Document:

Net 1 UEPS Technologies, Inc.: Exhibit 10.25 - Filed by newsfilecorp.com

Exhibit 10.25 
Page 1 of 36 

AGREEMENT OF LEASE 

 

 

 

MEMORANDUM OF AN AGREEMENT ENTERED INTO BY AND BETWEEN:

 

 

BUZZ TRADING 199 (PTY) LTD 
Registration
Number: 2007/021617/07 
VAT Registration Number:
4260246410 

herein represented by LANCE MANNING SEYMOUR
CHALWIN-MILTON 
in his capacity as DIRECTOR OF THE COMPANY, duly
authorised thereto; 
(hereinafter referred to as “the Lessor”) 

and 

NET 1 APPLIED TECHNOLOGIES SOUTH AFRICA (PTY)
LTD 
Registration No: 2002/031446/07 
VAT Registration
Number: 4780209849 

herein represented by HERMAN KOTZÉ 
ID Number :
_________________________________

in his capacity as DIRECTOR OF THE
COMPANY
duly authorised thereto; 
(hereinafter referred to as “the
Lessee”) 

The Lessor hereby lets to the Lessee who hereby hires the
Leased Premises described herein on the terms and conditions as set out in the
Schedule, Terms and Conditions of the Agreement of Lease and Annexures. 

INITIAL HERE 

Page 2 of 36 

INDEX 

	1.
      	SCHEDULE
      	3
      
	  	  	  
	  	TERMS
      AND CONDITIONS OF THE AGREEMENT OF LEASE 	8
      
	  	  	  
	2.
      	Interpretation
      	8
      
	3.
      	Lease
      Period 	10
      
	4.
      	Option
      to Renew 	10
      
	5.
      	Leased
      Premises 	11
      
	6.
      	Rental
      and Other Charges 	11
      
	7.
      	Payment
      	12
      
	8.
      	Maintenance
      and Alterations 	13
      
	9.
      	Management
      and use of the Property 	13
      
	10.
      	Services
      and other Charges payable by Lessee 	14
      
	11.
      	Defects
      	16
      
	12.
      	Cession,
      subletting and sale of business 	16
      
	13.
      	Breach
      	18
      
	14.
      	Re-Building
      	19
      
	15.
      	Insurance,
      damage and destruction 	19
      
	16.
      	Lessee’s
      General Obligations 	20
      
	17.
      	General
      	22
      
	18.
      	Change
      of Building Name 	23
      
	19.
      	Deposit
      (Cash / Bank Guarantee 	23
      
	20.
      	Suretyships
      	23
      
	21.
      	Advertising
      Signs 	23
      
	22.
      	FICA
      requirements 	24
      
	23.
      	Consent
      to credit verification 	24
      
	24.
      	Exercise
      of rights 	24
      
	25.
      	Signature
      	26
      

ANNEXURES TO THIS AGREEMENT 

	Annexure
      A 	Lessee
      Company Resolution 	
	Annexure
      B 	Bank
      Guarantee format 	NOT
      APPLICABLE 
	Annexure
      C 	Plan
      of Lease premises 	
	Annexure
      D 	Deed
      of Suretyship 	NOT
      APPLICABLE 
	Annexure
      E 	Re-instatement
      of Leased Premises 	

INITIAL HERE 

Page 3 of 36 

SCHEDULE 

	1. 	Particulars 	 	 
	  	  	 	 
	1.1 	 The Lessor 	:	Buzz Trading 199 (Pty) Ltd 
	  	  	 	Registration number: 
	  	  	 	2007/021617/07 
	  	  	 	Domicilium: 81 – 8th Avenue 
	  	  	 	Parktown North 
	  	  	 	Johannesburg 2001 
	  	  	 	 
	1.2 	The Lessee 	: 	NET 1 Applied Technologies South
      Africa (Pty) Ltd 
	  	  	 	Registration 
	  	  	 	Number :2002/031446/07 
	  	  	 	Domicilium: 3rd
      Floor 
	  	  	 	North Wing, 
	  	  	 	President Place, 
	  	  	 	Cnr Hood and Bolton Roads, 
	  	  	 	Rosebank, 2193 
	  	  	 	 
	1.3 	 Lessee’s Trading name 	:	NET 1 Applied Technologies 
	  	  	 	South Africa (Pty) Ltd 
	1.4 	Use of Leased Premises 	: 	Office facilities and related
      activities as currently used for and for no other purpose
      whatsoever 
	  	  	 	 
	1.5 	 Leased Premises 	:	President Place, 7 Hood Avenue, 
	  	  	 	Rosebank 
	  	  	 	and measuring approximately : 
	  	  	 	 
	  	  	 	Third Floor (North
      Wing)         
      938.72m2 
	  	  	 	Third Floor (West
      Wing)          
      938.72m2 
	  	  	 	 
				Fourth Floor (North
      Wing)        938.70m2
  
				Fourth Floor (West
      Wing)         938.70m2
    
	  	  	 	 
	  	  	 	Fifth Floor (North
      Wing)           
      938.70m2 
	  	  	 	Fifth Floor (West
      Wing)            
      938.70m2 
	  	  	 	 
	  	  	 	Sixth Floor (North
      Wing)          
      722.73m2 
	  	  	 	Sixth Floor (West
      Wing)           
      716.73m2 
	  	  	 	 
	  	  	 	Basement
      1                            
             620.00m2 
	  	  	 	 
				7    691.70m2(Seven thousand
      six hundred and Ninety one comma seven zero square meters)
      rentable area; 

INITIAL HERE 

Page 4 of 36 

				
      as demarcated on the plan attached hereto marked Annexure
      C. The plan only serves to identify the Leased Premises and no warranties
      are given in regard thereto. 

	  	  		     
	1.6 	Building 	: 	
      That Building upon the Property in which the Leased
      Premises are situated, known as President Place 

	  	  	 	  
	1.7 	Property 	:	ERF 208 ROSEBANK 
	  	  	 	  
	1.8 	Lease Dates 	 	  

	 	1.8.1 	Lease Period 	: 	
      5 (five) years from the commencement date
      

	 	  	  	 	
       

	 	1.8.2 	Commencement Date 	:	
      01 December 2011 

	 	  	  	 	
       

	 	1.8.3 	Termination Date 	:	
      30 November 2016 

	 	  	  		
       

	 	1.8.4 	Option to Renew 	: 	
      Option to renew for 1(One) year (hereinafter
      “Renewal Period”) to be exercised in writing as stipulated in clause 4 of
      the Terms and Conditions of the Agreement of Lease

	1.9 	Monthly Rental 	: 

	EXISTING AREA – 	 	  	  	  	  
	Third Floor 	- 	North Wing 	938.72m2 	West Wing 	938.72m2 
	Forth Floor 	- 	North Wing 	938.70m2 	West Wing 	938.70m2 
	Fifth Floor 	- 	North Wing 	938.70m2 	West Wing 	938.70m2 
	Sixth Floor 	- 	  	  	West Wing 	716.73m2 
	Basement 1 	  	  	620.00m2 	  	  
	  	  	  	  	  	  
	TOTAL 	  	  	6 968.97m2 	  	 

	YEAR 	PERIOD 	MONTHLY 
BASIC
      
RENTAL 	OP COSTS 	BASEMENT 
PARKING
      – 
234 BAYS 	SHADED
      
PARKING 
16 BAYS 	VAT 	TOTAL 
	YEAR 1 	01 DEC 2011 – 

      30 NOV 2012
    	R391 656.11 	R121 956.98 	R112 320.00 	R4 480.00 	R88 257.83 	R718 670.92 
	YEAR 	PERIOD 	MONTHLY 
BASIC
      
RENTAL 	OP COSTS 	BASEMENT 
PARKING
      – 
250 BAYS 	SHADED
      
PARKING 
0 BAYS 	VAT 	TOTAL 
	YEAR 2 	01 DEC 2012 – 

      30 NOV 2013
    	R430 821.73 	R134 152.67 	R132 000.00 	R0.00 	R97 576.42 	R794 550.81 
	YEAR 3 	01 DEC 2013 – 

      30 NOV 2014
    	R473 903.90 	R147 567.94 	R145 200.00 	R0.00 	R107 334.06 	R874 005.90 
	YEAR 4 	01 DEC 2014 – 

      30 NOV 2015
    	R530 772.37 	R165 276.09 	R162 624.00 	R0.00 	R120 214.14 	R978 886.60 
	YEAR 5 	01 DEC 2015– 

      30 NOV 2016
	R594 465.05 	R185 109.22 	R182 138.88 	R0.00 	R134 639.84 	R1 096 353.00
  

INITIAL HERE 

Page 5 of 36 

	NEW AREA – 	  	  	  
	 	 	 	 
	Sixth Floor 	- 	North Wing 	722.73m2 
	 	 	 	 
	TOTAL 	  	  	722.73m2 

	YEAR 	PERIOD 	MONTHLY 
BASIC
      
RENTAL 	OP COSTS 	VAT 	TOTAL 
	YEAR 1 	01 NOV 2011 – 

      30 NOV 2011
    	R0.00 	R12 647.78 	R1 770.69 	R14 418.46 
	 	01 DEC 2011 – 

      31 JUL 2012
    	R0.00 	R12 647.78 	R1 770.69 	R14 418.46 
	 	01 AUG 2012 – 

      30 NOV 2012
    	R40 617.43 	R12 647.78 	R7 457.13 	R60 722.33 
	YEAR 2 	01 DEC 2012 – 

      30 NOV 2013
    	R44 679.17 	R13 912.55 	R8 202.84 	R66 794.56 
	YEAR 3 	01 DEC 2013 – 

      30 NOV 2014
    	R49 147.09 	R15 303.81 	R9 023.13 	R73 474.02 
	YEAR 4 	01 DEC 2014 – 

      30 NOV 2015
    	R55 044.74 	R17 140.26 	R10 105.90 	R82 290.90 
	YEAR 5 	01 DEC 2015– 

      30 NOV 2016
	R61 650.10 	R19 197.10 	R11 318.61 	R92 165.81

	STORAGE AREA – 	  
	 	 
	Basement 1 	3 parking bays converted – Generator
      room 
	 	 
	Basement 3 	18 parking bays converted - Storerooms
    
	 	 
	TOTAL 	21 basement bays converted into storage
    

	YEAR 	PERIOD 	MONTHLY
      
BASIC 
RENTAL 	VAT 	TOTAL 
	YEAR 1 	01 DEC 2011 – 
30 NOV 2012
    	R5 400.00 	R756.00 	R6 156.00 
	YEAR 2 	01 DEC 2012 – 
30 NOV 2013
    	R5 940.00 	R831.60 	R6 771.60 
	YEAR 3 	01 DEC 2013 – 
30 NOV 2014
    	R6 534.00 	R914.76 	R7 448.76 
	YEAR 4 	01 DEC 2014 – 
30 NOV 2015
    	R7 318.08 	R1 024.53 	R8 342.61 
	YEAR 5 	01 DEC 2015 – 
30 NOV 2016
    	R8 196.25 	R1 147.47 	R9 343.72

	1.10 	Escalations 	Rental: 	
      10% (Ten percent) on years 2 and 3 and 12%
      (Twelve percent) on years 4 and 5 compounded per annum on the
      anniversary of the Commencement Date 

	  	  	  	     
			Operating Costs: 	
      10% (Ten percent) on years 2 and 3 and 12%
      (Twelve percent) on years 4 and 5 compounded per annum on the
      anniversary of the Commencement Date 

