AGREEMENT OF LEASE

AGREEMENT OF LEASE

THIS MEMORANDUM OF AGREEMENT made and entered into between

Paul Loeb van Zuilenburg

hereinafter with his successors, administrators and assigns called THE LESSOR of the one part and

hereinafter with his successors, administrators and assigns called THE LESSEE of the other part.

WITNESSETH

That the Lessor lets to the Lessee, who takes on hire from the property known as:

38B Henry Fagan Street, Bloemfontein,

being a separate 1 bed roomed flat with bathroom and living area as well as parking inside the property gates.

upon the following terms and conditions:

1.PERIOD OF LEASE

1.1 The Lease shall, notwithstanding the date of signature hereof, commence on:

1 September2008

(hereinafter called The commencement Date)

and shall terminate on:

31 December 2009

1.2 The Lessee has the option to renew the lease for a further period of 1 year reckoned from the date of termination provided that written notice to the Lessor of the Lessees intention to exercise this option is given in writing at least 2 (two) calendar months before the termination date. During the renewal period the Lease shall be on all the conditions contained herein save that the Lessee shall have no further right of renewal.

1.3 Should the option in 1.2 be exercised the rent for such further period, payable similary, shall be R 2500.1.4 2.RENTAL AND SECURITY FOR PAYMENT

2.1 Rental shall be R2250. (Two thousand two hundred and fifty rand.) per month.

2.2 Rental shall be due and paid monthly in advance on the first day of each month, without demand and free of any deductions or set-off, the very first of which payment shall be due and payable on signature of this lease to The Lessor. Thereafter the rental shall be paid

Directly to the Lessors bank account number as follows:

ABSA 1190143593, BC 632005.

.

.

or directly in cash to the Lessor at the address stated below:

2.3 During the period of the Lease the Lessee shall not, without written consent of the Lessor, remove any moveable property brought onto the premises by the Lessee at the commencement of the Lease, it being understood that such moveable property is to remain on the Premises as security for all rent or other payment for which the Lessee is liable in terms of the agreement.

2.4 For the period from ..day of ..200 until the end of that month the Lessee shall pay to the Lessor, as aforesaid the sum of R ...

( . ) forthwith upon his signing of this agreement (this being a pro rata rental).

3.DEPOSIT

The Lessee hereby undertakes not later than seven (7) days before occupation or before receiving the keys to the property from the Lessor, whichever comes first, to pay to the Lessor the sum of R R 2250. (Two thousand two hundred rand.)

which shall be placed in an interests bearing savings account to accrue interest for the benefit of the Lessee by the Lessor. This shall be held as a deposit and shall be refunded within 21 (twent one ) days of the Lessee vacating the premises provided the full term of the Lease has expired and after any amounts for which the lessee is liable under this lease for damages, legal fees, unpaid rent, costs of repairs and the like have been deducted therefrom.

4.DEFECTS AND MAINTENANCE4.1 It is hereby recorded that at the time of conclusion of this Agreement the Premises are in good state of repair and condition and that all keys, locks, glass windows, electrical installations, sanitary ware, sewerages pipes, stoves, water taps, geysers and other appurtenances including all moveable items specified in the inventory annexed hereto (the goods) are likewise in good order and condition. Should the Lessee at the time of taking occupation of the Premises discover any defects in the Premises and/or any of the goods, he shall, within 7 (seven) days of occupation, give written notice of any such defect to the Lessor. Failure on the part of the lessee to give such notice shall be deemed to be an acknowledgement on his part that the whole of the Premises including all goods are in good and proper state of repair and condition.

4.2 It is specifically recorded that any notice given by the Lessee in terms of clause 4.1 shall not place any obligation on the Lessor to repair the Premises and goods concerned, the intention being that such notice will serve only to record the state of repair in which the Lessee took occupation of the Premises and goods.

4.3 The Lessor shall keep the structure of the premises and the roof in a state of good repair but shall not be held liable by the lessee for any damages, which the Lessee might suffer by reason of any repairs to be to be affected by the Lessor not being effected timeously or at all.

4.4 The Lessee undertakes, subject to 4.3 and 4.12 below, to maintain, at his cost, the whole of the premises and the goods for the full duration of the lease in the same state of repair as they were received by him, reasonably fair wear and tear excepted, alternatively to reimburse the Lessor for the cost of replacing/repairing any breakages any breakages or defects. Notwithstanding the generality of this clause, the Lessee specifically undertakes to:

4.5 Keep and maintain all gutters, sewerage pipes, water pipes and drains on the premises free from obstruction and/or blockages; and

4.6 Keep the grounds (if any) of the Premises in a clean and tidy condition, free from litter and rubbish, and to keep the hedges trimmed, lawns mowed and flowerbeds neat and tidy; and

4.7 Keep the electrical system in good working order and condition; and

4.8 Clean the carpets and other floor coverings and tiles regularly, it being understood that the same shall be replaced completely at the expense of the Lessee should they be damaged beyond reasonable wear and tear: and

4.9 Maintain the swimming pool, Jacuzzi, motors and filtration plants (if any) in good working condition and free from obstruction and contamination.

