to the company any stamp duty
payable in respect thereof, and also such fee for each share warrant
as the directors shall from time to time determine.

6. Share Warrants shall be issued under the common seal of the
company and authenticated in such manner as the directors shall
from time to time determine.