INITIAL HERE 

Page 6 of 36 

		
      Parking/storage: 
	
      10% (Ten percent) on years 2 and 3 and 12%
      (Twelve percent) on years 4 and 5 compounded per annum on the
      anniversary of the Commencement Date 

	1.11 	Parking Rental 	: 	
      Basement bays – R480 (excluding VAT) per parking
      bay per month 

	  	  	 	     
				
      Shaded bays – R280 (excluding VAT) per parking bay
      per month 

	  	  	 	     
	1.12 	Parking Bay/s 	: 	
      : 250 Basement bays – As per Annexure C(5-7)
      attached. 

	  	  	 	
                     
               Level 1 – 30 bays 

	  	  	 	
                     
               Level 2 – 59 bays 

	  	  	 	
                     
               Level 3 – 161 bays 

	  	  	 	     
	1.13 	Lessee’s pro rata share 	: 	
      63.36% calculated in terms of clause of the Terms
      and Conditions of the Agreement of Lease 

	  	  	 	     
	1.14 	Other Charges 	 	     

	 	1.14.1 	Rates and Taxes 	: 	
      The Lessee is responsible for their pro rata share of
      rates and taxes levied on the property and building that make up the
      development, which is equal to: R99 656.27 per month (Existing
      Area) 

	 	  	  	 	     
	 				
      The Lessee is responsible for their pro rata share of
      rates and taxes levied on the property and building that make up the
      development, which is equal to: R10 335.04 per month (New
      Area) 

	 	  	  	 	     
	 				
      Lessee’s pro rata share of increases (as recorded in
      clause 6.2 of the Terms and Conditions of the Agreement of Lease)
  

	 	  	  	 	     
	 	1.14.2 	Other charges 	: 	
      As recorded in clause 10 of the Terms and Conditions of
      the Agreement of Lease 

	1.15 	Lease Fee 	:	R2 500.00 (Five Hundred Rand)
      (excluding VAT) 
	 	 	 	 
	1.16 	Deposit (Cash / Bank
      Guarantee) 	:	NIL (NIL rand) 
	 	 	 	 
	1.17 	Personal Suretyship by 	:	NIL as recorded in the
      attached Annexure D 
	 	 	 	 
	1.18 	VAT Rate 	:	All amounts are exclusive of 14%
      or such other rate as promulgated from time to time 

INITIAL HERE 

Page 7 of 36 

	1.19 	Special Term 	:	 

The tenant will be granted a period of 30(thirty) days
beneficial occupation and an additional 240 (Two Hundred and forty days)
rent-free period in lieu of a tenant installation allowance granted by the
Landlord to the Tenant on the new area of 722.73m2
(6th Floor North Wing). The beneficial occupation
period is to allow the tenant, inter alia, to prepare the premises to commence
trading on the lease commencement date. No rent will be payable during the
beneficial occupation and rent-free period but services such as water,
electricity, sewerage, refuse removal, rates and taxes and operating costs at
R17.50/m2 will be billed and payable monthly by the Tenant. It is
specifically recorded that the Landlord shall use its best endeavours to grant
the tenant timeous access to the premises. Should the Tenant not be granted
access to the premises on the day specified above for reasons beyond the control
of the Landlord or its agents, the Tenant shall have no claim against either of
them and neither will the commencement date of the lease be affected by the
delay. 

INITIAL HERE 

Page 8 of 36 

TERMS AND CONDITIONS OF THE AGREEMENT OF LEASE 

	2. 	
      Interpretation

	 	 	 
		
      In the interpretation of this Agreement of Lease
      (including Schedules and Annexures hereto), unless the context clearly
      otherwise indicates:

	 	 	 
		2.1 	
      “the Building” means the Building in which the Leased
      Premises are located and as described in clause 1.6 of the
  Schedule.

	 	 	 
		2.2 	
      “the Commencement Date” and “Termination Date” means the
      date as recorded in clauses 1.8.2 and 1.8.3 of the Schedule.

	 	 	 
		2.3 	
      “Common Area” or “Common Areas” or “Common Amenities”
      means those portions of the Building and the Property not designed to form
      part of the gross lettable area of the Building or the Property of the
      Leased Premises including, but without derogating from the generality of
      the aforegoing, lifts (if applicable), staircases, toilet conveniences,
      loading zones, all parking, service roads, passages, service corridors and
      yards. Nothing contained in this definition shall be construed as imposing
      any obligation on the Lessor to provide any such conveniences as are
      specifically mentioned above, unless stipulated otherwise in this
      Agreement.

	 	 	 
		2.4 	
      the Common Amenities” means those facilities, Common Area
      and services in the Building and/or Property available for use by, or
      supplied to the tenants on a non- exclusive basis and include inter
      alia, airconditioning, security services, Common Areas, visitor’s
      parking and such like.

	 	 	 
		2.5 	
      “the Land” means the Land on which the Building is
      located;

	 	 	 
		2.6 	
      “the Leased Premises” means the Leased Premises let in
      terms of this Agreement of Lease as described in clause 1.5 of the
      Schedule and as depicted in the plan attached hereto marked Annexure C,
      which only serves to identify the Leased Premises and no warranties are
      given in regard thereto.

	 	 	 
		2.7 	
      “the Lessee” includes its principals, directors, agents,
      employees, contractors, licensees and invitees and similar categories of
      persons.

	 	 	 
		2.8 	
      “the Lessee’s pro rata share” shall be calculated as the
      lettable area of the Leased Premises, expressed as a percentage of the
      total lettable area of the Property from time to time. At the date of
      signature the Lessee’s pro rata share is described in clause 1.13 of the
      Schedule.

	 	 	 
		2.9 	
      “the Lessor” includes its directors, agents, employees
      and shall include any manager or other person appointed by the Lessor in
      writing from time to time to inter alia administer the Building or
      any other agent appointed by the Lessor from time to time.

	 	 	 
		2.10 	
      “the Lessor’s Architect” means the architect appointed by
      the Lessor from time to time.

INITIAL HERE 

Page 9 of 36 

	 	2.11 	
      “Operating Costs” means the monthly operating cost
      payable by the Lessee to the Lessor as recorded in clause 1.9 of the
      schedule - in respect of maintaning and running the building and/or
      property for which the tenant is not otherwise liable in terms of this
      lease, including (but not limited to) :

Cleaning 

Security expenses 

Lift and escalator maintenance costs
Insurance premiums Rent collecting expenses and fees 

Cost of repairs and general
maintenanace, painting, salaries and wages of all employees engaged in the
operation and maintenance of the building and the property, 

Air conditioning maintenance and
running costs in respect of the common area 

Administrative costs 

Accounting, audit and secretarial fees

Pest control 

	 		
      The above services are provided by President Place Body
      Corporate.

	 	 	 
	 	2.12 	
      “Prime Rate of interest” shall mean the prime rate of
      interest percent per annum compounded monthly from time to time of the
      Lessor’s bankers and as determined by any of the said banker’s manager,
      whose authority and certification will not have to be proved. Furthermore
      a certificate issued by such manager shall constitute prima facie
      proof of such rate.

	 	 	 
	 	2.13 	
      “the Property” means the Property consisting of the Land
      upon which the Building is situated, and as described in clause 1.7 of the
      Schedule.

	 	 	 
	 	2.14 	
      “in writing” shall mean a written communication and shall
      include and be limited to a letter forwarded by registered post or
      hand-delivered or a facsimile transmission.

	 	 	 
	 	2.15 	
      Words importing any one gender shall include the other
      and words importing the singular shall include the plural and vice
      versa.

	 	 	 
	 	2.16 	
      The headings are used for reference only and are in no
      way to be deemed to modify, amplify or aid in the interpretation of this
      Agreement of Lease.

	 	 	 
	 	2.17 	
      All terms referred to in the Schedule shall have the
      meanings as are assigned to them therein.

INITIAL HERE 

Page 10 of 36 

	 	2.18 	
      Any clauses which are deleted in this Agreement of Lease
      and which remain legible thereafter shall be regarded as pro non
      scripto in the interpretation and implementation of this Agreement of
      Lease.

	 	 	 
	 	2.19 	
      In the interpretation of this Agreement of Lease, the
      contra proferentem rule of construction shall not apply (this
      Agreement of Lease being the product of negotiations between the Parties),
      nor shall this Agreement of Lease be construed in favour of or against any
      party by reason of the extent to which any Party or its professional
      advisors participated in the preparation of this Agreement of
  Lease.

	 	 	 
	 	2.20 	
      The terms and conditions of this Agreement are severable,
      therefore should any law or enactment render one or more of the provisions
      of this Agreement be unenforceable or unlawful then such provision(s)
      shall be severed from this Agreement and will be regarded as pro non
      scripto and the remaining provisions of this Agreement shall be of
      full force and effect.

	3. 	
      Lease Period

	 	 
		
      The lease shall commence on the Commencement Date as
      recorded in clause 1.8.2 of the Schedule and terminate on the Termination
      Date as recorded in clause 1.8.3 (“the Initial period”)

	 	 
	4. 	
      Option to Renew

	 	 
	4.1 	
      The Lessee has an option to renew this lease for a
      further period as recorded in clause 1.8.4 of the Schedule subject to the
      same terms and conditions of this lease, except that the Rental and
      Operating Costs may be reviewed by the Lessor so as to be equivalent to
      such rental as the Lessor can obtain for the Leased Premises at that time,
      from any bona fide Lessee notwithstanding which, subject to the
      rental, operating costs and escalation for the renewal period not being
      less than the rental and operating costs of the current lease and that
      there shall be no further option to renew.

	 	 
	4.2 	
      If the Lessee shall desire to exercise the option herein
      granted to it, it shall give written notice to the Lessor to that effect
      at least 6 (Six) months prior to the expiration of the Initial
      Period of this Agreement, failing which this option shall lapse and be of
      no further force or effect and this Agreement shall terminate on the
      Termination Date.

	 	 
	4.3 	
      The option is granted on condition that the Lessee does
      not commit any breach of any term of this Agreement during the Initial
      Period of the Agreement and the Lessee does not rectify such breach within
      7 (Seven) days after receipt of a written notice from the Lessor. Should
      the condition not be fulfilled in other words the Lessee commits a breach
      and does not rectify such breach as aforesaid, the Lessee’s option to
      renew this Agreement shall lapse and be of no further force or effect.
      This condition is for the benefit of the Lessor and may be waived by the
      Lessor in writing at any time.

INITIAL HERE 

Page 11 of 36 

	5. 	
      Leased Premises

	 	 
	5.1 	
      The Leased Premises are described in clause 1.5 of the
      Schedule.

	 	 
	5.2 	
      Upon completion of the Leased Premises, an architect’s
      certificate shall be issued by the Lessor’s Architect in respect of the
      rentable area of the Leased Premises and should such measurement vary by
      5% (Five Percent) or more from the area stipulated in clause 1.5 of the
      Schedule, then an adjustment shall be made to clause 1.9 of the Schedule
      and thereafter recorded in an Addendum to this Agreement.

	 	 
	5.3 	
      The Lessee confirms that the Leased Premises have been
      identified to it.

	 	 
	5.4 	
      The Leased Premises hereby let may only be used for the
      purposes as recorded in clause 1.4 of the Schedule and for no other
      purpose whatsoever without the prior written consent of the Lessor, which
      consent shall not be unreasonably withheld. The Lessee acknowledges and
      agrees that under no circumstances may the Leased Premises be used for
      residential purposes or the sleeping over of any person or
  persons.