4.10 Should the Lessee fail to maintain the premises and/or the goods in the manner specified in this clause, the Lessor shall be entitled, I addition to any other rights or remedies available to him in terms of this Agreement, to carry out the necessary maintenance work at his discretion and to recover the full cost thereof from the Lessee.

4.11 On termination of the Lease, the Lessee shall restore the whole Premises and the goods to the Lessor in the same order and condition as they are at present, fair wear and tear excluded. The Lessor shall within 7 (seven) days after restoration of the Premises to him inspect the premises and notify the Lessee in writing of all the damages to or defects in the Premises for which the Lessee is liable. Failure on the part of the Lessor to give such notice shall be deemed an acknowledgement on his part that the whole of the Premises, including all the goods, are in good and proper state of repair and condition.

4.12 If the Premises forms part of a sectional title scheme under the provision of the Sectional Titles act of 95 of 1986 the Lessee shall not be obliged or entitled to maintain in any manner the Premises and/or the goods insofar as the obligation or right to do so is imposed or vested in the body corporate of the sectional title scheme.

5 FOR SALE AND TO LET NOTICES

The Lessor shal have the right, at all times, to erect and retain, without interference, any For Sale or To Let notices on the property two (2) months prior to the expiry of this lease or on notice to vacate being given by either party. The Lessor and his agents shall have the right to show the Premises to prospective tenants or purchasers at all reasonable times and the Lessee shall accept at least five such appointments per week, provided, however, that if the original period is a fixed period, the Lessor shall only be entitled to exercise such rights during the last two months of the original period and during any period for which this lease is renewed or on notice to vacate being given by either party.

6.IMPROVEMENTS6.1 The Lessee shall make no improvements to the Premises without the prior written consent of the Lessor.

6.2 Any improvements made by the Lessee on or to the Premises during the period of the Lease shall become the property of the Lessor on termination of the Lease and the Lessee shall not be entitled to remove any such improvements or claim from the Lessor any compensation in respect thereof without the Lessors written consent.

6.3 Notwithstanding the provisions of 6.2, the Lessor shall be entitled at the termination of the Lease to demand in writing that any improvements or addition made by the Lessee be removed by the Lessee at his cost. The Lessee shall, at his own cost and to the satisfaction of the Lessor, repair all damage and/or defects caused by such removal.

7.KEYSThe Premises and their content shall not be deemed to have been returned and re-delivered until the Lessee has fulfilled his promise and undertaking and he shall pay the rent, until he has fulfilled his obligation as per this Lease Agreement. He undertakes to deliver the keys of the Premises to the Lessor or his agents, and acknowledges that he will be liable to pay rent until the keys are so delivered without prejudice, however, to the Lessors further claims, if any, for rent or damages hereunder.

8.ANIMALSThe Lessee shall not house live animals upon the Premises. In the event of the Lessee having live animals housed on the premises the Lessee shall, upon the termination of the Lease, be responsible for payment of a service for the eradication of fleas etc by a recognised pest control firm and the cost thereof shall be deducted from the deposit held in terms of Clause 3.

9.RESIDENTIAL QUALIFICATIONSThe Premises shall be used as residential accommodation only and for no purpose whatsoever, save with the written approval of the Lessor and they shall be used and occupied personally by the Lessee and his family who, together, shall at no time number more than 2.. persons.

10.CESSIONS AND SUB-LETTINGThe Lessee shall not cede or assign this Lease, in whole or in part, nor sublet the Premises or any portion thereof, nor permit or allow any other person or persons to occupy the Premises, or to reside, or to obtain possession thereof, with or without remuneration, save with the previous consent in writing of the Lessor thereto first being had and obtained.

11.OCCUPATION11.1 Notwithstanding any receipt given for rental or deposit paid in terms of the Lease, the Lessee shall have no claim for damages or other rights of action against the Lessor, nor be entitled to cancel the Lease, should the Lessor be unable to give the Lessee occupation of the premises on the date of commencement of he Lease for any reason whatsoever not attributed to wilful default on the part of the Lessor. The Lessee undertakes to accept occupation from whatever date the premises are available, subject to a remission of rental in respect of the period of non-occupation.

