bid document real estate department: contract number p-re 01-2018 leasing of erf … ·...

City of Ekurhuleni– SLP Lease Agreement

BID DOCUMENT

REAL ESTATE DEPARTMENT:

CONTRACT NUMBER P-RE 01-2018

LEASING OF ERF 20001, DAVEYTON TOWNSHIP (DAVEYTON FILLING STATION) FOR THE PURPOSES OF A FILLING STATION / GARAGE AND

ANCILLARY USES (WARD 71) FROM DATE OF AWARD TO A MAXIMUM OF NINE (9) YEARS AND ELEVEN (11) MONTHS.

CLOSING DATE AND TIME:

16 February 2018 10:00

ISSUED BY: ENQUIRIES:

Department of Finance (Tender Office: Tender Initiation Section) 68 Woburn Avenue BENONI 1501 Private Bag X65 BENONI 1500 Tel: (+2711) 999-6540/6567 Fax: (+2711) 999-7193

Real Estate Department (Property Management Division) Benoni Customer Care Area Contact Person: Lifa Majola E-mail: [email protected]





DETAILS OF BIDDER

Name of bidder: _______________________________________________________________

____________________________________________________________________________

ID / Passport / Registration Number: _______________________________________________

Nature of bidder: (tick one) Natural Person / Sole Proprietor � School / NGO / Trust � Company / CC / Partnership � Joint Venture (JV) � NOTE: The following documents must be attached as ANNEXURE “A” as proof of existence of entity:

- Natural Persons, Sole Proprietors: copy of ID document / Passport - Schools: copy of Provincial School Registration Certificate - Non Governmental Organisation: copy of Provincial Registration Certificate - Society Club / Association: copy of Constitution / Founding Document - Partnership: copy of Partnership Agreement plus ID documents of all partners - Close Corporation: Copy of CK1 and / or CK2 and Members’ Agreement - Company: current company registration documents - Trust: Letter of Appointment from the Master of the High Court of SA and Deed of Trust - Joint Venture : JV Agreement and/or company registration Documents (if JV is incorporated) plus ID documents / company registration Document of all Members of JV Postal address: ________________________________________________________________ _____________________________________________________________________________

_____________________________________________________________________________ Tel: _________________________ Cell: _________________________

E-mail: ______________________________________________________________________

Fax: _________________________

Marital status: __________________________________

(Natural persons and sole proprietors only) (If married: a copy of the Marriage Certificate must be attached as ANNEXURE “B Full names of person authorized to act on behalf of bidder:


__________________________________________________________________________[If a bidder is a legal entity other than a natural person, a Company Resolution must be attached as ANNEXURE “C” and a Power of Attorney must be attached as ANNEXURE “D” (these documents must authorize the named person to submit this bid and to enter into agreements with the City of Ekurhuleni should the bid be successful)]. BIDDER’S BANKING DETAILS Name of bidder’s banker: _______________________________________________________

Contact details of banker: _______________________________________________________

BIDDER’S PROFILE AND DEVELOPMENT PLAN The bidder’s written profile and development plan with details such as estimated value of proposed development, job opportunities envisaged, design concept and financial plan must be attached as ANNEXURE “E”. SARS TAX CLEARANCE CERTIFICATE Is a Tax Clearance Certificate attached? Yes / No An original valid tax clearance certificate must be attached as ANNEXURE ”F”. Failure to attach a certificate will render the bid incomplete and same will be disqualified. RATES AND TAXES ADDRESS OF BIDDER: Erf Number _______________________ Township / Suburb _____________________________________________

Town / City _____________________________________________

Account Number _______________________ Is the above property owned by the bidder? Yes

/ No Is a copy of an up to date (overdue payments of less than 90 days) Rates Account OR proof (letter from landlord / copy of Rental Statement) that the bidder does not own the above property attached as ANNEXURE “G”? Yes / No MUNICIPAL SERVICES Does the bidder have a contract with CoE for the provision of municipal services Yes / No (Water and electricity)?

Is a copy of an up to date (overdue payments of less than 90 days) Services Account Yes / No OR proof (letter from landlord / copy of Services Statement) that the bidder does not Own the above property attached as ANNEXURE “H”?


Please indicate how you became aware of the invitation to submit this bid: Sowetan Customer Care Areas CoE Web site Other





To ensure that your bid is not exposed to invalidation, documents are to be completed in accordance with the conditions and bid rules contained in the bid documents. Supporting documents must be sealed and externally endorsed BID NUMBER: P-RE 01-2018 and placed in Bid Box Number Seven (07), Ground Floor, Finance Head Office, 68 Woburn Avenue, Benoni, not later than the closing date and time as advertised, at which hour the bids will be opened in public in the Conference Room, Ground Floor at the above-mentioned address. Notwithstanding any other provision as set out in this terms of reference, CoE reserves the right not to award the contract in terms of this terms of reference at all. The following documents must be completed and signed where applicable and submitted as a complete set: 1. FORM OF BID - Declaration 2. FORM “A” - Standard and Special Conditions of Leasing 3. FORM “B” - Declaration of Interest 4. FORM “C” - Specification 5. FORM “D” - Schedule of Prices 6. FORM “E” - Declaration of Bidder’s Past SCM Practices 7. FORM “F” - Granting of Right Form of Bid 8. FORM “G” - Certificate of bidders attendance at compulsory site meeting 9. FORM “H” - Adjudication Criteria THE FOLLOWING DOCUMENTS ARE ATTACHED FOR INFORMATION ONLY AND SHOULD NOT BE SIGNED: 10. FORM “I” - ACCEPTANCE OF BID 11. APPENDIX “X” - LOCALITY PLAN 12. APPENDIX “Y” - ZONING CERTIFICATE 13. APPENDIX “Z” - DRAFT DEED OF LEASE


VERY IMPORTANT NOTICE ON DISQUALIFICATIONS:

A bid not complying with the peremptory requirements stated hereunder will be regarded as not being an “acceptable bid” and as such will be rejected. “Acceptable bid” means any bid which, in all respects, complies with the conditions of bid and specifications as set out in the bid documents.

1. If a VALID ORIGINAL Tax Clearance Certificate or copy thereof or TCS Pin number (or in the

case of a joint venture, of all the partners in the joint venture) has not been submitted with the bid document on closing date of the bid (an expired Tax Clearance Certificate submitted at the closure of the bid will NOT be accepted).

2. If any pages have been removed from the bid document and have therefore not been submitted.

3. Failure to complete the Schedule of Prices as required.

4. Scratching out, writing over or painting out rates without initialling next to the amended rates or information, affecting the evaluation of the bid.

5. The use of correction fluid (i.e. Tippex) or any erasable ink, e.g. pencil.

6. The bid has not been properly signed by a person having the authority to do so.

7. Very important notice: Bidders must note that only information filled in at the spaces provided

therefore in the bid document will be considered for evaluation purposes unless additional space is required and then only if the location of the additional information in the attachments is properly referred to by page number and section heading. Information supplied anywhere else will be disregarded which may lead to the rejection of the bid. The attachment or inclusion of information not specifically asked for is not desirable and lead to delays in the awarding of bids.

9. The bidder attempts to influence or has in fact influenced the evaluation and/or awarding of the

bid. 10. The bid has been submitted either in the wrong bid box or after the relevant closing date and time. 11. If any municipal rates and taxes or municipal service charges owed by the bidder or any of its

directors to the municipality or to any other municipality or municipal entity are in arrears for more than three months.

12. If any bidder during the last five years has failed to perform satisfactorily on a previous contract

with the municipality, municipal entity or any other organ of state, after written notice was given to that bidder that performance was unsatisfactory.

13. The accounting officer must ensure that no award may be given to a person –

(a) who is in the service of the state, or; (b) if that person is not a natural person, of which any director, manager, principal shareholder

or stakeholder, is a person in the service of the state; or; (c) who is an advisor or consultant contracted with CoE in respect of a contract that would

cause a conflict of interest.

14. Bid offers will be rejected if the bidder or any of his directors is listed on the Register of Bid Defaulters in terms of the Prevention and Combating of Corrupt Activities Act 2004 as a person prohibited from doing business with the public sector.

15. Bid offers will be rejected if the bidder has abused the CoE’s Supply Chain Management System

and action was taken in terms of paragraph 38 of the CoE SCM Policy.


16. Form of offer not completed and signed by the authorised signatory. 17. Non submission of financial statements, if required (see bid data or Schedule Pricing) NOTE: IN THIS DOCUMENT AND OTHER DOCUMENTS REFERRED TO BUT NOT ATTACHED, THE FOLLOWING WORDS ARE SYNONYMOUS WITH EACH OTHER. 1. SELLER, COUNCIL, CoE 2. BID, TENDER AND VARIATIONS THEREOF 3. JOINT VENTURE / CONSORTIUM


ADVERTISED IN: SOWETAN PUBLISHING DATE: 19 JANUARY 2018 NOTICE/REF. NO.: PRN 19/2017

CITY OF EKURHULENI Bids are hereby invited for the following: REAL ESTATE Properties

CONTRACT NO.: P-RE 01-2018

DESCRIPTION: Leasing of ERF 20001, Daveyton Township (Daveyton filling station) for the purposes of a filling station / garage and ancillary uses (ward 71) from date of award to a maximum of nine (9) years and eleven (11) months.

DOC. FEE R250.00

CLOSING DATE: 16 FEBRUARY 2018

Bidders must note that this bid may be awarded to more than one bidder. Acceptable bids will be evaluated by using a system that awards points on the basis of 80 points for bid price and a maximum of 20 points for the Broad-Based Black Economic Empowerment (B-BBEE) status level of contributor.