	 	 
	5.5 	
      The Leased Premises will be deemed to be in good order
      and condition at the commencement of the Lease Period, unless and to the
      extent that the Lessee has notified the Lessor of any defects or damage
      therein in writing within 7 (Seven) days after the taking occupation of
      the Leased Premises.

	 	 
	5.6 	
      The Lessee must satisfy himself that the Leased Premises
      are suitable for the purpose for which they are let and notwithstanding
      clause 4.1 above, the Lessor is giving no warranties or undertakings in
      this regard. The Lessee is to obtain all authorisations and licenses
      necessary to lawfully use the Leased Premises for the purposes for which
      they are rented by him.

	 	 
	5.7 	
      Appurtenances, fixtures and fittings provided by the
      Lessor on the Leased Premises form part of the Leased Premises.

	 	 
	6. 	
      Rental and Other Charges

	 	 
	6.1 	
      The Monthly Rental payable by the Lessee comprises of the
      monthly rental referred to in clause 1.9 and 1.11 of the Schedule and the
      pro-rata contribution of increases for municipal rates, services and taxes
      referred to in clause 10 below. The Lessee will be liable for payment of
      all Value Added Tax (“VAT”) on the said amounts referred to in this
      clause.

	 	 
	6.2 	
      Should the Property rates and taxes increase during the
      currency of the lease the Lessee will be liable for the Lessee’s pro-rata
      share of such increase. The Lessee will be liable for such increases from
      the 01st July 2012.

	 	 
	6.3 	
      The Lessee shall be liable for the Lessee’s pro-rata
      share of any new tax or levy introduced by any local or other authority in
      respect of and/or relating to the Leased Premises, the Property or signage
      thereon.

INITIAL HERE 

Page 12 of 36 

	7. 	
      Payment

	 	 	 
	7.1 	
      The Lessee will pay, without deduction or set-off for any
      reason whatsoever via Electronic Fund Transfer into such account as may be
      nominated by the Lessor from time to time: -

	 	 	 
		7.1.1 	
      the Monthly Rental as recorded in clause 1.9 of the
      Schedule monthly in advance on or before the first day (which is not a
      Saturday, Sunday or public holiday) of each month;

	 	 	 
		7.1.2 	
      the Lease Fee (as recorded in clause 1.15 of the
      Schedule) on the date on which the Lessee signs this Agreement;

	 	 	 
		7.1.3 	
      any other amount owing within 7 days of
  demand.

	7.2 	
      The Lessor may appropriate any payment received from or
      for the benefit of the Lessee in reduction of any amount payable by the
      Lessee to the Lessor in terms of this Agreement.

	 	 
	7.3 	
      If the Lessee fails to make payment to the Lessor of any
      amount payable by him in terms of this Agreement, then the Lessor may
      (without prejudice to any other rights and remedies which it may have)
      recover interest from the Lessee on the amount outstanding at the Prime
      Rate of interest charged by the Lessor’s bankers from time to time plus 2%
      (two percent).

	 	 
	7.4 	
      Without prejudice to any rights and remedies of the
      Lessor and notwithstanding any legal rule to the contrary, payments made
      by post will only have been validly made when the payment is received by
      the Lessor and if made in terms of any instrument, other than cash, when
      such instrument has been honoured. Furthermore the Lessee bears the risk
      of such payment not being delivered by post timeously or at all, whether
      as a result of loss, theft, delay or any other reason.

	 	 
	7.5 	
      The Lessee acknowledges that the bank account detail of
      the Lessor is not likely to change. The Lessee will be informed of a
      change in bank account detail of the Lessor in writing and on a letterhead
      from the Lessor or its agent and such letter will be sent by registered
      mail. Prior to the Lessee acting on such letter, the Lessee shall verify
      the purported change in bank account detail by calling the Financial
      Director of Lessor or its agent and confirm such change whereafter the
      Lessee shall further confirm and/or verify any change in bank account
      detail in writing, on an official letterhead of the Lessee addressed to
      the Financial Director of the Lessor or its agent and referring to such
      telephone call and the content thereof. Prior to making payment into the
      new bank account, the Lessee shall confirm that the Financial Director of
      the Lessor has received such letter. Should payment of gross monthly rent
      and all other payments be made in any manner than as set out above, the
      risk and liability to ensure that payment of gross monthly rent and other
      payments due in terms of this Agreement shall remain vested with the
      Lessee. The Lessee hereby accepts the full risk and liability should any
      payment be lost, stolen or misappropriated and the Lessee shall
      immediately make a proper payment in replacement
thereof.

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Page 13 of 36 

	8. 	
      Maintenance and Alterations

	 	 	 
	8.1 	
      The Lessee is liable for -

	 	 	 
		8.1.1 	
      any damage caused to the Property by himself or for which
      the Lessee is vicariously liable;

	 	 	 
		8.1.2 	
      any damage to the interior of the Leased Premises as well
      as to the inside and outside of its doors, door mechanisms and windows (
      including but not limited to frames, burglar - proofing, fluorescent
      tubes, light bulbs, choking coils and power points) save and except for
      damage caused by the Lessor or for which the Lessor is vicariously
      liable;

	 	 	 
		8.1.3 	
      maintaining at its cost the interior of the Leased
      Premises in good order and condition.

	 	 	 
		
      In the event of a dispute as to whether the Lessee is
      liable in terms of clauses 8.1.1,

	 	 	 
		8.1.2 	
      or 8.1.3 hereof, the onus is on the Lessee to prove that
      he is not so liable.

	 	 	 
	8.2 	
      The Lessee will at his cost, keep the interior of the
      Leased Premises clean and hygienic at all times, free of all pests and
      vermin.

	 	 	 
	8.3 	
      On vacating the Leased Premises, the Lessee will at its
      cost, reinstate and restore the Leased Premises as recorded in Annexure
      E.

	 	 	 
	8.4 	
      The Lessee may not make any alterations, additions or
      improvements to the Leased Premises without the prior written consent of
      the Lessor whose consent shall not be unreasonably withheld.

	 	 	 
	8.5 	
      Without derogating from the other provisions of this
      Agreement, the Lessor is not liable to compensate the Lessee for any
      alterations, additions or improvements made to the Leased Premises and the
      Lessee waives any lien in respect of such alterations, additions or
      improvements.

	 	 	 
	8.6 	
      No contractors may be employed by the Lessee to do any
      work in the Leased Premises other than contractors approved by the Lessor
      in writing, which approval will not be unreasonably withheld.

	 	 	 
	8.7 	
      The Lessee will at all reasonable times permit the Lessor
      to have access to the Leased Premises for the purpose of carrying-out
      inspections or to carry out any repairs which the Lessor deems
      necessary.

	 	 	 
	9. 	
      Management and use of the Property

	 	 	 
	9.1 	
      The Lessee will abide by all rules made by the Lessor
      from time to time in respect of the management and use of the Property as
      advised by the Lessor to the Lessee in writing from time to time. Such
      rules may amongst other things, be in respect of security, safety, fire,
      access, parking, common areas, the keeping or attaching of anything (also
      name boards and signage) visible from outside the Leased Premises,
      delivery, refuse removal and other services. Such rules are to be
      reasonable and according to trade usage. A breach of such rules will be
  deemed a breach of this Agreement.

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Page 14 of 36 

	9.2 	
      The Lessor may reasonably control, restrict or deny
      access to the Property in the interest of security of safety and may
      secure the Property as it sees fit. The Lessee is responsible for the
      security of the Leased Premises at its own cost. Such security shall abide
      by the rules and regulations implemented by the Lessor from time to time
      and shall comply with the directives of the Lessor’s appointed security
      service provider (if any). The Lessor is responsible to secure all common
      areas up to the Leased Premises; thereafter it is the Lessee’s
      responsibility.

	 	 
	9.3 	
      The Lessee will use the Leased Premises for the purpose
      referred to in clause 1.4 of the Schedule and may not use it for any other
      purpose. The Lessee may not permit any unlawful use of the Leased Premises
      or any use which is contrary to the conditions of title, registered
      servitudes and the provisions of the town planning scheme applicable in
      respect of the Property.

	 	 
	9.4 	
      Save for the gross negligence and/or willful misconduct,
      the Lessor is not liable for any inconvenience or damage suffered by the
      Lessee on account of the interruption or temporary restriction of services
      to the Leased Premises, restriction or denial of access to the Property,
      the application of security or safety measures, maintenance and repair
      work to effect alterations, additions or removals. Access will not be
      unreasonably withheld.

	 	 
	9.5 	
      The Lessee will not permit any object to be placed in the
      Leased Premises which exceeds the floor design load of the Building or of
      the Leased Premises.

	 	 
	9.6 	
      The Lessee may not overload the electricity supply to the
      Leased Premises.

	 	 
	9.7 	
      The Lessor may at any time place any license or business
      notice on the exterior of the Leased Premises. “To Let” signs may, unless
      agreed otherwise in writing, only be placed on the exterior of the Leased
      Premises during the last 3 (Three) months of the Lease Period and/or upon
      cancellation of this Agreement in the event of breach.

	 	 
	9.8 	
      The Lessee shall ensure that the common areas and
      facilities are not used as eating- places or general resting places by its
      invitees and the Lessee shall procure that its invitees do not misuse the
      areas and facilities in any other way; this will not apply to the common
      area in front of the coffee shop.

	 	 
	9.9 	
      Common conveniences and facilities are used at the user’s
      own risk, and the Lessor shall not be liable for injury to any person or
      for any damage or loss, however caused.

	 	 
	9.10 	
      The Lessee will ensure that its employees are advised and
      instructed to utilize the dedicated smoking area. As indicated on Annexure
      C(8)

	 	 
	10. 	
      Services and other Charges payable by
  Lessee

	 	 
	10.1 	
      In addition to the monthly rental, the Lessee shall be
      liable for and shall pay the Lessor on a monthly basis to the Lessor or
      the local authority or body concerned, as the Lessor may from time to time
      require:

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Page 15 of 36 

	 	10.1.1 	
      the cost of all electricity, including but not limited to
      the electrical maximum demand charges, basic electrical charges,
      connection fees and all other electrical consumption by the Lessee on or
      about the Leased Premises;

	 	 	 
	 	10.1.2 	
      Gas and water consumed by the Lessee on or about the
      Leased Premises;

	 	 	 
	 	10.1.3 	
      the Lessee’s pro-rata share of industrial effluent
      charges and sewerage charges calculated at the applicable rate specified
      by the local authority,

	 	 	 
	 	10.1.4 	
      the Lessee’s pro-rata share of refuse removal charges for
      the Leased Premises or its direct costs of actual refuse removal generated
      by the Lessee whichever is applicable;

	 	 	 
	 	10.1.5 	
      the Lessee’s pro-rata share of Common Amenity
  Costs

	 	 	 
	 	10.1.6 	
      the Lessee’s pro-rata share all costs incurred by the
      Lessor for the reading of meters situated at the Property relating to
      water, electricity and gas consumption on the Property and/or the Leased
      Premises.

	10.2 	
      Should a meter metering the electricity and water
      consumption be shared between lessees, the charges will be shared on a pro
      rata basis calculated as the percentage which the area of the Leased
      Premises bears to the total area metered.