11.2 Should the Lessee fail to take occupation of the Premises on the date upon which the Premises are made available to him for occupation, the Lessor may, without incurring any liability whatsoever towards the Lessee, immediately cancel this Agreement without notice, whereupon the Lessee shall forfeit the deposit paid by him while remaining liable for any loss of rental or other losses sustained by the Lessor, provided that this clause shall not apply if the Lessor and Lessee have agreed in writing that the Lessee will not take physical occupation of the Premises on the said date.

11.3 In the event of the Lessee not being able to enjoy the beneficial occupation of the premises as the result of them having been materially damaged by fire, earthquake, weather storms, riot activity or the like, then this Lease shall automatically end.

11.4 The Lessee may not without the Lessors prior written consent:

a) vacate the Premises prior to the expiry of the Lease; or

b) allow the Premises to remain unoccupied for any period exceeding six weeks; or

c) permit or allow any persons other than those referred to above in 9 above to occupy the Premises or to reside therein.

12.CONDUCTThe Lessee shall not cause or permit any disorderly conduct of whatever nature upon the said Premises, or do or permit any act, matter or thing in or about the same which shall constitute or cause a nuisance or an inconvenience to the servants employed by the Lessor upon the Premises, or to any other occupant of the building or adjacent properties.

13.INSURANCE ARRANGEMENTSThe Lessee shall not bring, or permit to be brought, upon the Premises any goods, furniture or effects which may be by their nature increase the rate of insurance premium or vitiate the fire insurance or which may be impregnated by wood borer, termite or any other wood destroying insect of any kind, but he shall be liable to pay for or make good any damage, direct or indirect, which the Lessor may sustain through the Lessees default hereunder.

15.THE LESSEE ACKNOWLEDGES THAT:15.1 The Premises are let subject to the conditions in the title deed of the Premises or of the land on which the Premises are situated (as the case may be) and the provisions of any town planning scheme; and

15.2 He has inspected the Premises and that they are suitable for the purpose for which they are let; and

15.3 Payment of rental by way of cheque is an indulgence to the Lessee and in the event of such cheque being dishonoured for any reason whatsoever, the lessee shall be obliged to effect all future payments in cash; and

15.4 All goods brought into the Premises by the Lessee shall be at the sole risk of the Lessee without the Lessor incurring any responsibility relating thereto; and

15.5 The Lessor shall not be liable for any loss sustained by the Lessee by any reason of any burglary of, or fire on, the premises, or for any damage suffered by the Lessee as a result of any act or omission on the part of the Lessor and/or his agent, or as a result of any defect in the Premises; and

15.6 The Premises form part of a sectional title scheme under the provision of the Sectional Tiles Act 95 of 1986 and that the Premises are let subject to conditions contained in the relevant sectional plan and the provisions and the rules applicable to such scheme; and

15.7 The Lessee shall not be entitled for any reason whatsoever to withhold any monies payable by him under this Lease or to set them off against any monies due to him by the Lessor.

16.PUBLIC LIABILITYThe Lessor is not responsible for any loss or damage or any personal injury suffered by the Lessee or his family, or invitees, on the said Premises irrespective of whatever such loss or injury is caused by fire, storm, flood, riot civil commotion, theft, robbery, accident or any cause whatsoever.

18.LESSORS RIGHTS AND PRIVILEGESThe Lessor, his caretakers, workmen or agents shall be at liberty, at all reasonable times, to enter into or upon the said Premises to inspect and to do or to carry out any work, that may be required to be done to the said Premises or to make any alterations or improvements thereto, without hindrance or interference on the part of the Lessee, and the Lessee shall not be entitled to any remission of rent therefore.

19BREACH19.1 In the event of the Lessee failing to pay the rental on due date (being the 1st day of the month) then the Lessor may cancel this Lease forthwith without prior notice or demand. In the event of either of the parties (the defaulting party) committing a breach of any of the terms of this Agreement and failing to remedy such breach within 7 (seven) days after receipt of a written notice from the other party (the aggrieved party) calling upon the defaulting party to remedy the breach complained of, then the aggrieved party shall be entitled, at his sole discretion and without prejudice to any of his other rights in law and/or in terms of this Agreement, either to claim specific performance of the terms of the Agreement or to cancel this Agreement forthwith and without further notice claim damages from the defaulting party; provided that if the Lessee commits a breach of the provisions of this Agreement three times in the calendar years, then upon the third breach, the Lessor shall be entitled immediately to implement either of the remedies referred to above, without first having to give the Lessee written notice to rectify the breach.

19.2 In the event that the defaulting party is:

a) the Lessee, the full amount of the Deposit plus interest shall, on cancellation of this Agreement, be forfeited in favour of the Lessor.

b) The Lessor, the Lessee shall, not later than 14 (fourteen) days after cancellation of this Agreement, receive from the Lessor the Deposit less any deductions made therefrom in terms of 3 above.