PLEASE NOTE THAT A VALID ORIGINAL OR COPY OF A COMPANY’S TAX CLEARANCE CERTIFICATE OR TCS PIN (OR IN THE CASE OF A JOINT VENTURE, OF ALL THE PARTNERS IN THE JOINT VENTURE) MUST BE SUBMITTED WITH THE BID DOCUMENT Bid documents will be available as from 12:00 on MONDAY, 22 JANUARY 2018, and thereafter on weekdays from 08:00 until 15:00 ONLY, upon payment of a cash non-refundable document fee of R250-00 per set, at the Tender Offices, Ground Floor, 68 Woburn Avenue, Benoni. (Tel. No. (011) 999-6540/6567) Please note that all bid documents are also available for download on our website for free in any colour paper. An information session will be held at 10:00 on TUESDAY, 30 JANUARY 2018. Prospective bidders are requested to meet on the said date and time at: BOARDROOM 111, 1st FLOOR, DAVEYTON CUSTOMER CARE CENTRE, CORNER EISELEN STREET AND MOCKE STREET, DAVEYTON. Bid documentation will not be available at the information session. Bids are to be completed in accordance with the conditions and bid rules contained in the bid documents and supporting documents must be sealed and externally endorsed with the CONTRACT NUMBER AND DESCRIPTION and placed in bid box number SEVEN (07), on the Ground Floor, 68 Woburn Avenue, Benoni, not later than 10:00 on FRIDAY, 16 FEBRUARY 2018. Bids will be opened immediately thereafter, in public, in the Conference Room, Ground Floor, at above-mentioned address. All bids shall hold good for 120 days as from the closing date of bids. Bids which are not received and/or deposited in the specified bid box before 10:00 on the closing date for the bid mentioned hereinbefore, will be marked as late bids and such bids shall in terms of the SCM Policy of the City of Ekurhuleni, not be considered by the Council as valid bids. Enquiries must be directed to Mr. Lifa Majola at e-mail address [email protected] Bidders attention is specifically drawn to the provisions of the bid rules which are included in the bid documents. The lowest or any bid will not necessarily be accepted and the Council reserves the right not to consider any bid not suitably endorsed or comprehensively completed, as well as the right to accept a bid in whole or part. Bids completed in pencil will be regarded as invalid bids. Bids may only be submitted on the documentation provided by the CoE. TELEFAX OR E-MAIL BIDS ARE NOT ACCEPTABLE DR. I. MASHAZI CITY MANAGER COE

https://www.ekurhuleni.gov.za/search/city/daveyton/

mailto:%[email protected]


FORM OF BID DECLARATION:

To: The City Manager City of Ekurhuleni Private Bag X1069 GERMISTON 1400 Sir/Madam, I/We, the undersigned: (a) bid to purchase from the CITY OF EKURHULENI [hereafter "CoE"] all or any of the properties

described both in this and the other schedules to this bid; (b) acknowledge that I / we will be bound by the specifications, prices, terms and conditions

stipulated as set out in these bid documents and / or the terms of reference attached to this bid document;

(c) further agree to be bound by those conditions set out in “FORM “A”, attached hereto, should

this bid be accepted in whole or in part; (d) confirm that this bid may only be accepted by the CoE by way of a duly authorised Letter of

Acceptance;

(e) declare that we are fully acquainted with the bid document and schedules and the contents thereof and that we have signed and completed the returnable schedules and declarations, attached hereto;

(f) declare that all amendments to the bid document have been initialled by the relevant

authorised person and that the document constitutes a proper contract between the CoE and the undersigned;

(g) acknowledge that the information furnished is true and correct;

(h) declare that no municipal rates and taxes or municipal service charges owed by the bidder

or any of its directors to the CoE or to any other municipality or municipal entity are in arrears for more than three (3) months;

(i) declare that I have not failed to perform satisfactorily during the last five (5) years on a

previous bid(s) with the CoE or to any other municipal or municipal entity or any other organ of state after written notice was given to me that my performance was unsatisfactory;

(j) the signatory to the Bid Document is duly authorised; and

(k) documentary proof regarding any tendering issue will, when required, be submitted to the satisfaction of the CoE.

Signed at .............................……………. this ................. day of ………………......................... 20…… Name of Authorised Person: _____________________________________________________

Authorised Signature:

_____________________________________________________


Name of Bidding Entity: _____________________________________________________ Date: ______________________________ As Witnesses: 1. ______________________________ 2. ______________________________

PLEASE NOTE:

• The prices which bidders are prepared to offer for the granting of the right to use the land, must be placed in the column on the form provided for that purpose.

• Bidders must sign the Granting of the Right Form of the Bid as well as Form “D” (Schedule of

Prices), attached to this bid document in full and on acceptance of a bid by the CoE, the Conditions of Contract, Special Conditions, Specifications, Declarations and Schedule of Prices, attached hereto, shall be deemed to be the Conditions of Contract between the parties.

• FAILURE TO COMPLETE ALL BLANK SPACES IN THE FORMS AND TO ATTEND TO THE

OTHER DETAILS MENTIONED THEREIN WILL RENDER THE BID LIABLE TO REJECTION.

• ANY COMPLETION OF THE BID DOCUMENT IN ERASABLE INK (INCLUDING PENCIL) OR BY MAKING USE OF CORRECTION FLUID (i.e. TIPPEX) WILL RENDER THIS BID INVALID.


FORM “A’’ CONTRACT NUMBER P-RE 01-2018

LEASING OF ERF 20001, DAVEYTON TOWNSHIP (DAVEYTON FILLING

STATION) FOR THE PURPOSES OF A FILLING STATION / GARAGE AND ANCILLARY USES (WARD 71) FROM DATE OF AWARD TO A MAXIMUM OF

NINE (9) YEARS AND ELEVEN (11) MONTHS.

STANDARD AND SPECIAL CONDITIONS IN RESPECT OF THE GRANTING OF THE RIGHT TO USE LAND:

1. The Property in respect of which the bidder is granted a right to use the land is Erf 20001 Daveyton

Township, Daveyton, measuring approximately 2346m2 in extent, situated on Heald Street, Daveyton, as indicated on the plan attached hereto marked Appendix "X" (“Property”) and held by CoE in terms of Deed of Transfer T49741/2000

2. The successful bidder shall pay the monthly rental amount to the Council free of exchange or

commission as follows:

2.1 A deposit equivalent to 20% (twenty percent) of the first years annual rental amount shall be payable upon the date of signature of the proposed Deed of Lease, which deposit shall be invested in an interest bearing account by the CoE and is refundable should the lessee decide not to proceed with the Deed of Lease for whatsoever reason, alternatively at the termination of the Deed of Lease.

2.2 The monthly rental amount as set out in the Deed of Lease shall be payable monthly in

advance on or before the 30th day of each month. If it is monthly in advance, then the due date is 7th

2.3 All costs pertaining to the transaction shall be borne by the applicant/successful bidder.

3. CoE will conduct a background credit check to verify the ability of the lessee to successfully meet

rental commitments

4. The lessee shall commence with the development of the Property within 6 (six) months after the date of signature of the Deed of Lease and shall complete the development within 18 (eighteen) months thereafter.

5. Should the lessee fail to commence with or complete the development as stipulated in 4. above,

the Deed of Lease shall terminate at the discretion of the accounting officer 6. Should the Deed of Lease terminate as stipulated in clause 5 above, CoE shall be obliged to

refund to the successful bidder the deposit paid by the successful bidder in respect of the monthly rental amount, less all costs pertaining to the transaction, which costs shall be for the account of the successful bidder. CoE will only compensate the successful bidder for any improvements erected on the Property after the Property has been leased to an alternate lessee.

7. CoE shall conduct a site inspection in the presence of the lessee to establish the condition of the

Property.

8. A Deed of Lease with a duration of 10 years or more must be registered against the Deed of Transfer at the relevant Deeds Office.

9. The lessee shall not be entitled to sub-let the Property or any part thereof nor assign, cede or

transfer its interest under the Deed of Lease nor part with possession of the Property to any other party or body without obtaining written consent of CoE, which consent shall not be unreasonably withheld. In the event of CoE consenting to the sub-letting of the premise or a portion thereof, the lessee shall in no way be relieved of its obligations to CoE under the Deed of Lease by reason of


any sub-lease. Please note that consent that CoE shall consider giving shall be subject to any statutory regulations and laws governing leasing of municipal property.

10. The lessee accepts the Property “as is” and is responsible for the upkeep and maintenance of the

Property at his/ her/ its own cost and CoE may issue a written notice calling on the lessee to do so.

11. The lessee is required to tender payment for the valuation fees of the independent valuator,

appointed by Council (or its delegated authority) to provide an objective estimation of the rental valuation which amount is payable before conclusion of the Deed of Lease.

12. If the Property to be leased is in poor condition or in need of urgent upgrading, the lessee may

apply to have a portion of rental waived in exchange for effecting such repairs or installations as may be required, approval must be given by the Head of Department of the Real Estate Department. In the even such waiver is granted, an inspection will be conducted at the end of the agreed repair period to ensure that the lessee has fulfilled his/ her/ its commitments in terms of this arrangement, failing which, the lessee becomes liable for the full rental amount.

13. The lessee shall be obliged to comply with all of the relevant legislation, including but not limited

to environmental legislation in respect of the successful bidder’s intended use of the Property.

14. CoE reserves the right to gain access to and inspect the Property at any point in during the term of the Deed of Lease, to ensure compliance with provisions of the Deed of Lease.

15. Once the Deed of Lease is terminated there will be no legal expectation by the lessee of a

renewal or extension of the Deed of Lease, however the lessee will be eligible to bid again for the Property.