	 	 
	10.3 	
      Should at any time such meters fail, then the Lessee will
      be liable for its average electricity and water charges, calculated over
      the preceding 6 (Six) months. A certificate issued by the Lessor and/or
      its agent shall constitute prima facie proof of such calculation. The
      Lessee shall be notified immediately upon the discovery of such a metering
      defect.

	 	 
	10.4 	
      Should the Lessee fail to pay the charges for electricity
      and/or water within 7 (Seven) days of written demand, then, without
      prejudice to any other rights it may have, the Lessor shall be entitled to
      terminate the supply of utility services to the Lessee without further
      notice, and shall not be liable for any damages, including consequential
      damages, that may be sustained by the Lessee.

	 	 
	10.5 	
      If water, gas or electricity is not metered separately
      for the Leased Premises, then the Lessee’s liability for charges for
      electricity, water and gas shall be the Lessee’s pro-rata share (as
      recorded in clause 1.13 of the Schedule) thereof calculated at the same
      rate as the Lessee would pay to that authority or supplier, had such
      services been supplied directly to the Lessee.

	 	 
	10.6 	
      No heating or air-conditioning appliances (other than as
      supplied by the Lessor, if any) may be used in the Leased Premises, unless
      the Lessor consents thereto in writing.

	 	 
	10.7 	
      Any additional services required by the Lessee in respect
      of the Leased Premises must be expressly agreed to in writing.

	 	 
	10.8 	
      Any electrical charges, refuse removal, water or any
      other such charges shall be paid for by the Lessee from the fixturing
      occupation date, whether or not the Lessee trades from the Leased
      Premises.

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Page 16 of 36 

	10.9 	
      The Lessee shall furthermore be liable for the costs of
      servicing and maintaining any dedicated air-conditioning unit,
      alternatively in case of a shared unit, the costs divided by the area of
      the Leased Premises expressed as a percentage of the total area which the
      air conditioning unit serve, excluding common areas.

	 	 
	10.10 	
      The Lessee shall furthermore be liable for the costs of
      purchase, installation, maintenance and repair of any and all hand held
      firefighting equipment and hose reels in the Leased Premises.

	 	 
	10.11 	
      The Lessee shall be responsible for the replacement cost
      of any bins or containers used by or in connection with the Leased
      Premises which may be stolen, lost or unlawfully removed.

	 	 
	10.12 	
      Should any future legislation introduce a penalty or an
      extra charge or levy on electricity and/or water consumption based on
      usage of electricity and/or water or as directed in such legislation, the
      Lessor shall be entitled to recover such penalty or extra charge or levy
      from the Lessee if such Lessee’s usage of electricity and/or water results
      in a penalty or extra charge or levy. A certificate issued by the Lessor
      shall constitute prima facie proof of the Lessee’s liability and
      the amount stated therein.

	 	 
	11. 	
      Defects

	 	 
	11.1 	
      Should the Lessee, on taking occupation of the new Leased
      Premises on the 6th floor North Wing, find any of the keys,
      locks, doors, door mechanisms, windows, washbasins, taps, toilets,
      sanitary ware, drains or downpipes, electrical, other equipment or any
      other finishes relating to the premises not in good order, the Lessee
      shall notify the Lessor in writing of all defects within 7 (Seven) days of
      taking occupation and the Lessor shall take all reasonable steps to repair
      such defects as soon as possible. Should the Lessee not give such notice
      within the specified time, it shall be regarded as an acknowledgement that
      the Leased Premises and items were received in good order and
    repair.

	 	 
	11.2 	
      The provisions of this clause shall not be applicable in
      the event of a renewal of any Agreement of Lease.

	 	 
	12. 	
      Cession, subletting and sale of business

	 	 
	12.1 	
      The Lessee may not cede any of his rights or delegate any
      of his obligations in terms of this Agreement or sublet or give up
      occupation of the Leased Premises (or part thereof to any person other
      than its subsidiaries or affiliate entities without the prior written
      consent of the Lessor, which consent shall not unreasonably be withheld.
      The onus is on the Lessee to prove
unreasonableness.

	12.2 	
      If the Lessee is a private company or close corporation
      and it intends to change the holding of its members so that the
      members who held the controlling interest when this Agreement was entered
  into, will no longer do so, then -

	 	 	 
		12.2.1 	
      the Lessee will inform the Lessor in writing of such
      intended change; and

	 	 	 
		12.2.2 	
      obtain the Lessor’s prior written consent to such change,
      which consent shall not unreasonably be withheld by the Lessor.
      The onus is on the Lessee to prove
unreasonableness.

INITIAL HERE 

Page 17 of 36 

		
      provided that should the Lessee fail to inform
      the Lessor of an intended change as contemplated in clause 12.2.1 or
      should the Lessor withhold its consent to any such change and the Lessee
      nevertheless proceeds to change the holding of its members, the Lessor may
      terminate this Agreement by 1 (One) calendar month’s written notice given
      to the Lessee within 30 (Thirty) days after the Lessor becomes aware of
      the change in members’ holding.

	 	 	 	 
	12.3 	
      The Lessee shall not be entitled to sell its business
      conducted from the Leased Premises without the prior written
      consent of the Lessor, which consent shall be granted in the sole and
      absolute discretion of the Lessor and on conditions determined by the
  Lessor at the time;

	 	 	 	 
		12.3.1 	
      Should the Lessee anticipate the possible sale of its
      business or any portion thereof, and prior to entering into or
      concluding any Agreement with a potential purchaser, the Lessee shall
      notify the Lessor in writing, which notice shall contain the following
  minimum information:-

	 	 	 	 
			12.3.1.1 	
      the name and identity number of the potential
      purchaser;

	 	 	 	 
			12.3.1.2 	
      the name and registration number of the proposed
  purchaser in the event of a juristic person;

	 	 	 	 
			12.3.1.3 	
      the proposed sureties and their identity
  numbers;

	 	 	 	 
			12.3.1.4 	
      the experience, curriculum vitae and résumé of the
      potential purchaser and of any individuals that will conduct the
  business;

	 	 	 	 
			12.3.1.5 	
      the business plan;

	 	 	 	 
			12.3.1.6 	
      the amount of Lessee installation allowances that was
  granted to the Lessee by the Lessor;

	 	 	 	 
			12.3.1.7 	
      a copy of the proposed Agreement of Sale;

	 	 	 	 
			12.3.1.8 	
      confirmation that no amounts are payable to the Lessor by
      the Lessee at the time of making such request. Should monies be
      outstanding and the Lessee would request the Lessor to accept payment from
      the purchaser of the business conducted from the Leased Premises, the
      Lessor shall be under no obligation to accept such proposal and shall be
      at liberty to enforce its rights in terms of this Agreement at any time
      alternatively accept such proposal upon terms and conditions acceptable to
  the Lessor.

	 	 	 	 
		12.3.2	
      The surety(ies) to this Agreement shall remain liable,
      and where necessary shall be re-signed to record their liability
      for the duration of the unexpired portion of the Agreement, despite and
      notwithstanding an approval of the sale of the
business;

	 	 	 	 
		12.3.3 	
      In the event of the Lessee having received an
      installation allowance from the Lessor, the installation allowance
      will be repaid to the Lessor, prior to
the purchaser of the business
taking occupation of the Leased Premises alternatively at
signing an assignment of this Agreement or upon the signing a new agreement of lease in respect of the Leased Premises by
such purchaser, on the following formula:

INITIAL HERE 

Page 18 of 36 

Amount of Allowance x
  Unexpired Period of The Initial
Period 

                                                               
The Initial Period 

= Amount to be repaid by the
Lessee to the Lessor 

	 	12.3.4 	
      Such repayment shall be payable upon demand from the
      Lessor;

	 	 	 
	 	12.3.5 	
      The Lessee shall notify the “prospective purchaser” of
      the content of this Agreement and specifically but not limited to
      the usage clause and shall furthermore make no representation that such
      usage clause or any other term of this Agreement may alter or be amended
      or that such amendment shall be favourably considered by the
  Lessor.

	 	 	 
	 	12.3.6 	
      For the avoidance of doubt, the parties record that if
      the business conducted from the Leased Premises is sold by the
      Lessee, then and unless the purchaser of the new business takes assignment
      of this lease, all rentals remaining under this lease until Termination
      Date will become due for payment by the Lessee to the Lessor at their then
      present value using the Prime Rate of interest of Nedbank Ltd. A
      certificate issued by the Lessor shall constitute
      prima facie proof of the present
      value of the rentals remaining under this lease until Termination
      Date.

	13. 	
      Breach

	 	 	 
	13.1 	
      If:

	 	 	 
		13.1.1 	
      the Lessee fail to pay any amount due by the Lessee in
      terms of this Agreement on the due date thereof; and/or

	 	 	 
		13.1.2 	
      the Lessee breaches any term of this Agreement and does
      not remedy such breach within 7 (Seven) days after having been required in
      writing by the Lessor to do so.

	 	 	 
		13.1.3 	
      the Lessee being a company or close corporation, be
      placed under provisional or final judicial management or provisional or
      final winding-up, whether voluntary or compulsory; and/or

	 	 	 
		13.1.4 	
      the Lessee be a franchise and its franchise agreement is
      cancelled or terminated or is interdicted on a temporary or permanent
      basis from trading as a franchisee in any respect; and/or

	 	 	 
		13.1.5 	
      the Lessee holds any license to conduct its business or
      part thereof and such license is revoked or not renewed or
  extended;

 then the Lessor may (without prejudice to its other rights and
remedies) forthwith cancel this Agreement by written notice to that effect given
to the Lessee; or 

INITIAL HERE 

Page 19 of 36 

		
      at the election of the Lessor, amend this Agreement by
      written notice given to the Lessee, to the effect that this Agreement may
      thereafter be terminated by the Lessor before the expiry of the Lease
      Period, by giving 1 (One) calendar month’s written notice.

	 	 	 
	13.2 	
      If the Lessee breaches any term of this Agreement and the
      Lessor has already in terms of clause 13.1 hereof in writing required the
      Lessee three or more times to remedy a breach (whether the same breach or
      a different breach), then the Lessor may (without prejudice to its other
      rights and remedies) immediately and without first requiring the Lessee to
      remedy such breach -

	 	 	 
		13.2.1 	
      cancel this Agreement by written notice to that effect
      given to the Lessee; or

	 	 	 
		13.2.2 	
      at the election of the Lessor, by written notice to that
      effect given to the Lessee change the Lease Period so that this Agreement
      may thereafter be terminated by the Lessor by 1 (One) calendar month’s
      written notice.

	 	 	 
	13.3 	
      If the Lessee disputes any termination of this Agreement
      and remains in possession of the Leased Premises, the Lessee will continue
      paying the Monthly Rental and other monies payable in terms of this
      Agreement and will continue to fulfill its other obligations in terms of
      this Agreement pending the determination of such dispute. The Lessor will
      be entitled to accept such payments without prejudice to its rights or
      remedies. If such dispute is resolved in favour of the Lessor, then any
      such payments will be deemed to have been paid on account of damages
      suffered by the Lessor as a result of the unlawful holding over by the
      Lessee of the Leased Premises.

	14. 	
      Re-Building

	14.1 	
      Notwithstanding anything contained to the contrary in
      this Agreement, if the Lessor intends to renovate and/or demolish and/or
      re-develop the Building in which the Leased Premises are situated, the
      Lessor may cancel this lease by giving the Lessee at least 3 (Three)
      calendar months’ written notice of cancellation.

