AGREEMENT OF LEASE

Made and entered into by and between

PATRICK SMUTS

IDENTITY NUMBER : 550303 5211 083

("the Landlord”)

AND

THE GROSVENOR GUEST HOUSE CC

REGISTRATION NUMBER : 2006/018105/23

("the Tenant”)

in respect of the Property described as 37 Forest Hill Road, Simon’s Town, Cape Town
(Erf 1214 Simon’s Town)
(“the Premises”)
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IT IS HEREBY AGREED THAT THE ABOVENAMED PARTIES SHALL LET AND HIRE THE
ABOVENAMED PROPERTY ON THE TERMS AND CONDITIONS CONTAINED HEREIN,
AND ANNEXURES HERETO SHALL FORM AN INTEGRAL PART OF THIS AGREEMENT.

1 DEFINITIONS

1.1 “agreement” means this Agreement of Lease;

1.2 Landlord” means Patrick Smuts, Identity Number : 550303

5211 083

1.3 “Premises” means 37 Forest Hill Road, Simon’s Town, Cape

Town.

1.4 “Tenant” means The Grosvenor Guest House CC,

Registration Number : 2006/018105/23

1.5 “RHA” means the Rental Housing Act 50 of 1999.

2 LEASE PERIOD

This Lease shall commence on 1st October 2006 and terminating as agreed to
between the parties.

3 RENT

The rental for the Premises shall be the sum of R30 000.00 (Thirty Thousand
Rand) per month and the Tenant hereby acknowledges such rental to be
reasonable and which shall be paid in advance, without any deduction
whatsoever, to the Landlord’s account

4 USAGE

The Tenant shall use the leased Premises only for guest house purposes and as
a place of residence for the Tenant and his family.

5 RATES AND TAXES

The Tenant shall pay all rates and taxes and/or levies due in respect of the
Premises to the local authority, body corporate, share block company, or
homeowners’ association concerned.
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6 ELECTRICITY AND WATER

The Tenant shall pay, as and when they become due, all charges for electrical
current, water, service charges, sewerage, refuse and telephone charges in
respect of the Premises, and shall make all necessary arrangements in that
regard directly with the Landlord and suppliers, plus VAT thereon if required by
the Landlord, in respect of the Premises.

7 MAIN WALLS AND ROOF

The Tenant shall keep all walls, roof, plumbing and electrical fixtures in order.

8 MAINTENANCE OF INTERIOR AND GARDEN

The Tenant shall be responsible for the maintenance of the inside of the
Premises and the garden subject to the provisions below, and further
acknowledges to have received same in good condition and undertakes to
maintain and re-deliver up the same at the expiration or sooner termination of
this lease, in a like good order and condition as at the inception of the lease,
fair wear and tear excepted. In the event of the Tenant not maintaining the
reasonable standard of the garden, the Landlord, after due notice, reserves
the right to instruct a garden service to do so on the Tenant’s behalf, payment
of which will be for the Tenant’s account.

9 TENANT’S LIABILITY

The Tenant acknowledges that, during the currency of this lease, he/she is
liable for the repair or replacement of any damaged door handles, locks,
keys, glass, window fasteners, bath, wash hand basins, sanitary appliances
and water taps. Further, the Tenant shall take good care of all paintwork and
fitted carpets and, with the exception of fair wear and tear, shall be liable for
the removal of all stains or marks found thereon during inspection by the
Landlord or her agent. The Tenant further agrees to inspect the property with
the Landlord or his agent, before taking occupation, in terms of section 5(3)(e)
of the Rental Housing Act 1999, to compile a list of defects (which shall be
attached to and form part of this lease) so as to protect his/her liability for the
aforementioned; it is agreed that should the Tenant fail to comply with this
request, the property will be deemed to have been found in a perfect state of
repair. The Tenant further undertakes to keep the Premises clean and tidy and
free from all rubbish.

10 ALTERATIONS

10.1 The Tenant shall not make any alterations or additions, whether
structural or otherwise, to the Premises or to any portion thereof, nor
shall the Tenants interfere with the electrical installations other than
those provided and approved by the Landlord.

10.2 Should the Landlord consent to any alterations or additions to the

Premises or any portion thereof, the Landlord shall be entitled, at his sole
discretion, on termination of this lease agreement, to require the Tenant
to restore the Premises as the Premises were prior to any alteration or
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addition and the Tenant shall be responsible for the expenses of such
restoration.

10.3 The Tenant acknowledges herein that he/she has no claim of any
nature whatsoever for any improvement, addition or alteration
effected by the Tenant to the Premises, and the Tenant has no right to
remove any improvements, alterations or additions without the
Landlord’s written consent, which consent is in the absolute discretion
of the Landlord.

11 NO ANIMALS

No animals or pets of any kind shall be kept upon any part of the Premises,
without the prior written consent of the Landlord.

12 FIRE/FLOOD

12.1 In the event of a fire or flood occurring on the Premises, the Tenant shall
be entitled to a total or partial remission of his/her rent according to the
period during which he/she is deprived of the beneficial usage of the
Premises, but the Tenant shall not have any claim upon the Landlord for
damages in consequence of any such deprivation.