19.3 Should there be a dispute as to the determination of this Agreement, the Lessor shall retain the deposit in trust until such dispute is resolved either by agreement between the Lessor and the Lessee or by order of a competent court.

19.4 Should this Agreement be cancelled by the Lessor for any reason whatsoever, the Lessee and/or any other person occupying the Premises on the Lessees behalf, shall immediately vacate the Premises and allow the Lessor to take occupation thereof.

19.5 The Lessee shall pay interest to the Lessor on overdue rental or any other amount payable hereunder at .% per annum from the due date of actual payment.

20 DOMICILE

20.1 Each party shall choose a domicilium et executandi at his address as set out in clause 20.4, at which address all notices and legal process in relation to this Agreement or any action arising therefrom may be effectually delivered and served.

20.2 Any notice given by one of the parties to the other (the addressee) which:

a) is delivered by hand to the addressees domicilium citandi et executandi shall be presumed until the contrary is proven to have been received by the addressee on the date of delivery; or

b) is posted by prepaid registered post from an address within the Republic of South Africa to the addressee at the addressees domicilium citandi et executandi shall be presumed until the contrary is proved to have been received by the addressee on the fifth day of the date of posting.

20.3 Either party shall be entitled, on written notice to the other, to change the address of his domicilium citandi et executandi.

20.4 The Lessee hereby record that his address is as follows:

..

..

..

The Lessor hereby records that his address is as follows:

38 Henry Fagan Street, Bloemfontein, 9301

.

.

.

21.LEGAL COSTSIn the event of the Lessor being obliged to instruct an attorney to take steps to obtain possession of the demised Premises and/or for the recovery of arrears of rental and/or for damages arising out of this Agreement and/or for performance of any of the terms and conditions thereof, then the Lessee shall pay all the legal costs incurred by the Lessor in connection therewith, as between an attorney and client including collection commission.

22.LEASE COSTThe Lessee shall pay the cost of preparation of this lease being R .. as well as stamp duty.

23.INVENTORYThe Lessee hereby accepts the Premises unfurnished/furnished with the articles specified in the inventory hereto signed by both parties should the property be furnished.

24.GENERAL24.1 The parties agree to the jurisdiction of the magistrates court in connection with any action or suit arising from the Agreement or the cancellation thereof.

24.2 Should two or more persons sign this Agreement as Lessor or Lessee, the said persons shall be liable in solidum for the due performance of their obligations in terms of this Agreement.

24.3 This Agreement constitutes the sole and entire agreement between the parties and no warranties, representations, guarantees or other terms and conditions of whatsoever nature not contained herein shall be of any force or effect.

24.4 No variation of the terms and conditions of this Agreement or any consensual cancellation thereof shall be of any force or effect unless reduced to writing and signed by the parties or their duly authorised agents.

24.5 No indulgences which either party (the grantor) may grant to the other party (the grantee) shall constitute a waiver of any of the rights of the granter who shall not thereby be precluded from exercising any rights against the grantee which may have arisen in the past or which might arise in the future.

24.6 The Lessor hereby warrants that all consents required in terms of the Matrimonial Property Act 88 of 1984 have been duly furnished.

24.7 This Agreement shall be duly concluded upon the signature thereof by the Lessor and the Lessee, without it being required that the fact of the Lessors signature be communicated to the Lessee.

24.8 Whenever appropriate in this contract and unless the context otherwise requires, words signifying the singular number shall include the plural and words importing the masculine gender shall include the feminine neuter.

24.9 Should the Lessee be an alien as defined in terms of the Alien Act of 1973 he warrants that he is in possession of a permit issued in terms of the said act, which qualifies to hire the Premises.

25 SPECIAL CONDITIONS

No smoking allowed inside the flat, water and electricity to be paid above rent through metered consumption. Parking on driveway in front of left garage.

26 RENTAL HOUSING ACT

In terms of the Rental Housing Act 50 of 1999:

26.1 Both parties must, at a mutually convenient time, before occupation and after expiry of the Lease, conduct a joint inspection of the dwelling and a list of defects must be annexed to the Lease.

26.2 The Lessor must ensure that the annexure is attached to the Lease by returnin a signed copy to the Lessee.

26.3 Should either party be unable to attend the inspection they may appoint a duly authorised representative to act on their behalf (this must be done in writing).

SIGNED BY THE LESSOR ON THIS 20.. DAY OF August2008

WITNESS

LESSOR

SIGNED BY THE LESSEE ON THIS .DAY OF 200

WITNESS

LESSEE