	 	 
	14.2 	
      The Lessor may extend or change the Building at any time
      without giving the Lessee notice to such effect. The Lessee may under no
      circumstances object to the proposed extension or any rezoning application
      or other application by the Lessor to extend or change the
  building.

	 	 
	14.3 	
      The Lessor will ensure access to the Leased Premises will
      always be available and any disruption will have no material impact to the
      Lessee’s business.

	 	 
	15. 	
      Insurance, damage and destruction

	 	 
	15.1 	
      The Lessee may not do or permit anything to be done which
      invalidates the Lessor’s insurance policies in respect of the Property or
      which causes insurance claims to be unenforceable or which increases the
      premiums of such insurance. The policies are to be made available by the
      Lessor for perusal on written request by the Lessee.

	 	 
	15.2 	
      If the Leased Premises or the Building is damaged or
      destroyed to such an extent that it becomes substantially untenantable,
      the Lessor may, at its option, and in addition to any other rights which
      it may have -

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Page 20 of 36 

	 	15.2.1 	
      by written notice terminate this Agreement from date of
      such damage or destruction, or

	 	 	 
	 	15.2.2 	
      rebuild or restore the Leased Premises or the Building,
      provided that during such rebuilding or restoration the Monthly Rental
      will be abated in accordance with the extent of loss of beneficial
      occupation suffered by the Lessee, as certified the Lessor’s architect
      or

	 	 	 
	 	15.2.3 	
      Provided that in the event that such rebuilding or
      restoration is likely to take more than 3(three) months to complete, the
      Lessee may elect to terminate this Agreement.

	 	 	 
	 	15.2.4 	
      Should the Lessee do so, the Lessee indemnifies the
      Lessor against any loss incurred as a result of this and/or pay for any
      increase in the insurance premium required to accommodate such
      business.

	16. 	
      Lessee’s General Obligations

	 	 	 
	16.1 	
      The Lessee:

	 	 	 
		16.1.1 	
      shall comply with all laws, by-laws and regulations
      relating to lessees or occupiers of business premises for the conduct of
      any business carried on in the premises, including but not limited to
      obtaining an occupation certificate from the local authority at its
      cost;

	 	 	 
		16.1.2 	
      shall not do or permit or cause anything to be done in or
      about the Leased Premises anything which, in the reasonable opinion of the
      Lessor, constitutes a nuisance or disturbance or may cause inconvenience
      to, or in any way disturb the peace of the Lessor or other lessees in the
      Building or on the Property, or occupiers of neighbouring premises or
      which may detract from the general neat appearance of the Property or the
      Leased Premises. Nothing in this Agreement shall entitle any lessee or
      person or other party to demand from the Lessor to take action in terms of
      this clause, nor shall any lessee or other party derive any rights from
      the provision of this clause;

	 	 	 
		16.1.3 	
      will, if the Lessee is a restaurant or fast food outlet
      at its cost, install and maintain an extraction system in the food
      preparation area with filters, and shall maintain and regularly service,
      at its cost, these filters, to reduce odours and smoke to a minimum,
      together with a grease trap or similar equipment leading to the drainage
      in the Leased Premises, and the Lessor will have the right to order the
      Lessee, at the Lessee's cost, to change any system to meet the requirement
      of the Lessor or of any authority, including but not limited to the
      Department of Agriculture, Conservation and Environment;

	 	 	 
		16.1.4 	
      undertakes not to do or permit any act or deed, which may
      or shall obstruct the sewerage pipes, water pipes, storm water drainage
      system and/or drains. Should such an incident occur, the Lessor will be
      entitled to recover the cost of unblocking same and/or any damages
      resulting from such blockage from the Lessee and should the Lessor's
      contractor find that more than one lessee has attributed to the blockage,
      the costs and damages will be recovered from the responsible parties on an
      equal basis;

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Page 21 of 36 

	 	16.1.5 	
      shall ensure that the Leased Premises are adequately
      stocked and properly staffed and shall not obscure windows in any
      manner;

	 	 	 
	 	16.1.6 	
      shall pay for the replacement and repair of any lamps,
      starters, ballast and any lamps used in the Leased Premises and shall not
      interfere with the electrical installation or any other installation or
      equipment belonging to the Lessor and shall not overload the electrical
      system or any other service;

	 	 	 
	 	16.1.7 	
      shall not attach to the walls, ceilings and/or place on
      any part of the Leased Premises fittings or equipment which may be too
      heavy load therefore;

	 	 	 
	 	16.1.8 	
      shall be responsible for maintenance and repair of
      electrical installations in the Leased Premises, including but not limited
      to the distribution board and further more furnish the Lessor with an
      electrical compliance certificate if requested in writing by the Lessor
      from time to time, and should the Lessee fail to do so the Lessor shall be
      entitled but not obliged to instruct its agents to obtain such certificate
      and the Lessee shall be liable for all costs relating thereto including
      but not limited to costs in respect of work to be performed.

	 	 	 
	 	16.1.9 	
      shall provide and use bins or containers for refuse
      removal at its costs as may be necessary or specified by the local
      authority or the Lessor and keep the bins and containers in a neat and
      tidy condition and replace them from time to time;

	 	 	 
	 	16.1.10 	
      shall not hold or permit to be held, any auction in or
      upon the Leased Premises without the Lessor's prior written
  consent;

	 	 	 
	 	16.1.11 	
      shall expedite the loading and unloading of vehicles to
      ensure that vehicles do not wait in the unloading area for unreasonably
      long periods;

	 	 	 
	 	16.1.12 	
      shall not be entitled to encumber, pledge,
      hypothecate or bond the content of the Leased Premises without the
      Lessor’s prior written consent. Failure by the Lessee to abide herewith
      shall constitute a material breach of the terms and conditions of this
      Agreement;

	 	 	 
	 	16.1.13 	
      shall, and it is a material term of this
      Agreement, keep the Leased Premises open continuously during business
      hours and carry on its business during the whole term of this Agreement or
      any extension or renewal thereof, subject to its right to close the Leased
      Premises on special occasions or when general conditions render it
      reasonably appropriate to do and then with the written consent of the
      Lessor;

	 	 	 
	 	16.1.14 	
      shall ensure that all activities on the Leased Premises
      comply in all respects with the Occupational Health and Safety Act No. 85
      of 1993, as amended (or its successor) and the regulations (as amended)
      found thereunder. The Lessee confirms that with effect from the fixturing
      occupation date it has acquired full control in respect of the use of the
      Leased Premises for purpose of the Occupational Health and Safety Act No.
      85 of 1993, as amended, and the Lessee hereby indemnifies the Lessor or
      any duly appointed agent against any claims arising from the Lessee’s
      non-compliance with the provisions of this Act in respect of the Leased
      Premises;

	 	 	 
	 	16.1.15 	
      shall not contravene or allow the contravention of the
      Tobacco Products Control Act 83 of 1993 (including regulations as amended
      thereunder) by members of its staff or any person on
the Leased Premises. The Lessee further indemnifies and holds the Lessor
harmless against any penalty imposed by any local, provincial, national or other
authority as a result of the Lessee's failure to comply with the provisions of
such Act and/or the regulations. 

INITIAL HERE 

Page 22 of 36 

	16.2 	
      The Lessee indemnifies and holds the Lessor harmless
      against any protest, picketing, strike, unlawful occupancy, nuisance and
      disturbance carried out by any employees and/or third party/parties on the
      Leased Premises and/or in the building directed to or relating to the
      Lessee.

	 	 
	16.3 	
      The Lessee undertakes to immediately inform the Lessor in
      writing of any industrial action and/or process where an order is sought
      or applied for in terms of which industrial action would be allowed in any
      location other than the premises for example on the property or in the
      building. The Lessee shall not willfully agree to and shall oppose any
      application in terms of which any industrial action would be allowed in
      any location other than the Leased Premises for example on the Property or
      in the Building.

	 	 
	16.4 	
      The Lessee undertakes to use its best endeavours to limit
      the noise levels and nuisance caused by any industrial action by its
      employees or directed at the Lessee.

	17. 	
      General

	17.1 	
      Any letting or reservation of parking space on the
      Property, if available, for the benefit of the Lessee will be expressly
      agreed upon in writing separately from this Agreement.

	 	 
	17.2 	
      The fitting-out of the Leased Premises will be expressly
      agreed upon in writing separately from this Agreement.

	 	 
	17.3 	
      The Lessor may assign its rights and obligations in terms
      of this Agreement to any other person by written notice to that effect
      given to the Lessee. The Lessee hereby consents to such
  assignment.

	 	 
	17.4 	
      If the Lessee comprises more than one person, such
      persons are jointly and severally liable and entitled in terms of this
      Agreement.

	 	 
	17.5 	
      The Lessee is to ensure that its visitors and its
      employees do not act in contravention of this Agreement.

	 	 
	17.6 	
      If the Lessor provides services to the Leased Premises or
      makes concessions which it is not obliged to provide or make, then the
      Lessee does not acquire rights in respect thereof and the Lessor is not
      obliged to continue providing such services or making such
    concessions.

	 	 
	17.7 	
      This Agreement supersedes all prior agreements in respect
      of the matters referred to herein and is the whole agreement in respect
      thereof. No amendment, renewal or consensual cancellation of this
      Agreement is binding on the parties unless expressly contained in a
      written document signed by the Lessor. The Lessor will not be bound by any
      representation or warranty not expressly recorded in this
  Agreement.

	 	 
	17.8 	
      Where necessary, in the Agreement, a reference to the
      masculine gender includes the feminine and neuter.

INITIAL HERE 

Page 23 of 36 

	18. 	
      Change of Building Name

	 	 
		
      The Lessor shall have the right to change the name of the
      Building. The Lessor shall not be liable for any losses or damages
      suffered by the Lessee from or incidental to such change of
name.

	 	 
	19. 	
      Cash Deposit

	19.1 	
      The Deposit will be security for the Lessee’s obligations
      in terms of this Agreement (including any cancellation
  thereof).

	 	 
	19.2	
      The Deposit, without interest but after deduction of all
      amounts owing by the Lessee to the Lessor, will be repaid by the
      Lessor to the Lessee within 3 (Three) months after this Agreement
      terminates for any reason whatsoever. If the Lessee provides a Bank
      Guarantee, such Bank Guarantee shall expire 3 (Three) months after the
      Termination Date of this Agreement after which such Bank Guarantee shall
  be revoked.

	 	 
	19.3 	
      Should the Lessee not furnish such acceptable Bank
      Guarantee at the date of signature of this Agreement, the Deposit
      shall thereafter, notwithstanding what is recorded elsewhere, be payable
      in cash. This provision is for the benefit of the Lessor and may be waived
by it in writing at any time.

	20. 	
      Suretyships

	 	 
		
      The person or persons named in clause
      1.17 of the Schedule shall furnish personal suretyships
      together with the signing of this Agreement of Lease. Should such person
      or persons fail to sign such suretyships, then it shall be deemed that the
      Lessee shall be in breach of the terms and conditions of this Agreement of
      Lease, and the Lessor shall be entitled to exercise all its rights
      hereunder, consequent upon a breach by the Lessee of its obligations,
      provided that the Lessor may, in its discretion, waive its right to the
      suretyship of any one or more of the sureties named in the Schedule
      without affecting its right in respect of the remaining sureties or their
      several obligations as such.