12.2 The Landlord shall not be liable for any injury to the person or damage
to the property of the Tenant or its employees or those persons
occupying the premises under this lease whilst using the premises
irrespective of the ownership of the property so damaged.

13 COMBUSTIBLES

The Tenant hereby binds him/herself not to use any apparatus or carry on any
trade or process, nor keep any combustibles or hazardous goods on the
Premises which would in any way violate the Landlord’s policy.

14 NO CESSION OR SUB-LEASE

The Tenant shall not cede nor assign this lease, nor sub-let the Premises or any
portion thereof, nor part with possession of the Premises or any portion thereof
without the written consent of the Landlord.

15 DEFAULT

Should the Tenant fail to pay the rental or any other amount due in terms of
this agreement, on due date, or commit any breach of the terms or conditions
of this lease, and fail to remedy such default after receiving written notice
from the landlord or his agent to do so, then the Landlord shall have the right
under section 4(5)(c) of the “RHA” forthwith to cancel the lease and to re-
enter and take possession of the said Premises and dispose thereof as he may
think fit, after having supplied 20 business’ days notice to the defaulting Tenant
and having afforded the Tenant an opportunity to remedy his/her breach
within such 20 day period, without prejudice to any claim on the Landlord’s
part, for arrear rental, damages, or otherwise. The Tenant acknowledges that
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he/she will be liable for payment of interest on arrear rental, such interest to be
calculated as the prevailing bond rate. The Tenant further acknowledges that
any extension of time for payment of any rental, or any other indulgence that
may be granted by the Landlord, shall not constitute a waiver of, any in any
way prejudice, the Landlord’s rights to terminate the lease under the
provisions of this clause or any of its other rights under this agreement.

16 INSPECTION / ACCESS

16.1 The Tenant hereby agrees that the Landlord and/or his Letting Agent
shall be entitled, after due notice, to inspect the Premises between
08h30 and 17h00 on weekdays and all other reasonable times, and
agrees to make arrangements to this end.

16.2 The Tenant hereby agrees to permit the Landlord and/or his duly
authorised agent access to the property, with prospective purchasers
or Tenants thereof, at all reasonable times during the currency of this
lease, and agrees that they may display “for sale”, “on show”, “sold
by”, “to let” or “let by” signs on the Premises.

16.3 Within 3 (three) days prior to the termination of this Lease or any
extension/renewal thereof the Landlord and Tenant must, at a mutually
convenient time, hold a joint inspection of the Premises with a view to
ascertaining if there was any damage caused to the Premises during
the Tenant’s occupation thereof.

16.4 The failure of the Landlord to inspect the dwelling in the presence of the
Tenant is deemed to be an acknowledgement by the Landlord that the
dwelling is in a good and proper state of repair, and the Landlord will
have no further claim against the Tenant save for the Landlord's right
recorded below.

16.5 In the event that the Tenant fails to respond to the Landlord’s request
for an inspection prior to the termination of the Lease, the Landlord
must, on termination of the Lease, inspect the dwelling within 7 (seven)
days from such termination in order to assess any damage or loss
(which includes the replacement of lost keys/remotes) that occurred
during the tenancy. The Landlord is entitled to recover such damage
and/or loss from the Tenant.

17 RIGHT TO CEDE

17.1 The Landlord shall at any time and without the consent of or prior
notice to the Tenant be entitled to sell or otherwise dispose of the
premises to any person whomsoever and/or (if the Landlord is the
owner of the premises) to transfer ownership of the premises to any
other person whomsoever.

17.2 The Tenant shall not, in consequence of any such sale and/or disposal
and/or transfer, be entitled to terminate this Lease and shall (unless the
Landlord elects to remain under this Lease) be obliged, as from the
relevant date, to accept such other person as the Landlord under this
Lease
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18 NOISE

The Tenant agrees to conduct him/herself in an orderly fashion so as not to

cause a nuisance to his/her neighbours, and accepts full responsibility for any
noise and/or nuisance caused by any person residing with or visiting the
Tenant.

19 DOMICILIUM

The Tenant hereby chooses the property as his/her domicilium citandi et

executandi and consents to the jurisdiction of the magistrate’s court in respect
of any legal proceedings arising from this lease.

20 CARPETS

The Tenant agrees to have the carpets professionally steamed or dry-cleaned

on vacation of the property and agrees that, should he/she fail to do so, the
Landlord and/or his Agent, may instruct a professional person to do so at the
Tenant’s cost.

21 BATTERY-POWERED EQUIPMENT

The Tenant agrees to be responsible for the replacement of any and all
batteries in respect of battery-powered equipment situate at the Premises,
including, but not exclusive to, the security system installed at the Premises,
and shall be liable for the costs thereof as well as for the maintenance of such
battery-powered equipment and any related technician call-out costs related
thereto.

22 ENTIRE CONTRACT

The parties agree that this agreement and any annexures thereto contains the
entire contract and that, should there be any variation of this agreement, it
will not be binding unless it is reduced to writing and signed by all parties to this
lease.

DATED AT CAPE TOWN THIS DAY OF SEPTEMBER 2006.

AS WITNESSES:

1.

2.
LANDLORD
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DATED AT CAPE TOWN THIS DAY OF SEPTEMBER 2006.

AS WITNESSES;

1.

2.
TENANT