16. The Property is zoned “General Industrial” (zoning certificate is attached hereto as Appendix

“Y”) in terms of the Ekurhuleni Town Planning Scheme, 2014 and is subject to the conditions contained in the said Town Planning Scheme and the Conditions of Establishment of the township concerned.

17. Should the lessee breach any term of this contract or fail or neglect to pay the rental amount on

the due date or should he/she fail or neglect to pay rates or any other levies on the Property on the due date thereof, CoE may in its absolute discretion:

17.1 send a letter of demand claiming from the lessee such arrear instalment, interest, rates

or levies; or

17.2 failing compliance with the letter of demand, CoE may send the lessee a notice to vacate the Property, should the tenant refuse or fail to vacate, or lodge a dispute or a notice to object, an application to evict may be lodged ; or

17.3 cancel the Deed of Lease summarily without further notice to the lessee.


FORM “B’’ DECLARATION OF INTEREST:

1. No bid will be accepted from persons in the service of the state∗. 2. Any person, having a kinship with persons in the service of the state, including a blood

relationship, may make an offer or offers in terms of this invitation to bid. In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons connected with or related to persons in service of the state, it is required that the bidder or their authorised representative declare their position in relation to the evaluating/adjudicating authority and/or take an oath declaring his/her interest.

3. In order to give effect to the above, the following questionnaire must be completed and submitted

with the bid:

3.1 Full Name: ……………………………………………………………………………………………..

3.2 Identity Number:

…………………………….…………………………………………………………

3.3 Company Registration Number: …………………………..…………………………………………

3.4 Tax Reference Number:

………………………………………………………………………………

3.5 VAT Registration Number: ……………………………………………………………………………

3.6 Are you presently in the service of the state∗? YES /

NO

3.6.1 If so, furnish particulars:

…………………………………………………………………………………………………..

3.7 Have you been in the service of the state for the past twelve months? YES /

NO


…………………………………………………………………………………………………..

∗ MSCM Regulations: “in the service of the state” means to be –

(a) a member of – (i) any municipal Council; (ii) any provincial legislature; or (iii) the national Assembly or the national Council of provinces;

(b) a member of the board of directors of any municipal entity; (c) an official of any municipality or municipal entity; (d) an employee of any national or provincial department, national or provincial public entity or constitutional institution

within the meaning of the Public Finance Management Act, 1999 (Act No.1 of 1999); (e) a member of the accounting authority of any national or provincial public entity; or (f) an employee of Parliament or a provincial legislature.


3.8 Do you have any relationship (close family member, partner or associate) with YES / NO

persons in the service of the state and who may be involved with the evaluation and or adjudication of this bid?


…………………………………………………………………………………………………..

3.9 Are you aware of any relationship (close family member, partner or associate) be- YES /

NO tween a bidder and any persons in the service of the state who may be involved with the evaluation and or adjudication of this bid?


…………………………………………………………………………………………………..

3.10 Are any of the company’s directors, managers, principle shareholders or stake- YES /

NO holders in the service of the state?


…………………………………………………………………………………………………..

3.11 Are any spouse, child or parent of the company’s directors, managers, principle YES /

NO shareholders or stakeholders in the service of the state?


…………………………………………………………………………………………………..


FORM “C” CONTRACT NUMBER P-RE 01-2018

LEASING OF ERF 20001, DAVEYTON TOWNSHIP (DAVEYTON FILLING

STATION) FOR THE PURPOSES OF A FILLING STATION / GARAGE AND ANCILLARY USES (WARD 71) FROM DATE OF AWARD TO A MAXIMUM OF

NINE (9) YEARS AND ELEVEN (11) MONTHS.

SPECIFICATION:

1. GENERAL INFORMATION

The Council, at its meeting held on 23 September 2015 under Item A-CORP A-F (28-2015) considered the granting of the right to use the Property known as Erf 20001 Daveyton Township, Daveyton, as indicated on the attached locality plan marked Appendix “X”, situated on Heald Street Daveyton at Daveyton and owned by the City of Ekurhuleni in terms of Deed of Transfer T49741/2000. At the said meeting, Council resolved in terms of the Municipal Finance Management Act 56 of 2003 and Asset Transfer Regulations 2008 to lease the said capital asset by means of a public tender. The Property is improved, measuring approximately 2346m2. The granting of the right to use this capital asset is subject to the standard conditions of the granting of a right to use land contained in FORM “A” of this document as well as the following conditions:

1.1 The reserve monthly rental of the Property is R50 900.00 (VAT exclusive), as indicated in

the Price Schedule “FORM “E” of this document and any offer below this reserve price shall not be considered.

1.2 The use of the Property shall be for Industrial/Business purposes in terms of the zoning

certificate attached to this document as Appendix “Y” or the current zoning of the Property is General Industrial and rezoning/township establishment is required incorporating the development parameters set out in the CoE Spatial Development Framework/Plans which entail industrial/business, for which costs the bidder will be liable.

2. CONDITIONS OF LEASING OF Erf 20001 Daveyton Township, Daveyton

1. That the report regarding the transfer and permanent disposal of a non-exempted capital asset, being Erf 20001 Daveyton Township, DAVEYTON, approximately 2346m² in extent, for purposes of a filling station, BE NOTED;

2. That in terms of section 14(2)(a) of the Municipal Finance Management Act, 56 of 2003, it BE RESOLVED that, based on reasonable grounds and based on the comments from all the departments, as set out in the report, the subject property is not an asset needed to provide the minimum level of basic municipal services;

3. That, having considered, as required in terms of section 14(2)(a) of the Municipal

Finance Management Act, 56 of 2003, the economic and community value to be received in exchange for Erf 20001 Daveyton Township, DAVEYTON, as well as the fair market value thereof, the latter BE DETERMINED at a reserved rental value of R50 900.00 (VAT exclusive);

4. That, the applicant BE REPONSIBLE for the payment of all rental arrears and interest

prior to the signing of the lease agreement;

5. That, the lease COMMENCE on the first day of the month following the final signature of the lease agreement;

6. That, the lease BE for a period of nine (9) years and eleven (11) months;


7. That, rental ESCALATE by 8% compounded per annum and Council retains the right to

revise the rental amount every three years after inception of the agreement of lease;

8. That, the lessee BE RESPONSIBLE for all maintenance in respect of the property mentioned in (1) above, as well as for the payment of the consumption of all municipal services consumed or utilised;

9. That, having taken into account the requirements of regulation 7 of the Asset Transfer

Regulations, 2008, and subject to compliance with the provisions of section 79(18) of the Local Government Ordinance, 1939, as amended, the transfer of Erf 20001 Daveyton Township, DAVEYTON, approximately 2346m² in extent, BE APPROVED IN PRINCIPLE and that the said immovable capital asset LEASED for the purposes of a filling station, subject to the standard conditions contained in the Council’s Land Disposal Framework and Guidelines and Supply Chain Management Policy, as well as the following further conditions : (a) There should be no servicing/maintenance of vehicles unless proper

maintenance/servicing and washing facility with proper washing bays as well as oil traps are provided to prevent the pollution of underground and surface watercourses as well as nuisance to the neighbouring community.

(b) An emergency response plan must be developed for accidental

incidences/emergencies which may occur and should form part of an EMPr (Environmental Management Programme). The said plan must ensure that accidental incidences are dealt with effectively and measures are put in place to ensure that similar occurrences do not recur.

(c) Proper facilities for wastewater must be provided to prevent it running into the street

thus causing health nuisance and pollution of surface and underground watercourses.

(d) Adequate measures-must-be in place to ensure that activities on the property do

not cause Surface and groundwater pollution.

(e) Stormwater management plan must be in place to ensure that surface run-off from hard-surfaced areas is adequately managed. The said plan must be compiled by a stormwater competent professional engineer to the satisfaction of the Department of Roads and Stormwater of the CoE. The said plan must be designed in such a way that polluted water from the operation area is separated from the stormwater.

(f) Discharging of industrial effluent in to stormwater drains/outlets is strictly prohibited.

(g) Discharging of oils/lubricants in to stormwater drains/outlets is strictly prohibited.

(h) Hazardous waste generated on site must be appropriately stored and disposed of

at landfill site approved for such type of waste.

(i) The proposed project must comply with applicable requirements of the Emergency Services of the municipality.

(j) Provincial noise regulations as outlined in Provincial Notice No. 5479 of 1999:

Gauteng Noise Control Regulations must be complied with at all times. Noise must not constitute a nuisance to the neighborhood during operational phases of the proposed services.


(k) The area must be kept neat and tidy at all times.

(l) All activities to be undertaken on the property must be in accordance with the applicable By-Laws, policies and requirements of the City of Ekurhuleni

(m) A valid Retail License must be acquired from Department of Energy 10. That the City Manager or his nominee BE AUTHORISED to do or cause to be done

what may be necessary to give effect to the above recommendation.

3. DEVELOPMENT PLAN REQUIREMENTS

The bidder is required to prepare and submit a written concise development plan for the site and attach it as ANNEXURE “D” to this document. The development plan must contain at least the following:

3.1 Bidder’s Profile which inter-alia shall include details on previous developments completed by

the bidder. The information must be presented using the format below:

Name of Development

Year completed Value of Development

Client Telephone No.

Total value of developments

3.2 A Draft Site Development Plan for the site indicating the layout of all buildings, the proposed

uses of buildings, building heights, floor area of all buildings, planned entrances and exits, landscaping, surface treatments and boundary treatments.