	21. 	
      Advertising Signs

	21.1 	
      The Lessee shall not affix to or place, hang or erect on
      any part of the Leased Premises or the Property, any sign, nameplate,
      notice-board, advertising sign, flagpole, antenna or sun-blind, not do or
      cause to be done any painting, writing or printing on any part of the
      Leased Premises or of the Property without the Lessor's prior written
      consent. If the Lessor consents, the work shall be done strictly in
      accordance with the Lessor’s specifications. If the Lessee commits a
      breach of this provision, the Lessor shall be entitled, without notice or
      order of court, to remove the offending matter at the Lessee’s
    expense;

	 	 
	21.2 	
      The Lessee shall be required to provide a sign in
      compliance with the provisions of the Lessor’s sign and shopfront
      specifications. The Lessee shall be obliged to obtain the prior written
      approval of the Lessor for any signage it wishes to erect in or on the
      Leased Premises and, provided such signage is in keeping with the general
      standard and finish of the building, such consent shall not be
      unreasonably withheld;

	 	 
	21.3 	
      If the signage is approved by the Lessor in terms of
      clause 21.2, the Lessee’s right to place a sign on a portion of the Leased
      Premises and/or Building and/or Property, shall be by virtue of a license
      and such license may be revoked at any time;

INITIAL HERE 

Page 24 of 36 

	21.4 	
      During this Agreement or any renewal therefore, the
      Lessee shall maintain the good appearance of any advertising sign and keep
      it in proper working order and shall, at the expiration or earlier
      termination of this Agreement, remove any sign so placed and reinstate the
      relevant part of the Leased Premises and/or Building and/or Property to
      the same good order and conditions as it was at the commencement date or
      as it was when the Leased Premises were first occupied by the
    Lessee.

	22. 	
      FICA requirements

	 	 
		
      The Lessee acknowledges the Lessor’s duty to comply with
      the Financial Intelligence Centre Act, 38 of 2001, as amended, and agrees
      to provide the Lessor with the relevant documents as required by
    law.

	 	 
	23. 	
      Consent to credit
verification

	23.1 	
      The Lessee irrevocably consent to the Lessor and/or its
      agents requesting any information available on any credit bureau regarding
      the Lessee stipulated herein from time to time.

	 	 
	23.2 	
      This consent includes (but is not limited to) that the
      Lessor and/or its agents, as the case may be:

	 	23.2.1 	
      perform a credit search on the Lessee’s credit profile
      with more than one registered credit bureau at any time during the
      currency of this Agreement.

	 	 	 
	 	23.2.2 	
      should the Lessee fail to meet its commitments in terms
      of this Agreement, the Lessor and/or its agents may record the Lessee’s
      non-performance to any credit bureau.

	 	 	 
	 	23.2.3 	
      to request a report where the Lessor and/or its agents
      are monitoring the Lessee’s payment behaviour by researching the Lessee’s
      profile.

	 	 	 
	 	23.2.4 	
      use any new information and data obtained from any
      registered credit bureau in respect of future applications to lease (if
      applicable).

	 	 	 
	 	23.2.5 	
      may record the details in respect of the Lessee’s account
      with any registered credit bureau.

	 	 	 
	 	23.2.6 	
      may record and transmit details of the Lessee’s
      performance in terms of this Agreement and how the account is conducted by
      the Lessee in meeting its obligations in terms of this
  Agreement.

	23.3 	
      The Lessor will give the Lessee 20 (Twenty) business
      days’ written notice prior to forwarding of the details as set out above
      to any registered credit bureau.

	24. 	
      Exercise of rights

	24.1 	
      The Lessee chooses the their Head Office address as
      stated in clause 1.2 of the schedule as his address for the service of any
      process of court and for all purposes (including the giving of notices) in
      terms of this Agreement (including any cancellation thereof); provided
      that a process or notice actually served on or received by the
    Lessee will be adequately served or given notwithstanding the
      fact that it was not served on or received by the Lessee at the Leased
  Premises.

INITIAL HERE 

Page 25 of 36 

	24.2 	
      Each party hereby consents to the jurisdiction of the
      Magistrates’ Court should either party institute legal proceedings out of
      that court, even if the amount claimed exceeds the jurisdiction of the
      Magistrates’ Court.

	 	 
	24.3 	
      The costs which either party may be obliged to pay to the
      other party pursuant to the other party enforcing its rights in terms of
      this Agreement (including any cancellation thereof) include legal costs
      (as between attorney-and-own-client), collection commission and tracing
      costs.

INITIAL HERE 

Page 26 of 36 

	25. 	Signature 
	 	 
		
      Any signature for the Lessee hereby warrants that he is
      authorised to sign this Agreement on behalf of the Lessee and that the
      Lessee is empowered to enter into this Agreement - 

	 	 
	 	 
	25.1 	 SIGNATURE OF / FOR LESSEE 
	 	 
	 	 
	  	 SIGNED at ROSEBANK on
      7th day of MAY 2013____ 
	 	 
	 	 
	  	  
	  	 /s/ Herman
      Kotzé                                    
       
	 	 
	  	 Duly authorized (THE LESSEE)

	 	 
	 	 
	 	 
	 	 
	25.2 	 DETAILS OF SIGNATORY OF / FOR LESSEE ( S
      ) 

	 	FULL NAME 	HERMAN KOTZÉ 
	 	 	 
	 	CAPACITY 	DIRECTOR 
	 	 	 
	 	IDENTITY NUMBER 	 
    

 

	 	 	 
	AS WITNESS 	 	PRINT NAME (WITNESS) 

INITIAL HERE 

Page 27 of 36 

	25.3 	
      SIGNATURE FOR LESSOR

	 	 
		
      SIGNED at ROSEBANK on 7TH
      day of MAY 2013____

/s/ Lance Manning Seymour
Chalwin-Milton                               
 

Duly authorized (THE LESSOR)

 

	25.4 	
      DETAILS OF SIGNATORY OF / FOR LESSOR ( S
  )

	FULL NAME 	LANCE MANNING SEYMOUR CHALWIN- MILTON 
	 	 
	CAPACITY 	DIRECTOR
    _____________________________________
	 	 
	IDENTITY NUMBER 	 

	 	 	 
	AS WITNESS 	 	PRINT NAME (WITNESS) 

INITIAL HERE 

Page 28 of 36 

ANNEXURE A 

LESSEE COMPANY RESOLUTION 

CERTIFIED COPY OF A RESOLUTION OF 
NET 1
APPLIED TECHNOLOGIES SOUTH AFRICA LIMITED 

	PASSED
      AT:         
      __________________________________________
	 
	ON:                          
      __________________________________________

 

IT WAS RESOLVED THAT: 

NET 1 APPLIED TECHNOLOGIES SOUTH AFRICA LIMITED 

	1. 	
      enter into an Agreement of Lease with BUZZ TRADING 199
      (PTY) LTD to which this Resolution is attached”;

	 	 
	2. 	
      HERMAN KOTZÉ in his capacity as
      __________________________________is hereby authorised to sign such
      Agreement on behalf of NET 1 APPLIED TECHNOLOGIES SOUTH AFRICA
      LIMITED

THE AFOREGOING IS CERTIFIED TO BE A TRUE COPY 

	_________________________	 	             
      _________________________ 
	(Name in print) 	 	           
         (Full Signature) 
	 	 	 
	 	 	             
      _________________________
	  	 	           
         (Designation) 
	 	 	 
	 	 	 
	(Designation AND Signature) 	 	DATE 
	 	 	 
	 	 	 
	(Designation AND Signature) 	 	DATE 
	 	 	 
	 	 	 
	(Designation AND Signature) 	 	DATE 

INITIAL HERE 

Page 29 of 36 

ANNEXURE B 

BANK GUARANTEE FORMAT 

LEASE GUARANTEE NUMBER:  
____________________

DATE:    
_____________________ 

LEASE GUARANTEE BETWEEN  
__________________   AND ________________________

We, _________________________ Bank of South Africa
Limited, Registration Number _____________________ (“the
Bank”), advise that we are holding the sum of R ____________
(_______________ Rand) (“the Guaranteed Amount”) on behalf of
__________________ (hereinafter referred to as “the Lessee”) at
the disposal of  __________________ (hereinafter referred
to as “the Lessor”) for the Agreement of Lease of Shop ____ situated at
________________(hereinafter referred to as “the Lease Agreement”). The
Bank will pay on receipt of a first written demand from the
Lessor, stating that the amount is due and payable and that the
Lessee is in breach of the Lessee’s obligations under the Lease Agreement,
provided that the claimed amount does not exceed the Guaranteed
Amount. 

The Bank’s liability under this Guarantee is principle
in nature and is not subject to any agreement. The Bank’s
liability shall not be reduced or in any way be affected by any alteration
of any agreements entered into, or to be entered into, with the
Lessor. 

The Bank will pay upon demand and will not determine
the validity of the demand or the correctness of the amount
demanded, or become party to any claim or dispute of any nature,
which any party may allege. 

This Guarantee is neither negotiable nor transferable,
is restricted to the payment of a sum of money only and is
limited to the Guaranteed Amount. 

This Guarantee will expire on ___________________being
3 (Three) calendar months after the termination of the Lease
Agreement or upon payment of the Guaranteed Amount in full by the
Bank, whichever event occurs first, and no further claims will then be
considered. 

The Bank may at any time withdraw from this Guarantee
by giving 3 (three) months written notice and make payment of
the Guaranteed Amount by way of Electronic Fund Transfer into the
account directed in writing by the Lessor from time to time.

Payment will only be made at the _______________branch
of the Bank and against return of this original Guarantee by
the Lessor or the Lessor’s duly authorised agent. 

The original Guarantee must be returned to the Bank,
either against payment of the Guaranteed Amount, or expiry
thereof.

This Guarantee is issued in favour of __________[the
Lessor]. This Guarantee is neither negotiable nor transferable,
save in the event that the property which is the subject of this
Guarantee it sold, in which event the Lessor may, in terms of the Lease
Agreement referred to herein, request the Bank in writing to
transfer this Guarantee to the Lessor’s successor/s in title. The Bank
undertakes to do all things necessary to procure such a transfer to such a third
party. 

INITIAL HERE 

Page 30 of 36 

Notwithstanding anything contained in this Guarantee,
the Lessor shall be entitled to call on payment in terms of
this Guarantee in the event of the Lessee remaining in occupation of
the premises beyond the expiry date of the Lease Agreement
referred to herein. 

Any change to the terms and/or conditions of this
Guarantee, must first be agreed to in writing by the Lessor,
the Lessee and the Bank. 

FOR: ______________ BANK OF SOUTH AFRICA LIMITED at
_______________________

on _______________

	 	 	 
	(Authorised
      Signatory)  	 	(Authorised Signatory)
    

INITIAL HERE 

Page 31 of 36 

ANNEXURE C 

PLAN 

INITIAL HERE 

Page 32 of 36 

ANNEXURE D 

DEED OF SURETYSHIP 

I/We the undersigned, 

__________________________________identity number:
_____________________________

of
___________________________________________________________________(address)

do hereby bind myself/ourselves as Surety(ies) and
Co-Principal Debtors(s) jointly and severally to: 

BUZZ TRADING 199 (PTY) LTD

(Registration Number ) 
(hereinafter called “the
Lessor”) 

for the due and proper fulfilment of all the
obligations of, and for the punctual payment of all sums which
are or may become due by: 

NET 1 APPLIED TECHNOLOGIES SOUTH AFRICA
LIMITED
 (Registration Number ) 

(hereinafter called “the Lessee”) 

or its successors in title or assigns, to the Lessor,
from whatsoever nature and howsoever arising, including but not
limited to the Agreement of Lease to which this Deed is annexed, its
cancellation or termination, in respect of premises in the
Property known as PRESIDENT PLACE.
We acknowledge ourselves to be fully acquired with all the
terms and conditions of the said Lease. 

I/We agree and declare that: 

	1. 	
      No act of indulgence, relaxation or grace granted
      by the Lessor to the Lessee or any amendment of the obligations existing
      between the Lessee and the Lessor shall prejudice or affect the Lessor's
      rights in terms hereof, and if any action by the Lessor results in a
      novation of any debt or liability between the Lessor and the Lessee or if
      any transaction between the Lessee and Lessor is terminated in terms of
      any statute or law in force from time to time, and a new transaction
      concluded in place thereof, or occupancy of the premises continues, or the
      Lessee holds over after cancellation, then without limitation to the
      aforegoing, I/we undertake and agree to be similarly bound as Surety(ies)
      and Co- Principal Debtor(s) in favour of the Lessor for such novated debt
      or liability or such newly concluded transaction;

	 	 
	2. 	
      The Lessor shall be entitled, in writing, without
      prejudice to its rights and without detracting from my/our liability
      hereunder, to release any securities or other sureties given to it or to
      give time to or compound with or make any arrangements with the Lessee in
      regard to the fulfilment of any of the Lessee's obligations as the Lessor
      in its absolute discretion deems fit;

INITIAL HERE 

Page 33 of 36 

	3.	
      If there is provision in this document for
      signature by more than one person of this Suretyship and one or more of
      those persons do not sign the Suretyship, that fact shall not affect the
      liability of the person(s) who does/do sign this
  document;

	 	 
		
      This Suretyship shall establish a continuing
      covering liability on my/our part for whatever amount(s) and whatever
      other obligation(s) will be owing by the Lessee to the Lessor for the time
      being, notwithstanding any intermediate discharge or settlement of or
      fluctuations in the account and notwithstanding the death, insolvency
      (which term shall for all the intents and purposes of these presents
      include sequestration, surrender, winding up and judicial management,
      whether provisional or final) or legal incapacity of the Lessee or any
      other Surety(ies) for and/or co-principal debtor(s) with the
      Lessee,

	 	 
	4. 	
      This Suretyship shall be in addition to and
      without prejudice to any other Suretyship of securities now held or
      hereafter held by the Lessor from or on behalf of the
    Lessee;

	5.    	(a)    	The amount of my/our indebtedness
      hereunder and that of the Lessee to the Lessor at any time, shall be
      determined and proved by a certificate signed by the Lessor(or by one of the
        Lessor's officials whose appointment, qualification and/or
        authority need not be
      proved); 

	 	(b) 	
      A certificate in terms of sub-clause (a) hereof shall be
      binding on me/us, shall be prima facieof
      the amount of my/our indebtedness hereunder, and shall be valid as a
      liquid document against me/us in any competent court for the purpose of
      obtaining provisional sentence or judgement against me/us
      thereon;

	6. 	
      Should the Lessor cede its claim against the
      Lessee to any third party, then the Surety/Sureties hereby irrevocably
      consent to such cession, whereafter this Deed of Suretyship shall be
      deemed to have been given by me/us to such cessionary who shall be
      entitled to exercise all his rights in terms of this Deed of Suretyship as
      if such cessionary were the Lessor. The aforegoing shall in no way limit
      the operation of law in the event of a sale and transfer of the property
      to any third party/parties;

	 	 
	7. 	
      I/We renounce the benefits of
      excussion, non numeratae pecuniae, errore calculis,
      non causa debiti, division and cession of action, the
      full meaning and effect whereof I/we know and
  understand;

	 	 
	8. 	
      I/we choose domicilium
      citandi et executandi at the Premises let by the
      Lessor to the Lessee in terms of the Agreement of Lease to which this
      Suretyship is an annexure;

	 	 
	9. 	
      If a signatory hereof is a company, close
      corporation (or other juristic person) (hereinafter referred to as “the
      estate”), that entity does hereby warrant and represent to the Lessor that
      it has authority for the granting of this Deed of Suretyship in terms of
      its statutory documents and has a material interest in securing the
      indebtedness covered by this Suretyship, which is entered into for its
      direct or indirect benefit. The person signing this Suretyship on behalf
      of the Company shall be deemed by virtue of such signature to be party to
      the aforegoing warranty and representation in his personal capacity
      jointly and severally with the Company.

	 	 
	10. 	
      If the estate of the Lessee is provisionally or
      finally sequestrated or (if the Lessee is a Company or Closed Corporation
      or other juristic person) it is placed under provisional or final winding
      up, my/our liability hereunder shall not be affected in any
      way.

INITIAL HERE 

Page 34 of 36 

	11. 	
      This Suretyship constitutes the entire agreement
      between me/us and the Lessor, and no variation or consensual cancellation
      thereof shall be of any force or effect unless it is in writing and signed
      by both the Lessor and me/us.

	 	 
	12. 	
      I/we acknowledge that no representations whatever
      have been made to me/us in order to induce me/us to sign this
      Suretyship.

	 	 
	13. 	
      I/We acknowledge that the Lessor shall be
      entitled to conduct enquiries at credit bureaus and/or financial
      institutions from time to time.

	 	 
	14. 	
      Any costs incurred by the Lessor in enforcing the
      terms of this Suretyship against me/us will be borne by me/us on the scale
      as between attorney and own client including collection commission and
      tracing fees. I/we furthermore consent to the jurisdiction of the
      Magistrate's Court having jurisdiction over my/our person in respect of
      all legal steps, which the Lessor may take against me/us, notwithstanding
      that the amount claimed or cause of action would otherwise be beyond the
      jurisdiction of the Magistrate's Court.

	 	 
	15. 	
      The Lessor may during the currency of this Deed
      of Suretyship, obtain one or more further sureties. I/We hereby agree that
      such further suretyship shall in no way prejudice any rights that the
      Lessor may have against me/us.

	 	 
	16. 	
      CONSENT TO CREDIT
      VERIFICATION

	16.1. 	
      I/we irrevocably consent to the Lessor and / or
      his agents requesting any information available on any credit bureau
      regarding me/us stipulated herein from time to time.

	 	 
	16.2. 	
      This consent includes (but is not limited to)
      that the Lessor and/or its agents, as the case may
  be:

	16.2.1. 	
      perform a credit search on my/our credit profile
      with more than one registered credit bureau at any time during the
      currency of this Agreement.

	 	 
	16.2.2. 	
      should I/we fail to meet its commitments in terms
      of this Deed of Suretyship, the Lessor and/or its agents may record my/our
      non-performance to any credit bureau.

	 	 
	16.2.3. 	
      to request a report where the Lessor and/or its
      agents are monitoring my/our payment behaviour by researching my/our
      profile.

	 	 
	16.2.4. 	
      use any new information and data obtained from
      any registered credit bureau in respect of future applications to lease
      (if applicable).

	 	 
	16.2.5. 	
      may record the details in respect of my/our
      account with any registered credit bureau.

	 	 
	16.2.6. 	
      may record and transmit details of my/our
      performance in terms of this Deed of Suretyship and how the account is
      conducted by me/us in meeting my/our obligations in terms of the Deed of
      Suretyship.

	16.3. 	
      The Lessor will give me/us 20 (twenty) business
      days written notice prior to forwarding of the details as set out above to
      any registered credit bureau.

INITIAL HERE 

Page 35 of 36 

SIGNED at
________________________________________________________on _______________day of
_________________________ 20____

 

_____________________________________________________

SURETY (Full Signature)

	 	 	 
	AS WITNESS 	 	PRINT NAME (WITNESS) 

 

IF APPLICABLE, TO BE FILLED IN BY
SPOUSE: 

By my signature hereto, I  
____________________________________________

(ID number: _________________________________________) (spouse)
married in community of property to
_________________ hereby give my
consent in the presence of the undersigned witnesses to _____________________
binding himself/herself as surety to __________________for and on behalf of
__________________trading as __________________________ 

*See NOTE below, if applicable Surety's wife/husband
and two witnesses must sign below.

 

AS WITNESSES:

	1. 	____________________________________	 
	 	  	 
	 	  	 
	 	  	 
	2. 	____________________________________	____________________________________
	 		(FULL SIGNATURE)
      (Spouse)  

<STRIKE>If not applicable, please state
reason:              
___________________________________
(For example: married by
A.N.C. or unmarried etc.) 

NOTE: If the surety is
married in community of property his/her spouse must consent the
Suretyship in terms of Section 15 of the Matrimonial Property Act No. 88
of 1984. 

INITIAL HERE 

Page 36 of 36 

ANNEXURE E 

REINSTATEMENT OF LEASED PREMISES 

	1. 	
      The Lessee shall on cancellation, or prior to termination
      or expiry of this lease, at the Lessee’s cost and expense reinstate the
      Leased Premises in:

	1.1 	
      the same good order and condition, as at the Commencement
      Date; alternatively

	 	 
	1.2 	
      a basic condition consisting of a screed floor, white
      painted walls, standard ceiling; alternatively

	 	 
	1.3 	
      any combination of the conditions described in clauses
      1.1 and 1.2 as directed by the Lessor in writing;

	 	 
		
      in all instances, fair wear and tear excepted, and to
      make good and repair at the Lessee’s cost and expense any disrepair,
      damage or breakage, or at the Lessor’s written option, to reimburse the
      Lessor for the cost of so doing and/or the cost of replacing any broken or
      damaged articles.

	2. 	
      In addition to the above, the Lessee
  shall:

	2.1 	
      arrange for a skip to be provided for the building rubble
      which includes tiles, ceiling boards, any plumbing and building material.
      No waste bins that belong to the Building may be used to transport rubble.
      Any damage to the bins will be billed to the Lessee’s account.

	 	 
	2.2 	
      advise his contractors / sub-contractors that the Common
      Areas and facilities are used at the user’s own risk, and the Lessor shall
      not be liable for injury to any person or for any damage or loss, however
      caused.

	 	 
	2.3 	
      ensure that his contractors / sub-contractors do not
      obstruct to the entrances to parking areas, lifts, loading zones,
      driveways, passages or arcades in any way whatsoever.

	 	 
	2.4 	
      not do or permit or cause anything to be done which, in
      the reasonable opinion of the Lessor, constitutes a nuisance or may cause
      inconvenience to, or in any way disturb the peace of the Lessor or other
      lessees in the Property or which may detract from the general neat
      appearance of the Property or the Leased Premises.

	 	 
	2.5 	
      complete a take back inspection with a representative of
      the Lessor or its agent (including a handover of all keys, duplicate keys
      and panic buttons in good, working order).

	 	 
	2.6 	
      obtain at its own cost and provide the Lessor with a
      Certificate of Electrical Compliance and Occupancy Certificate upon
      demand.

	 	 
	2.7 	
      The Lessor shall notify the Lessee of any disrepair,
      damage or breakage, which require repairs within 30 days of the
      termination of this Agreement. Failing which the premises shall be deemed
      to have been left by the Lessee in the same good order and condition as on
      the commencement date and the Lessor shall have no further claim against
      the Lessee in the relation to any required
repairs.