3.3 An artist’s impression of the proposed development.

3.4 A written project rationale (1 - 2 pages) which describes the bidder’s vision and highlights

key elements of the design with clear alignment to the CoE Spatial Development Framework and/or Local Plans

3.5 Estimated total value of improvement/investment value of the development.

3.6 Expected number of temporary and permanent jobs envisaged in the development.

3.7 Proof of availability of funds to pay the purchase price and finance the proposed

development which entails bidder’s own money (equity) and funding from financial institution (loan). Only an auditor’s or bank certified funding availability documents shall be regarded as acceptable proof.

3.8 In conclusion the bidder is expected to prepare a summary of the proposed development

using the following format:


Proposed Development Summary Total Floor area (m²) (e.g.) Industrial/Business development

Other

Total Floor Area of Development ……………… (m²)

Total investment value/capital outlay R Number of temporary jobs

Number of permanent jobs

4. LEASE AGREEMENT

The specifications as indicated in 1, 2 and 3 above as well as any further conditions contained in the attached “Deed of Lease”

5. EXPERIENCE IN THE PETROLEUM ENVIRONMENT The bidder must at lease have a minimum of 12 months proven company experience in the petroleum environment


FORM “D”




SCHEDULE OF PRICES:

I, the undersigned, (bidder)

………………………………………………………………………………… *in my capacity as

…………………………………………………………………………………………….. *acting on behalf

of ………………………………………………………………………………………… in terms of the resolution passed at ………………………..……………….. on the ……day

of ……………….………. 20.... (*delete if not applicable) do hereby bid to lease from the City of Ekurhuleni the property/ies described below:

DESCRIPTION:

BID PRICE

(EXCLUDING VAT)

AMOUNT IN WORDS

Erf 20001 Daveyton Township R

subject to the General Contract Conditions, Standard Conditions and Special Conditions of lease attached hereto and specifically subject to the following conditions, namely:

1. Any bid submitted shall remain valid, irrevocable and open for written acceptance for a period of

one hundred and twenty (120) days from the closing date. The submission of a bid shall be deemed to constitute a contract between Council and the bidder whereby the latter agrees not to withdraw this bid or to amend it or derogate from its effect during the aforesaid period of one hundred and twenty (120) days. The bidder further undertakes to enter into a formal Sale agreement within 21 (TWENTY-ONE) days of written notification that the bid has been accepted.

2. This bid remains open for acceptance by the Council for a period of one hundred and twenty

(120) days from the closing date as advertised. 3. This bid document shall on acceptance of my bid by the Council not constitute a valid Deed of

Lease. The conditions of lease shall be as set out in the Deed of Lease.


PLEASE NOTE: Council, acting in terms of Section 14(2)(b) of the Municipal Finance Management Act 56 of 2003, has determined and confirmed the fair market rental of the property/ies is as follows:

DESCRIPTION:

FAIR MARKET RENTAL

(INCLUDING VAT) Erf 20001 Daveyton Township

R50 900.00 (per month)

BIDDERS ARE NOTIFIED THAT ANY OFFER BELOW THIS FAIR MARKET VALUE/S (WHICH

CONSTITUTE THE RESERVE PRICE/S) WILL NOT BE CONSIDERED.

Signature of person authorised to sign bid documents

Name in block letters

Designation Date


FORM “E” CONTRACT NUMBER P-RE 01-2018

LEASING OF ERF 20001, DAVEYTON TOWNSHIP (DAVEYTON FILLING STATION)

FOR THE PURPOSES OF A FILLING STATION / GARAGE AND ANCILLARY USES (WARD 71) FROM DATE OF AWARD TO A MAXIMUM OF NINE (9) YEARS

AND ELEVEN (11) MONTHS.

DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES:

1 This municipal Bidding Document must form part of all bids invited. 2 It serves as a declaration to be used by municipalities and municipal entities in ensuring

that when goods and services are being procured, all reasonable steps are taken to combat the abuse of the supply chain management system.

3 The bid of any bidder may be rejected if that bidder, or any of its directors have:

a. abused the municipality’s / municipal entity’s supply chain management system or

committed any improper conduct in relation to such system; b. been convicted for fraud or corruption during the past five years; c. wilfully neglected, reneged on or failed to comply with any government, municipal or

other public sector contract during the past five years; or d. been listed in the Register for Tender Defaulters in terms of section 29 of the Prevention

and Combating of Corrupt Activities Act (No 12 of 2004).

4 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.

Item Question Yes No 4.1 Is the bidder or any of its directors listed on the National

Treasury’s database as a company or person prohibited from doing business with the public sector? (Companies or persons who are listed on this database were informed in writing of this restriction by the National Treasury after the audi alteram partem rule was applied).

Yes

No


4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)? (To access this Register enter the National Treasury’s website, www.treasury.gov.za, click on the icon “Register for Tender Defaulters” or submit your written request for a hard copy of the Register to facsimile number (012) 3265445).

Yes

No


4.3 Was the bidder or any of its directors convicted by a court of law (including a court of law outside the Republic of South Africa) for fraud or corruption during the past five years?

Yes

No

http://www.treasury.gov.za/



Item Question Yes No 4.4 Does the bidder or any of its directors owe any municipal

rates and taxes or municipal charges to the municipality / municipal entity, or to any other municipality / municipal entity, that is in arrears for more than three months?

Yes

No


4.5 Was any contract between the bidder and the municipality / municipal entity or any other organ of state terminated during the past five years on account of failure to perform on or comply with the contract?

Yes

No


CERTIFICATION

I, THE UNDERSIGNED (FULL NAME)

...………..………………………………….………………………… CERTIFY THAT THE

INFORMATION FURNISHED ON THIS DECLARATION FORM TRUE AND CORRECT.

I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN

AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.

………………………………………... ………………………….. Signature Date …………………………………………. ………………………………………..……….. Position Name of Bidder


FORM “F’’ CONTRACT NUMBER P-RE 01-2018




NOT APPLICABLE FOR THIS BID

GRANTING OF RIGHT FORM: ADJUDICATION OF BIDS Paragraph 20 contained in the Implementation Guide of the Preferential Procurement Regulations, 2011 pertaining to the Preferential Procurement Policy Framework Act 5 of 2000 stipulates the following: “20 SALE AND LETTING OF ASSETS 20.1 The preference point systems prescribed in the PPPFA and the Preferential Procurement

Regulations, 2011 are not applicable to the sale and letting of assets. 20.2.1 In instances where assets are sold or leased by means of advertised competitive bids or written

price quotations or by auctions the award must be made to the highest bidder.


FORM “G” CONTRACT NUMBER P-RE 01-2018




ATTENDANCE AT THE SITE/CLARIFICATION MEETING: This is to certify that I, ......................................................................................................................... , representative of (Bidder) .................................................................................................................... .............................................................................................................................................................. of (address) ......................................................................................................................................... .............................................................................................................................................................. .............................................................................................................................................................. Telephone number .............................................................................................................................. Fax number ......................................................................................................................................... visited and inspected the site on (date) ............................................................................................... in the company of ................................................................................................................................. SIGNATURE OF BIDDER'S REPRESENTATIVE: ............................................................................


FORM “H” ADJUDICATION AND AWARDS

Disposal & Letting of City of Ekurhuleni owned Immoveable Assets

NOTE - THE FOLLOWING SETS OUT THE PROCEDURE FOR EVALUATING BIDS FOR THE PURCHASE AND, THEREFORE, THE DISPOSAL AND SALE OR THE GRANTING OF A RIGHT TO USE CONTROL OR MANAGE AN COE OWNED IMMOVABLE CAPITAL ASSETS BY THE MUNICIPALITY.

It must be noted that by resolution of the Municipality the City Manager/Accounting Officer or nominee has been authorised to effect minor changes and to do what shall be requisite to give effect to the above – such changes to be reported to the Corporate Legal Legal Services & Finance Departments of the Municipality and the Municipal Council for noting.

Adjudication Framework:

Bids submitted by Companies/NGO’s/Trusts/Business Enterprises: Acceptable bidders may proceed to the second phase of the bidding process. A bid that fails to meet the specified prequalification criteria will be considered an unacceptable bid and will be disqualified.

Phase One

PRE-QUALIFICATION CRITERIA

Please Select

a) a bidder having a stipulated minimum B-BBEE status level contributor

b) an EME or QSE;

c)

a bidder subcontracting a minimum of 30% to: (v) an EME or QSE which is 51% owned by black people living in rural or underdeveloped areas or townships;

REQUIRED DOCUMENTATION CHECKLIST: COMPANIES/ NGO’S/TRUSTS/BUSINESS ENTERPRISES: Accepted bidders will be required to submit the following within five (05) working days from date of request:

SUBMITTED: YES/NO

Copy of Original Proof of Company/NGO, Trust and Business Enterprises Registration Copy of a pre-approved bond that covers the security deposit and one month’s rental or the Copy of a letter from the Bidder’s Bank or a Bank Guaranteed Cheque which guarantees that sufficient funds are available to cover the security deposit and one month’s rental.

Copy of a Company Resolution/Proxy that authorizes the Bidder to submit a bid on behalf of a company or person(s)

Copy of proof of address (business) B-BBEE Certificate Completed Bid Forms Copy of Medical Certificate proving the disability Proof of Experience: Original letter from a petroleum company certifying that the bidder has at least 12 months experience in the petroleum industry.


Phase Two Only bids that are in compliance with Phase One being the “pre-qualification” criteria will qualify for the evaluation of the second phase. For Phase Two bids will only be evaluated and adjudicated on the 80/20 Preference Points.