INITIAL HEREKTOS 2013.03.31 EX-10.1

EXHIBIT 10.1

FOURTH AMENDMENT AGREEMENT
This FOURTH AMENDMENT AGREEMENT (this “Amendment”) is made as of the 27th day of February, 2013 among:
(a)    KRATOS DEFENSE & SECURITY SOLUTIONS, INC., a Delaware corporation (the “Borrower”);

(b)    the Lenders, as defined in the Credit Agreement, as hereinafter defined; and

(c)    KEYBANK NATIONAL ASSOCIATION, as the lead arranger, sole book runner and administrative agent for the Lenders under the Credit Agreement (the “Administrative Agent”).

WHEREAS, the Borrower, the Administrative Agent and the Lenders are parties to that certain Credit and Security Agreement, dated as of May 19, 2010, as amended and restated as of July 27, 2011, that provides, among other things, for loans and letters of credit aggregating One Hundred Ten Million Dollars ($110,000,000), all upon certain terms and conditions (as amended and as the same may from time to time be further amended, restated or otherwise modified, the “Credit Agreement”);

WHEREAS, the Borrower, the Administrative Agent and the Lenders desire to amend the Credit Agreement to modify certain provisions thereof and add certain provisions thereto; 

WHEREAS, each capitalized term used herein and defined in the Credit Agreement, but not otherwise defined herein, shall have the meaning given such term in the Credit Agreement; and

WHEREAS, unless otherwise specifically provided herein, the provisions of the Credit Agreement revised herein are amended effective as of the date of this Amendment;

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrower, the Administrative Agent and the Lenders agree as follows:

1.    Amendment to Definitions in the Credit Agreement.  Section 1.1 of the Credit Agreement is hereby amended to delete the definition of “Eligible Unbilled Receivable” therefrom and to insert in place thereof the following:

“Eligible Unbilled Receivable” means, for any date, an Account of a Borrowing Base Company that was not billed prior to the end of the immediately preceding month. 

2.    Amendment to Financial Statements, Collateral Reporting and Information Covenant Provisions.  Section 5.3 of the Credit Agreement is hereby amended to delete subsection (f) therefrom and to insert in place thereof the following:

(f)    Inventory Report.  The Borrower shall deliver to the Administrative Agent a summary of Inventory, in form and substance satisfactory to the Administrative Agent and signed by a Financial Officer, concurrently with the delivery of the Borrowing Base Certificate referenced in subsection (a) above, based upon period-end balances reconciled to the period-end balance sheet and the period-end Borrowing Base Certificate, and accompanied by an Inventory certification, in form and substance reasonably acceptable to the Administrative Agent and including a calculation of the Eligible Inventory of the Borrowing Base Companies (the calculation of Eligible Inventory reflecting the then most recent period-end balance).  The Borrower shall deliver, after the end of each Quarterly Reporting Period, to the Administrative Agent, Inventory records, in such detail as the Administrative Agent and the Lenders shall deem reasonably necessary to determine the level of Eligible Inventory.  The values shown on the Inventory reports shall be at the lower of cost or market value, determined in accordance with the usual cost accounting system of the Borrowing Base Companies.  The Borrower shall provide such other reports with respect to the Inventory of the Borrowing Base Companies as the Administrative Agent may reasonably request from time to time.  Notwithstanding anything above in this Section 5.3(f) to the contrary, unless otherwise required by the Administrative Agent in writing, the Borrower shall only be required to deliver Inventory reports with respect to Borrowing Base Companies whose Inventory is a component of the Borrowing Base.

3.    Closing Deliveries.  Concurrently with the execution of this Amendment, the Borrower shall:

(a)    cause each Guarantor of Payment to execute the attached Guarantor Acknowledgment and Agreement; and

(b)    pay all legal fees and expenses of the Administrative Agent in connection with this Amendment and any other Loan Documents. 

4.    Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that (a) the Borrower has the legal power and authority to execute and deliver this Amendment; (b) the officers executing this Amendment have been duly authorized to execute and deliver the same and bind the Borrower with respect to the provisions hereof; (c) the execution and delivery hereof by the Borrower and the performance and observance by the Borrower of the provisions hereof do not violate or conflict with the Organizational Documents of the Borrower or any law applicable to the Borrower or result in a breach of any provision of or constitute a default under any other agreement, instrument or document binding upon or enforceable against the Borrower; (d) no Default or Event of Default exists, nor will any occur immediately after the execution and delivery of this Amendment or by the performance or observance of any provision hereof; (e) each of the representations and warranties contained in the Loan Documents is true and correct in all material respects as of the date hereof as if made on the date hereof, except to the extent that any such representation or warranty expressly states that it relates to an earlier date (in which case such representation or warranty is true and correct in all material respects as of such earlier date); (f) the Borrower is not aware of any claim or offset against, or defense or counterclaim to, the Borrower’s obligations or liabilities under the Credit Agreement or any other Related Writing; and (g) this Amendment constitutes a valid and binding obligation of the Borrower in every respect, enforceable in accordance with its terms.

5.    Waiver and Release.  The Borrower, by signing below, hereby waives and releases the Administrative Agent, and each of the Lenders, and their respective directors, officers, employees, attorneys, affiliates and subsidiaries, from any and all claims, offsets, defenses and counterclaims of which the Borrower is aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.

6.     References to Credit Agreement and Ratification.  Each reference to the Credit Agreement that is made in the Credit Agreement or any other Related Writing shall hereafter be construed as a reference to the Credit Agreement as amended hereby.  Except as otherwise specifically provided herein, all terms and provisions of the Credit Agreement are confirmed and ratified and shall remain in full force and effect and be unaffected hereby. This Amendment is a Loan Document.

7.    Counterparts.  This Amendment may be executed in any number of counterparts, by different parties hereto in separate counterparts and by facsimile or other electronic signature, each of which, when so executed and delivered, shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement.

8.    Headings.  The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

9.    Severability.  Any provision of this Amendment that shall be prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

10.    Governing Law.  The rights and obligations of all parties hereto shall be governed by the laws of the State of New York, without regard to principles of conflicts of laws.

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11696178.8

JURY TRIAL WAIVER.  THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, TO THE EXTENT PERMITTED BY LAW, EACH HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the date first set forth above.

	
		
	 
	KRATOS DEFENSE & SECURITY SOLUTIONS, INC.

By:   
Name:   
Title:   

	 
	KEYBANK NATIONAL ASSOCIATION
   as the Administrative Agent and as a Lender

By:   
Name:   
Title:   

	
		
	 
	PNC BANK, NATIONAL ASSOCIATION

By:   
Name:   
Title:   

	
		
	 
	EAST WEST BANK

By:   
Name:   
Title:   

	
		
	 
	CATHAY BANK

By:   
Name:   
Title:   

	
		
	 
	BANK OF THE WEST

By:   
Name:   
Title:   

GUARANTOR ACKNOWLEDGMENT AND AGREEMENT

The undersigned consent and agree to and acknowledge the terms of the foregoing Fourth Amendment Agreement dated as of February 27, 2013.  The undersigned further agree that the obligations of the undersigned pursuant to the Guaranty of Payment executed by the undersigned are hereby ratified and shall remain in full force and effect and be unaffected hereby.

The undersigned hereby waive and release the Administrative Agent and the Lenders and their respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of any kind or nature, absolute and contingent, of which the undersigned are aware or should be aware, such waiver and release being with full knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.

JURY TRIAL WAIVER.  THE UNDERSIGNED, TO THE EXTENT PERMITTED BY LAW, HEREBY WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG THE BORROWER, THE ADMINISTRATIVE AGENT, THE LENDERS AND THE UNDERSIGNED, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH THIS AMENDMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED THERETO.

	
		
	KRATOS PUBLIC SAFETY & SECURITY SOLUTIONS, INC.
KPSS GOVERNMENT SOLUTIONS, INC. (F/K/A KRATOS MID-ATLANTIC, INC.)
KRATOS SOUTHEAST, INC.
KRATOS TEXAS, INC.
WFI NMC CORP.
KRATOS TECHNOLOGY & TRAINING SOLUTIONS, INC.
AI METRIX, INC.
POLEXIS, INC.
REALITY BASED IT SERVICES, LTD.
SHADOW I, INC.
SHADOW II, INC.
KRATOS INTEGRAL SYSTEMS INTERNATIONAL, INC. (F/K/A SHADOW III, INC.)
DIGITAL FUSION, INC.
DIGITAL FUSION SOLUTIONS, INC.
SUMMIT RESEARCH CORPORATION

By:   
      Deanna H. Lund
      Executive Vice President & Chief Financial Officer

	DEFENSE SYSTEMS, INCORPORATED
HAVERSTICK CONSULTING, INC.
HGS HOLDINGS, INC.
DTI ASSOCIATES, INC.
HAVERSTICK GOVERNMENT SOLUTIONS, INC.
ROCKET SUPPORT SERVICES, LLC
JMA ASSOCIATES, INC. (D/B/A TLA ASSOCIATES)
MADISON RESEARCH CORPORATION
GICHNER SYSTEMS GROUP, INC.
KRATOS UNMANNED SYSTEMS SOLUTIONS, INC. ( F/K/A GICHNER HOLDINGS, INC.)
GICHNER SYSTEMS INTERNATIONAL, INC.
CHARLESTON MARINE CONTAINERS INC.
DALLASTOWN REALTY I, LLC
DALLASTOWN REALTY II, LLC 
DEI SERVICES CORPORATION
SCT ACQUISITION, LLC
SCT REAL ESTATE, LLC

By:   
      Deanna H. Lund
      Executive Vice President & Chief Financial Officer

	KRATOS DEFENSE & ROCKET SUPPORT SERVICES, INC. (F/K/A KRATOS DEFENSE ENGINEERING SOLUTIONS, INC.)
KRATOS SOUTHWEST L.P.,
     by Kratos Texas, Inc., its general partner
GENERAL MICROWAVE CORPORATION 
     (D/B/A HERLEY NEW YORK)
GENERAL MICROWAVE ISRAEL CORPORATION
HERLEY INDUSTRIES, INC.
HERLEY-CTI, INC.
HERLEY - RSS, INC.
MICRO SYSTEMS, INC.
MSI ACQUISITION CORP.
STAPOR RESEARCH, INC.
KRATOS INTEGRAL HOLDINGS, LLC  
(F/K/A  IRIS ACQUISITION SUB LLC)
AVTEC SYSTEMS, INC.
CVG, INCORPORATED
LVDM, INC.
LUMISTAR, INC.
KRATOS NETWORKS, INC. (F/K/A NEWPOINT TECHNOLOGIES, INC.)
REAL TIME LOGIC, INC.
SAT CORPORATION
SECUREINFO CORPORATION
COMPOSITE ENGINEERING, INC.

By:   
      Deanna H. Lund
      Executive Vice President & Chief Financial Officer
	HENRY BROS. ELECTRONICS, INC., 
   a Delaware corporation
HENRY BROS. ELECTRONICS, INC., 
   a Colorado corporation
HENRY BROS. ELECTRONICS, INC., 
   a Virginia corporation 
HENRY BROS. ELECTRONICS, INC.,
   a New Jersey corporation
HENRY BROS. ELECTRONICS, INC., 
   a California corporation
DIVERSIFIED SECURITY SOLUTIONS, INC.
HENRY BROS. ELECTRONICS, LLC
NATIONAL SAFE OF CALIFORNIA, INC.
AIRORLITE COMMUNICATIONS, INC.

By:   
      Deanna H. Lund
      Executive Vice President & Chief Financial
      Officer

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