FORM “I” (OFFICE USE ONLY) ACCEPTANCE OF BID:


LEASING OF ERF 20001, DAVEYTON TOWNSHIP (DAVEYTON FILLING STATION) FOR THE PURPOSES OF A FILLING STATION / GARAGE AND ANCILLARY

USES (WARD 71) FROM DATE OF AWARD TO A MAXIMUM OF NINE (9) YEARS AND ELEVEN (11) MONTHS.

CITY OF EKURHULENI

BID NUMBER: P-RE 01-2018

GRANTING OF RIGHT TO USE LAND AT …………………………………………….

The City of Ekurhuleni, herein represented by ……………………………………… in his/her capacity

as ………………………………of the ……………………………, acting by virtue of a resolution of the Bid Adjudication Committee taken at a meeting held on …………………………..,

hereby accepts the bid of ……………………………………………….. (full name of bidder) to

purchase from the City of Ekurhuleni. …………………… ……………………………………….. for the sum of R ………………………………….. (VAT exclusive) on this …… day of ………………………. 20…., in

the presence of the undersigned witnesses:

AS WITNESSES: 1. …………………………………….. ……..……………………………..………..

CITY OF EKURHULENI 2. ……………………………………..

OFFICIAL STAMP


APPENDIX “X”


APPENDIX “Y”


APPENDIX “Z”


DEED OF LEASE: IMMOVABLE PROPERTY

Between

City of Ekurhuleni

(“CoE”)

and

________________

(“Lessee”)


TABLE OF CONTENTS

1. DEFINITIONS AND INTERPRETATION ...................................................................................... 1 2. DESCRIPTION OF THE LAND ..................................................................................................... 5 3. LEASE ........................................................................................................................................... 5 4. UNDERTAKING OF OPERATIONS ............................................................................................. 5 5. COMPENSATION FOR IMPROVEMENTS .................................................................................. 5 6. DURATION .................................................................................................................................... 6 7. DEPOSIT ....................................................................................................................................... 6 8. RENTAL ........................................................................................................................................ 6 9. CONDITIONS OF THE LAND ....................................................................................................... 8 10. MUNICIPAL RATES AND CHARGES .......................................................................................... 8 11. USE OF LAND .............................................................................................................................. 9 12. SIGNS ........................................................................................................................................... 9 13. INSURANCE ................................................................................................................................. 9 14. ASSIGNMENT AND SUBLETTING .............................................................................................. 9 15. RIGHTS AND OBLIGATIONS OF THE LESSEE ....................................................................... 10 16. RIGHTS AND OBLIGATIONS OF CoE ....................................................................................... 10 17. THIRD PARTY CLAIMS .............................................................................................................. 11 18. MAINTENANCE AND REPAIRS ................................................................................................. 11 19. EXCLUSION OF CoE FROM CERTAIN LIABILITY AND INDEMNITY ...................................... 12 20. CoE’S RIGHTS OF ENTRY AND CARRYING OUT OF WORKS .............................................. 13 21. RULES ........................................................................................................................................ 13 22. DAMAGE TO OR DESTRUCTION OF LAND ............................................................................ 13 23. CONFIDENTIAL INFORMATION ................................................................................................ 14 24. DISPUTE RESOLUTION ............................................................................................................ 15 25. BREACH ..................................................................................................................................... 16 26. COSTS ........................................................................................................................................ 17 27. DOMICILIA AND NOTICES ........................................................................................................ 18 28. WHOLE AGREEMENT ............................................................................................................... 18 29. NON-WAIVER ............................................................................................................................. 18 30. EXISTING ENCUMBRANCES, RIGHTS AND SERVITUDES ................................................... 19 31. GOOD FAITH .............................................................................................................................. 19 32. RECORDS AND REPORTS ....................................................................................................... 19 33. SALE OF LAND ........................................................................................................................... 19 34. JURISDICTION ........................................................................................................................... 20 ANNEXURE A – LAND SURVEY DIAGRAM / PLAN ............. Error! Bookmark not defined.

ANNEXURE B – COUNCIL CONDITIONS ............................. Error! Bookmark not defined.

AGREEMENT OF LEASE

This Agreement is made between:

a) City of Ekurhuleni (“CoE”); and

b) The Lessee, duly authorised hereto.

RECITALS

A. CoE is the registered owner of the Land within the municipal borders of CoE, including the

Land.

B. CoE has published a request for proposals (“RFP”) for the carrying out of the Operations;

C. Pursuant to the RFP in relation to the Land, CoE sought to invite interested parties to conduct

the Operations.

D. The Lessee submitted its Bid Proposal which was accepted by CoE.

E. Consequent to the Bid Proposal acceptance, the Parties wish to record in this Agreement the

terms and conditions subject to which the Property Development/Operations are to be

undertaken and executed by the Lessee.

F. It is accordingly agreed that this document constitutes the formal agreement of lease between

the Parties in respect of the Land.

The Parties agree as follows:

DEFINITIONS AND INTERPRETATION

1.1. In this Agreement, except in a context indicating that some other meaning is intended,

1.1.1. “Accounting Officer” means the municipal official as described in the Municipal Finance

Management Act No. 56 of 2003, as amended;

1.1.2. “Agreement” means this Agreement and all annexures hereto together with the RFP and

the Bid Proposal;

1.1.3. “Bid Proposal” means the Proposal by the Lessee for its undertaking and execution of

the Operations made in response to the Proposal Call;

1.1.4. “Commencement Date” means the date upon which this Agreement commences, being

[______________________________________];

2

1.1.5. “Confidential Information” means all of the Parties’ trade, commercial, financial, sales,

marketing and management secrets, proprietary and confidential information, directly

or indirectly obtained, including any information relating to:

1.1.5.1. operating know-how, processes and techniques used by the Parties in the conduct of

their business processes;

1.1.5.2. trade secrets, know-how, formulae, sketches, photographs, plans, drawings, sample

reports, models, studies, analyses, compilations, inventions, technical data, product

or process specifications, design formulations, computer programs, concepts,

methodologies and all other technical, mechanical, computer and similar

information, belonging to or in the possession of the Parties and/or used by them in

their business operations;

1.1.5.3. knowledge of details and particulars in regard to the Parties’ suppliers, exclusivity

arrangements, customers and business associates and professional advisors;

1.1.5.4. the Parties’ method(s) of conducting business, costs and source(s) of material;

1.1.5.5. the contractual, financial management and supply arrangements between the Parties

and their clients, business associates, suppliers and professional advisors;

1.1.5.6. any other matter(s) which relates to the business of the Parties in respect of which

information is not readily available in the normal course of business and which may

come to the knowledge of the Parties, their management and/or Personnel; and

1.1.5.7. this Agreement;

1.1.6. “Property Development Date” means [__________________], being the date upon

which the Lessee shall commence the Operations on the Land;

1.1.7. “Council Conditions” means those conditions as provided by the CoE municipal council

in relation use of the Land as set out in Annexure B;

1.1.8. “CPI” means the headline Consumer Price Index for all urban areas that includes all

products and services and all geographic areas covered and published monthly by

Statistics South Africa;

1.1.9. “Day” means any day of the week, excluding Sundays and South African public holidays;

1.1.10. “CoE” means City of Ekurhuleni, a municipality created in terms of the Local Government

Municipal Structures Act No 117 of 1998;

3

1.1.11. “Land” means the land, situated at Erf 20001, Daveyton Township measuring

approximately 2346m² in extent made available by CoE to the Lessee in terms of this

Agreement, including all buildings situated on such land, as more fully depicted in

Annexure A;

1.1.12. “Lease Period” means the period for which this Agreement subsists, being a period of

[_________________________];

1.1.13. “Lessee” means [___________________________] a company/close corporation/trust

duly registered in terms of the laws of South Africa with registration number

[____________]/a adult male/female [insert occupation] bearing identity number

[_____________];

1.1.14. “Month” means a calendar month, and more specifically:

1.1.14.1. in reference to a number of months from a specific date, a calendar month commencing

on that date or the same date of any subsequent month; and

1.1.14.2. in any other context, a month of the calendar, that is, one of the 12 (twelve) months of

the calendar, and “Monthly” has the corresponding meaning;

1.1.15. “Operations” means the operations to be carried out by the Lessee, namely the operation

of a garage, filing and/or service station, convenient store and related facilities on the

Land;

1.1.16. “Parties” means CoE and the Lessee, and “Party” means either CoE or the Lessee, as

the context implies;

1.1.17. “Proposal Call” means CoE’s published Proposal Call in terms of which bid proposals

were invited from parties for undertaking and executing the Property Development/ the

Operations;

1.1.18. “Rates” means electricity fees, water fees, sanitary fees, refuse removal charges,

assessment rates and taxes and any other charges in respect of the Land and/or any

improvements thereto;

1.1.19. “Termination Date” means the date upon which this Agreement shall terminate in

accordance with the provisions as set out in this Agreement;

1.1.20. “Year” means a period of 12 (twelve) consecutive months, and “yearly” refers to a year

commencing on the date on which this Agreement comes into operation or any

anniversary of that date;

1.1.21. “VAT” means Value Added Tax payable in terms of the VAT Act, from time to time;

4

1.1.22. “VAT Act” means the Value-Added Tax Act, No. 89 of 1991, as amended;

1.1.23. references to notices, statements and other communications by or from CoE include

notices by or from CoE’s agent;

1.1.24. expressions in the singular also denote the plural, and vice versa;

1.1.25. words and phrases denoting natural persons refer also to juristic persons, and vice versa;

and

1.1.26. pronouns of any gender include the corresponding pronouns of the other genders.

1.2. Any provision of this Agreement imposing a restraint, prohibition or restriction on the Lessee

shall be so construed that the Lessee is not only bound to comply therewith but is also

obliged to procure that the same restraint, prohibition or restriction is observed by

everybody occupying or entering the Land or any part thereof through, under, by

arrangement with, or at the invitation of, the Lessee, including (without limiting the

generality of this provision) its associates and the directors, members, officers,

employees, agents, customers and invitees of the Lessee or its associates.

1.3. Any provisions of the Agreement which either expressly or by their nature extend beyond the

expiration or termination of this Agreement shall survive such expiration or termination.

1.4. In the event of a conflict concerning the interpretation or implementation of any provisions

contained in this Agreement and those contained in the Proposal Call and/or Bid Proposal

and/or any of the annexures and/or schedules in relation thereto, the provisions contained

in this Agreement shall prevail.

1.5. Clause headings appear in this Agreement for purposes of reference only and shall not

influence the proper interpretation of the subject matter.

1.6. When any number of days is prescribed in this Agreement, same shall be reckoned

exclusively of the first and inclusively of the last day save where otherwise expressly

provided for.

1.7. Where figures are referred to in numerals and in words, the words shall, in the event of any

conflict in such reference, prevail.

1.8. All annexures, addenda and schedules attached to this Agreement and those to be attached

when approved in writing by both the Parties form an integral part hereof and words and

expressions defined in this Agreement shall, unless the context otherwise requires, bear

the same meaning in such annexures, addenda and schedules.

1.9. This Agreement shall be interpreted and applied in accordance with South African law.

5

1.10. All references to a statutory provision or enactment shall include references to any

amendment, modification or re-enactment of any such provision or enactment (whether

before or after the Commencement Date) to any previous enactment which has been

replaced or amended and to any regulation or order made under such provision or

enactment.

DESCRIPTION OF THE LAND

CoE, as the Lessor, leases to the Lessee, the whole or part of the Land.

LEASE

1.11. CoE hereby leases the Land to the Lessee who hires the Land on the terms and conditions

set out in this Agreement.

1.12. The Parties hereby acknowledge that this Agreement shall be registered against the title

deeds of the Land. The Lessee shall, upon receipt of notice from CoE, sign any and all

documents in order for the Lease to be so registered.

UNDERTAKING OF OPERATIONS

1.13. The Lessee is hereby authorized by coE to undertake the Operations in accordance and

compliance with the applicable laws.

1.14. In undertaking the Operations, the Lessee warrants that it will use the degree of skill and

care that would reasonably be expected of a competent professional experienced in

carrying out operations of a similar nature, scope and complexity.

COMPENSATION FOR IMPROVEMENTS

1.15. The Parties agree that all of the Property Development carried out by the Lessee or its

legal successors will at all times remain the property of CoE; and

1.16. Upon termination of this Agreement CoE may elect to, in its sole discretion, to instruct the

Lessee to:

1.16.1. refrain from removing any and all improvements effected to the Land; or

1.16.2. remove all improvements effected to the Land, at the Lessee’s cost or

1.16.3. remove only the improvements CoE instructs it to remove, at the Lessee’s cost.

1.17. Make good any damage where improvements were removed.

1.18. For the avoidance of doubt, no compensation shall be payable by CoE to the Lessee for

any improvements effected to the Land by the Lessee.

6

DURATION

Subject to provisions as set out in this Agreement, the Land shall be leased by the Lessee for

the Lease Period.

DEPOSIT

1.19. The Lessee shall pay a deposit equivalent to 20% (twenty percent) of the annual rental

amount payable in the first year of this Agreement, as a deposit, which deposit shall be

invested in an interest bearing account by CoE and shall be refundable to the Lessee

should this Agreement be terminated for any reason whatsoever, or alternatively, at the

Termination Date.

1.20. Notwithstanding the provisions of clause 7.1 above, the Lessee may provide CoE with a

deposit that takes the form of a bank guarantee for a value that is the equivalent of 20%

(twenty percent) of the annual rental amount payable in the first year of this Agreement.

1.21. Notwithstanding the provisions as contained in clause 7.1 above, CoE shall be entitled to

retain such deposit to the extent necessary in order to set off any amount legally due and

payable by the Lessee to CoE in terms of this Agreement.

1.22. From the second Year of this Agreement, the Lessee shall be obliged to pay to CoE such

additional amounts as are required in order that the deposit held by CoE at all times

represents 20% of the rental amount payable as agreed upon in terms of clause 8 below.

RENTAL

1.23. The rental amount payable by the Lessee to CoE in respect of the Land shall:

1.23.1. be payable Monthly in advance on or before the 1st Day of each consecutive Month;

1.23.2. be an amount of [__________________________________________] ,inclusive of VAT,

for the first year of this Agreement; and

1.23.3. escalate by __% on an on each anniversary of the Commencement Date.

1.24. Notwithstanding of the provisions of clause 8.1 above, the Parties shall review the rental

amounts payable in terms of this Agreement every 5 Years from the Commencement Date

in order to ensure that such rental amount is at all times market-related, taking into account

factors such as:

1.24.1. CPI; and

1.24.2. capital improvements on the Land.

7

1.25. Following the review undertaken by the Parties in accordance with clause 8.2 above, the

Parties may agree to revise the rental amounts payable by the Lessee in terms of this

Agreement.

1.26. Should the Parties fail to reach agreement as to the amount by which the rental amount

shall be adjusted in accordance with clause 8.3 above, then the rental amounts payable

by the Lessee in terms of this Agreement shall be established by a valuer appointed jointly

by the Parties (failing agreement, such valuer shall be appointed by the South African

Council for Property Valuers), who shall act as an expert and not an arbitrator.

1.27. The valuer appointed for purposes of determining to rental amount payable by the Lessee

in terms of this Agreement will be required to have:

1.27.1. experience of not less than 10 (ten) Years in determining market related rentals

immediately prior to his/her appointment for this purpose; and

1.27.2. as much regard as shall be possible to rental amounts prevailing for similar premises in

the same vicinity at such time and the rate at which such rentals are expected to

escalate during the ensuing period.

1.28. The decision of the estate agent/valuer shall be final and binding on the Parties, subject

to the approval of the Council.

1.29. The Parties shall be jointly responsible for all costs and charges incurred in implementing

the above provisions, save that each Party shall be responsible for the payment of its own

legal costs that it may incur.

1.30. The Lessee shall make payment of the rental amount to the Lessee by way of electronic

transfer into the following banking account:

1.31. All rental amounts paid by the Lessee in terms of this Agreement by the Lessee shall be

made free from deduction or set-off.

NAME:

BANK:

ACCOUNT NUMBER:

BRANCH CODE:

8

CONDITIONS OF THE LAND

1.32. The condition of the Land shall be the sole responsibility of the Lessee. Accordingly, the

Lessee shall be deemed to have:

1.32.1. carried out a ground physical and geophysical investigation;

1.32.2. satisfied itself as to the condition of the Land, including the risk of injury or damage to

property affecting the Land, and all other material considerations pertaining thereto;

1.32.3. taken steps reasonably required and possible to satisfy itself as to the adequacy of the

rights of access to and through the Land;

1.32.4. satisfied itself as to the possibility of interference by persons other than CoE with access

to or use of, or rights in respect of the Land;

1.32.5. satisfied itself as to the possibility of any land claims in respect of the Land; and

1.32.6. satisfied itself as to the precautions, times and methods of working necessary to prevent

any nuisance or interference, whether public or private, being caused to any third party.

1.33. For the avoidance of doubt, the Lessee accepts full responsibility for all matters referred

to in clause 9.1 above, and the Lessee shall not be entitled to make any claim against

CoE of any nature whatsoever, on any grounds including the fact that incorrect or

insufficient information on any matter relating to the Land was given to it by any person,

whether or not authorised by CoE (save for any material information which was knowingly

withheld by CoE prior to the date of signing of this Agreement and which the Lessee or its

representatives could not reasonably have been aware of).

1.34. Notwithstanding the provisions as contained in this clause 9, CoE confirms that it has not

granted any person other than the Lessee the right to gain access to, or use of title to, the

Land which may affect the use of the Land by the Lessee.

MUNICIPAL RATES AND CHARGES

1.35. The Lessee shall:

1.35.1. pay for all Rates payable to the local or other authority in respect of the Land and any

improvements thereon. For the purposes of this clause 10.1.1, the fact that ownership

of the Land vests in CoE and that CoE is a local authority shall not be taken into account

for payment of any Rates payable by the Lessee; and

REFERENCE NUMBER:

9

1.35.2. enter into such agreements as shall be reasonably required by CoE in its capacity as the

local authority for the delivery of bulk municipal services including water, electricity,

refuse removal, and any applications and/or approvals.

USE OF LAND

1.36. The use of the Land by the Lessee is subject to this Agreement, as well as the Council

Conditions.

1.37. The Lessee shall not be entitled to use the Land for any other purpose without the prior

written consent of CoE.

1.38. All operating costs associated with the Lessee’s activities on the Land shall be strictly

borne by the Lessee and CoE shall not incur any liability in respect thereof whatsoever,

now or in the future.

1.39. The Lessee shall at all times use the Land and/or carryout the Operations in a manner

that is compliant with the applicable laws.

SIGNS

The Lessee and/or its legal successors and/or assigns shall have the right to erect any sign related

to any business operated on the Land on the condition that such signs comply with applicable laws.

INSURANCE


1.40.1. procure reasonable insurance in respect of the Land as required under the applicable law,

the costs of which will be borne by Lessee;

1.40.2. ensure that insurance taken out, and maintained, that is adequate to cover any claims by

any third party that may be instituted against CoE howsoever arising; and

1.40.3. annually provide CoE with such documentation as shall be reasonably be required by CoE

to verify that the insurance cover in relation to the Land is and/or remains to be in place.

ASSIGNMENT AND SUBLETTING

1.41. The Lessee shall not be entitled to:

1.41.1. cede or assign or mortgage or pledge any of the rights and obligations of the Lessee under

this Agreement;

10

1.41.2. place anyone else in occupation of the Land or any part thereof, on any conditions

whatsoever or for any reason whatsoever and/or

1.41.3. sub-lease or give up possession of the Land, in whole or part,

without the prior written consent of CoE, which consent shall not be unreasonably

withheld.

RIGHTS AND OBLIGATIONS OF THE LESSEE


1.42.1. at its own risk and expense keep and maintain the Land in a clean sanitary and good

condition;

1.42.2. not knowingly or intentionally contravene or permit the contravention of any law, by-law or

statutory regulation or the conditions of any permit or consents relating to the Land;

1.42.3. not contravene or permit the contravention of any of the conditions of title under which

CoE holds title, if any, nor any laws which CoE is required to observe by reason of its

ownership in the Land;

1.42.4. have no claim of any nature whatsoever against CoE, or its employees or agents whether

for damages or cancellation of this Agreement in respect of any damage caused to the

Lessee’s fixtures, fittings and furniture kept in or on the Land or any other damage or

loss caused to or sustained by the Lessee in or in respect of the Land or loss of life

and/or injury to person as a result of water seepage or leakage wherever and

howsoever occurring in the Land, or by rain, hail, lightning, fire, riot or civil commotion

or as a result of any other vis major or casus fortuitous, save to the extent that such

damage is caused by the gross negligence of CoE, its agents or contractors and such

liability is not within the ambit of any indemnities provided by statute in favour of CoE;

1.42.5. procure that all improvements and/or activities on / or relating to the Land in the form of,

inter alia, design, construction, or otherwise which are effected by the Lessee on/or

relating to the Land comply with the applicable laws and are not in breach of any of the

provisions of the Land title deeds; and

1.42.6. from the Commencement Date take all steps as may be necessary to keep the Land free

from intruders and/or squatters, as permissible by the applicable laws.

RIGHTS AND OBLIGATIONS OF CoE

1.43. CoE undertakes and/or warrants that:

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1.43.1. it is the lawful and sole owner of the Land and that there are no encumbrances, mortgages,

liens or security interests on the Land known to CoE other than those divulged to the

Lessee and/or created pursuant to this Agreement;

1.43.2. the Land shall be made available for occupation and use by the Lessee on the

Commencement Date, or as soon as reasonably practicable and for the Lease Period;

and

1.43.3. provide reasonable assistance to the Lessee in defending and dealing with any Land

claims pertaining to the Land.

THIRD PARTY CLAIMS

Where a claim or proceeding is made or brought against CoE which arises out of the

infringement of any rights of a third party by the Lessee (other than rights relating to the

exercise of administrative functions and/or powers by CoE) in connection with the Land or

any construction and/or development on the Land, then, unless such infringement has arisen

out of the use of any intellectual property or information by or on behalf of CoE or is an

infringement of third party rights granted by CoE but not disclosed to the Lessee, the Lessee

shall (by signing this Agreement) indemnify and hold CoE harmless at all times from and

against all such claims and proceedings.

MAINTENANCE AND REPAIRS

1.44. The Lessee shall at its own expense and without recourse to CoE:

1.44.1. throughout the Lease Period maintain in good order and condition the Land, including any

building thereupon, the grounds and gardens;

1.44.2. promptly repair or make good all damage occurring in the Land and/or any building

thereupon from time to time during the Lease Period, whatever the cause of such

damage; and

1.44.3. upon the termination of this Agreement, howsoever and whenever it terminates, return the

Land and all such parts thereof to CoE in good order, condition and repair, fair wear

and tear excepted.

1.45. Should the Lessee fail to carry out any of its obligations under this Agreement with regard

to any maintenance, repair or replacement, CoE shall be entitled, without prejudice to any

of its other rights or remedies, to effect the required item of maintenance, repair or

replacement and to recover the cost thereof from the Lessee on demand.

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EXCLUSION OF CoE FROM CERTAIN LIABILITY AND INDEMNITY

1.46. The Lessee shall have no claim for damages against CoE arising out of, loss or damage

caused to stock in trade, furniture, equipment, installations, records or any other articles

or assets of any nature whatsoever, kept on the Land, or injury or loss of life of any person

whomsoever not due to the gross negligence of CoE, and the Lessee may not withhold or

delay any payment due to CoE by reason directly or indirectly of:

1.46.1. a non-material breach by CoE of any of its obligations under this Agreement

1.46.2. any act or omission of CoE or any agent or servant of, or contractor to, CoE, whether or

not negligent, or otherwise actionable at law, and including (without limiting the

generality of the aforegoing) any act or omission of any cleaner, maintenance person,

handyman, artisan, labourer, workman, watchman, guard or caretaker;

1.46.3. the condition or state of repair at any time of the Land or any part of the Land;

1.46.4. any failure or suspension of, or any interruption in, the supply of water, electricity, gas, air-

conditioning, heating, or any other amenity or service to the Land, or any part of the

Land, (including, without generality being limited, any cleaning service), whatever the

cause;

1.46.5. any breakdown of, or interruption in the operation of, any machinery, plant, equipment,

installation or system situated in or on, or serving, the Land or any part of the Land,

and including (but without limiting the generality of the aforegoing) any lift, geyser,

boiler, burglar alarm, or security installation or system, again regardless of cause;

and/or

1.46.6. any other event or circumstances whatsoever occurring, or failing to occur, upon, in, or

about the Land, whether or not CoE could otherwise have been held liable for such

occurrence or failure, and the Lessee indemnifies CoE against all liability to any of the

Lessee’s associates, directors, members, agents, customers, servants, guests and

other invitees of the Lessee or of any of its associates, and all other persons who may

enter upon the Land or any parts thereof through or under the Lessee, in consequence

of any such matter as is referred to in clauses 19.1.1 to 19.1.5 above.

1.47. CoE shall not, however, be excused from specific performance of any of its obligations

under this Agreement, whether express or implied, and particularly (but not only) its

obligations to afford the Lessee occupation and enjoyment of the Land as contemplated

by this Agreement;

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1.48. CoE does not warrant that the Land will be suitable for the purposes of the Lessee or any

of its associates or that the Lessee or any of its associates will be granted any license or

consent which may be necessary for the carrying on of any business or activity in the

Land.

1.49. The provisions of this clause 19 shall survive the termination of this Agreement.

CoE’S RIGHTS OF ENTRY AND CARRYING OUT OF WORKS

CoE’s representatives, agents, servants and contractors may at all reasonable times, without

thereby giving rise to any claim or right of action on the part of the Lessee or any other

occupier of the Land enter the Land, or any part of the Land, in order to inspect them or to

perform any other lawful function in the bona fide interests of CoE. CoE shall ensure that this

right is exercised with due regard for, and a minimum of interference with, the beneficial

enjoyment of the Land by those in occupation thereof.

RULES

1.50. The Lessee shall at all material times comply with such reasonable rules and regulations

as are laid down in writing by or on behalf of CoE for observance by the Lessee and other

occupiers of the Land, their customers and their invitees, including (without generality

being limited) rules and regulations in connection with:

1.50.1. the security of the Land and the protection of persons and Land thereon, including in

particular (without generality being restricted) any rules for the control and identification

of persons and vehicles entering the Land or any parts thereof;

1.50.2. the driving and parking of vehicles on or about the Land; and

1.50.3. the utilisation of amenities and facilities on the Land.

1.51. Clause 21.1 shall not be construed as implying that CoE assumes any liability which it

would not otherwise have had in connection with the subject matter of any such rule or

regulation.

DAMAGE TO OR DESTRUCTION OF LAND

1.52. If the Land is destroyed or so damaged that they can no longer be beneficially occupied,

this Agreement shall terminate unless the Parties agree otherwise in writing.

1.53. If the Land is significantly damaged but can still be beneficially occupied, this Agreement

shall remain in force and CoE shall repair the damage to the Land without undue delay

but the rental amount shall be abated so as to compensate the Lessee fairly for the effects

of the damage and repair work on the enjoyment of the Land. Failing agreement on such

14

abatement or on the applicability of this clause to any particular circumstances, the matter

shall be referred to an expert appointed by the Parties jointly, or, if they do not agree on

such appointment, nominated by the President for the time being of South African Council

for Property Valuers, and the decision of such expert shall be final and binding. The

expert’s fees and disbursements, including any inspection costs, shall be borne and paid

by the Parties in equal shares, or as determined by the expert. Pending determination of

the abatement the Lessee shall continue to pay the full rent for the Land as if they had not

been damaged (or be excused from the payment of rent for the Land), and as soon as the

matter has been resolved, CoE shall make the appropriate repayment to the Lessee (or

the Lessee shall make up the arrears in the rental amount payable as abated).

1.54. Subject to clause 19, if any damage to the Land or the destruction thereof is caused by an

act or omission for which either Party is responsible in terms of this Agreement or in law,

the other Party shall not be precluded, by reason of any of the aforegoing provisions of

this clause 21, from exercising or pursuing any alternative or additional right of action or

remedy available to the latter Party under the circumstances (whether in terms of this

Agreement or in law).

CONFIDENTIAL INFORMATION

1.55. Each Party hereby undertakes to the other Party, for the continuance of this Agreement

and for an indefinite period from the Termination Date or expiry or cancellation of this

Agreement:

1.55.1. to keep confidential all Confidential Information concerning the business and affairs of the

other Party that it obtains or receives from the other Party or any third party, whether

such information is obtained in writing (including information contained in electronic

format), orally, visually or in computer language or by reason of inspection go

documentation or other matter;

1.55.2. not without the other Party’s written consent to disclose the Confidential Information in

whole or in part to any person save its Personnel involved in the implementation of this

Agreement, and who have a need to know the Confidential Information;

1.55.3. to use the Confidential Information solely in connection with the implementation of this

Agreement and not for its own benefit or that of any third party; and

1.56. The provisions of 23.1 shall not apply to the whole or any part of the Confidential

Information which is:

1.56.1. already known to the receiving Party without obligation of confidence;

15

1.56.2. independently developed by the receiving Party;

1.56.3. publicly available without breach of this Agreement;

1.56.4. lawfully received by the receiving Party from a third party;

1.56.5. released for disclosure by the disclosing Party with its written consent; and/or

1.56.6. required to be disclosed in response to a valid order of court or other governmental

agency, or if disclosure thereof by the disclosing Party is otherwise required by law.

1.57. If a Party is obliged to divulge Confidential Information in terms of clause 23.2.6 it shall (to

the extent possible), before the divulgence of the Confidential Information, inform the other

Party of its obligation to so divulge the Confidential Information.

1.58. Each Party undertakes to the other to make all its relevant Personnel aware of the

confidentiality of the Confidential Information and the provisions of this clause 23 and to

take all such steps as shall from time to time be necessary to ensure compliance by its

Personnel with the provisions of this clause 23.

1.59. Upon the expiry or termination of this Agreement for any reason whatsoever, each Party

shall promptly return to the other Party all documents, records and any other mediums

containing the Confidential Information of the other Party (as well as all copies, notes or

reproductions thereof).


DISPUTE RESOLUTION

1.61. The Parties accept that disputes may arise between the Parties during the course of this

Agreement.

1.62. Unless otherwise provided for in this Agreement, any dispute which arises shall be referred

to the Accounting Officer and an authorised representative of the Lessee who shall use

their best endeavours to resolve the dispute within 14 (fourteen) Days of the dispute

having been referred to them.

1.63. Should the Accounting Officer and the authorised representative of the Lessee be unable

to resolve a dispute in accordance with the aforegoing, such dispute shall be finally

resolved in accordance with the rules of the Arbitration Foundation of South Africa by an

arbitrator or arbitrators appointed by the Arbitration Foundation of South Africa.

1.64. Either Party may demand that a dispute be referred to arbitration by giving written notice

to that effect to the other Party. This clause shall not preclude either Party from obtaining

16

relief on an urgent basis from a court of competent jurisdiction pending the decision of the

arbitrator.

1.65. The arbitration referred to in clause 24.4 above, shall be held immediately, with a view to

its being completed within 15 (fifteen) Days after it is demanded.

1.66. The arbitrator may:

1.66.1. investigate or cause to be investigated any matter, fact or thing which he/she considers

necessary or desirable in connection with the dispute and for that purpose and shall

have the widest powers of investigating all documents and records of any Party having

a bearing on the dispute;

1.66.2. interview and question, under oath, the Parties or any of their representatives or any

person with information about the dispute;

1.66.3. decide the dispute according to what he/she considers just and equitable in the

circumstances; and

1.66.4. make such award, including an award for specific performance, damages or otherwise, as

he /she in his/her sole discretion may deem fit and appropriate.

1.67. The arbitrator’s decision and award shall be in writing with reasons and shall be final and

binding upon the Parties. The arbitrators award may, on application by either Party to a

court of competent jurisdiction, and after due notice is given to the other Party, be made

an order of court.

1.68. The fact that any dispute has been referred to or is the subject of arbitration in terms of

this clause 24 as well as any information submitted or furnished to the arbitrators or in any

other manner forming part of the record of any arbitration proceedings, shall be kept

confidential by the Parties, and the Parties shall use their reasonable endeavours to

procure that all their employees, agents or advisers who are involved in or who obtain

knowledge of any Confidential Information disclosed during such proceedings, shall be

made aware of, and shall undertake in writing to be bound by, and to comply with, the

provisions of this clause 24.8.


BREACH

1.70. Should either Party commit a material breach of this Agreement and fail to remedy such

breach within 30 (thirty) Days of written demand from the other Party, then such other

17

Party may, in addition to any other rights and remedies that it may have, including the right

to:

1.70.1. recover damages;

1.70.2. claim specific performance; or

1.70.3. terminate this Agreement, such termination to be effective immediately upon receipt by

the defaulting Party of written notice to that effect.

1.71. Should the Lessee:

1.71.1. effect or attempt to effect a compromise or composition with its creditors;

1.71.2. be provisionally or finally liquidated or be placed under business rescue whether

provisionally or final;

1.71.3. cease or threaten to cease to carry on its normal line of business in the Republic of South

Africa or default or threaten to default in the payment of its liabilities generally, or

commit any act or omission which would, in the case of an individual, be an act of

insolvency in terms of the Insolvency Act, 1936 (as amended); and/or

1.71.4. dispose of a material portion of its undertaking or assets, then CoE may terminate this

Agreement on written notice to the Lessee in which event such termination shall be

effective upon receipt by the Party in breach of written notice to that effect. Such

termination shall be without prejudice to any claim which CoE may have against the

Lessee as at the date of the occurrence of any event envisaged in clause 25.2 above

and in which case, all rights and/or obligations due by the respective Parties at the

Termination Date will fall due.

COSTS

1.72. All costs including but not limited to:

1.72.1. advertising costs;

1.72.2. rezoning costs;

1.72.3. valuation costs; and

1.72.4. legal costs, pertaining to this Agreement shall be borne by the Lessee.

1.73. Notwithstanding the provisions of clause 26.1 above, the costs of the registration of this

Agreement against the title deeds of the Land will be borne by CoE.

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DOMICILIA AND NOTICES

1.74. The Parties choose as their domicilia citandi et executandi the addresses mentioned in

clause 27.2 below, provided that such domicilium of either Party may be changed by

written notice from such Party to the other Party with effect from the date of receipt or

deemed receipt by the latter of such notice.

1.74.1. CoE: Department of Real Estate

Kempton Park Civic Centre

Corner Swart & Pretoria Road

Kempton Park

1620

1.74.2. The Lessee: __________________________________

___________________________________

___________________________________

___________________________________

1.75. Any notice, acceptance, demand or other communication properly addressed by either

Party to the other Party at the latter’s domicilium in terms hereof for the time being and

sent by prepaid registered post shall be deemed to be received by the latter on the 5th

(fifth) business Day following the date of posting thereof. This provision shall not be

construed as precluding the utilisation of other means and methods (including

telefacsimile) for the transmission or delivery of notices, acceptances, demands and other

communications, but no presumption of delivery shall arise if any such other means or

method is used.

WHOLE AGREEMENT

1.76. This Agreement is the entire agreement between the Parties and supersedes all previous

agreements between the Parties, whether tacit, oral or written.

1.77. Neither Party relies, in entering into this Agreement, on any warranties, representations,

disclosures or expressions of opinion which have not been incorporated into this

Agreement as warranties or undertakings.

1.78. No variation or consensual cancellation of this Agreement shall be of any force or effect

unless reduced to writing and signed by both Parties.

NON-WAIVER

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1.79. Neither Party shall be regarded as having waived, or be precluded in any way from

exercising, any right under or arising from this Agreement by reason of such Party having

at any time granted any extension of time for, or having shown any indulgence to, the

other Party with reference to any payment or performance hereunder, or having failed to

enforce, or delayed in the enforcement of, any right of action against the other Party.

1.80. The failure of either Party to comply with any non-material provision of this Agreement

shall not excuse the other Party from performing the latter’s obligations hereunder fully

and timeously.

EXISTING ENCUMBRANCES, RIGHTS AND SERVITUDES

This Agreement does not affect any existing encumbrances, rights and servitudes attached

to the Land.

GOOD FAITH

Each Party hereby undertakes during the existence of this Agreement –

1.81. to show to each other, at all times, the utmost good faith in its dealings with each other;

and

1.82. to do all of such reasonable things, perform all such reasonable actions and take all such

reasonable steps as may be open to it and necessary for and incidental to the

implementation of the terms and conditions of this Agreement.

RECORDS AND REPORTS

1.83. The Lessee shall keep record of all of the information and reports relating to the following,

as applicable:

1.84. the use and occupation of the Land;

1.85. all construction work and development on the Land;

1.86. service installations;

1.87. any encumbrances over the Land and other improvements thereof; and

1.88. any other information as may be reasonably required by CoE to be kept by CoE in relation

to the Land.

SALE OF LAND

The validity of this Agreement shall not in any way be affected by the transfer of the Land from CoE

pursuant to a sale thereof. It shall accordingly, upon registration of transfer of the Land into the

name of a third party purchaser, remain of full force and effect save that the third party purchaser

20

shall be substituted for CoE as lessor and acquire all rights and be liable to fulfil all the obligations

which CoE, as lessor, enjoyed against or was liable to fulfil in favour of the Lessee in terms of this

Agreement.

JURISDICTION

Any action application arising out of this Agreement, or any cancellation thereof shall be brought in

the Magistrates Court having jurisdiction in respect of the dispute or the Land.

21

Signed at ____________ on this _________ day of ___________________20....

AS WITNESSES:

1. ____________________

2. ____________________ ___________________________

for and on behalf CoE, duly authorised

thereto

Signed at ____________ on this _________ day of __________________ 20….

AS WITNESSES:

1. ____________________

2. ____________________ ___________________________

for and on behalf of the Lessee, duly authorised thereto.