Document:

Leatt Corp: Exhibit 4.20 - Filed by newsfilecorp.com

    

    
        

        

        LEATT CORPORATION

        2011 AMENDED AND RESTATED EQUITY INCENTIVE PLAN

        NOTICE OF RESTRICTED STOCK GRANT

        Capitalized but otherwise undefined terms in this Notice of Restricted Stock Grant and the attached Restricted Stock Grant Agreement shall have the same defined meanings as in the Leatt Corporation Amended and Restated 2011 Equity Incentive Plan, as amended (the “Plan”).

        	
                    Grantee Name: 

                	Jeffrey Joseph Guzy	 	Address: 	
                    3130 19th Street, North Arlington, VA 22201, USA

                

        You have been granted Restricted Stock subject to the terms and conditions of the Plan and the attached Restricted Stock Grant Agreement, as follows:

        	
                    Date of Grant:

                	
                    December 29, 2020                                      

                
	 	 
	
                    Vesting Commencement Date:

                	
                    December 29, 2020                                      

                
	 	 
	
                    Total Number of Shares Granted:

                	
                    2,250                                                            

                
	 	 
	
                    Agreement Date:

                	
                    December 29, 2020                                      

                
	 	 
	
                    Vesting Schedule:

                	
                    Sixty percent (60%) of the Restricted Stock shall be fully vested on the Grant Date, another twenty percent (20%) shall vest on the first anniversary of the Grant Date, and the balance of the Restricted Stock shall vest on the second anniversary of the Grant Date; provided, however, that one hundred percent (100%) of Grantee’s nonvested Restricted Stock shall become fully vested upon a Change of Control.

                

        

    

    

     

    
    
        

        LEATT CORPORATION

        2011 AMENDED AND RESTATED EQUITY INCENTIVE PLAN

        RESTRICTED STOCK GRANT AGREEMENT

        This RESTRICTED STOCK GRANT AGREEMENT (“Agreement”), dated as of the Agreement Date specified on the Notice of Restricted Stock Grant is made by and between LEATT CORPORATION, a Nevada corporation (the “Company”), and the grantee named in the Notice of Restricted Stock Grant (the “Grantee,” which term as used herein shall be deemed to include any successor to Grantee by will or by the laws of descent and distribution, unless the context shall otherwise require).

        BACKGROUND

        Pursuant to the Company’s 2011 Amended and Restated Equity Incentive Plan, as amended (the “Plan”), the Company, acting through the Administrator, approved the issuance to Grantee, effective as of the date set forth above, of an award of the number of Restricted Stock as is set forth in the attached Notice of Restricted Stock Grant (which is expressly incorporated herein and made a part hereof, the “Notice of Restricted Stock Grant”) upon the terms and conditions hereinafter set forth.

        NOW, THEREFORE, in consideration of the mutual premises and undertakings hereinafter set forth, the parties hereto agree as follows:

        1. Grant of Restricted Stock. The Company hereby grants to Grantee, and Grantee hereby accepts the number of Restricted Stock set forth in the Notice of Restricted Stock Grant.

        2. Shareholder Rights.

        (a) Voting Rights. Until such time as all or any part of the Restricted Stock are forfeited to the Company under this Agreement, if ever, Grantee (or any successor in interest) shall have the rights of a Shareholder, including voting rights, with respect to the Restricted Stock subject, however, to the transfer or any other restrictions set forth in the Plan.

        (b) Dividends and Other Distributions. During the Period of Restriction, Participants holding Restricted Stock shall be entitled to all regular cash dividends or other distributions paid with respect to all Shares while they are so held. If any such dividends or distributions are paid in Shares, such Shares shall be subject to the same restrictions on transferability and forfeitability as the Restricted Stock with respect to which they were paid.

    

    

    
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        3. Vesting of Restricted Stock.

        (a) The Restricted Stock shall be restricted and subject to forfeiture until vested. The Restricted Stock which have vested and are no longer subject to forfeiture are sometimes referred to as “Vested Shares.” All Restricted Stock which have not become Vested Shares are hereinafter sometimes referred to as “Nonvested Shares.”

        (b) Except as otherwise provided in this section, Restricted Stock shall vest and become nonforfeitable in accordance with the vesting schedule contained in the Notice of Restricted Stock Grant, except that 100% of Grantee’s Nonvested Shares shall become fully vested upon a Change of Control.

        (c) Definitions. Terms used in this section shall have the following meanings:

        (i) “Cause” has the meaning ascribed to such term or words of similar import in Grantee’s written employment or service agreement with the Company or any subsidiary and, in the absence of such agreement or definition, means Grantee’s (i) conviction of, or plea of nolo contendere to, a felony or any other crime involving moral turpitude; (ii) fraud on or misappropriation of any funds or property of the Company or its subsidiaries, or any affiliate, customer or vendor; (iii) personal dishonesty, incompetence, willful misconduct, willful violation of any law, rule or regulation (other than minor traffic violations or similar offenses), or breach of fiduciary duty which involves personal profit; (iv) willful misconduct in connection with Grantee’s duties or willful failure to perform Grantee’s responsibilities in the best interests of the Company or its subsidiaries; (v) illegal use or distribution of drugs; (vi) violation of any rule, regulation, procedure or policy of the Company or its subsidiaries; or (vii) breach of any provision of any employment or service agreement, non-disclosure, non-competition, non-solicitation or other similar agreement executed by Grantee for the benefit of the Company or its subsidiaries, all as determined by the Board, which determination will be conclusive.

        (ii) “Retirement” means Grantee’s retirement from Company employ at age 65 as determined in accordance with the policies of the Company or its subsidiaries in good faith by the Board, which determination will be final and binding on all parties concerned.

        (d) Unvested Shares may not be sold, transferred, assigned, pledged, or otherwise disposed of, directly or indirectly, whether by operation of law or otherwise. The restrictions set forth in this Section 3(d) shall terminate upon a Change of Control.

        4. Forfeiture of Nonvested Shares. Except as provided herein, if Grantee's service with the Company ceases for any reason other than Grantee’s (a) death, (b) Disability, (c) Retirement, or (d) termination by the Company without cause, any Nonvested Shares shall be automatically forfeited to the Company.

        (a) Legend. Each certificate representing Restricted Stock granted pursuant to the Notice of Restricted Stock Grant may bear a legend substantially as follows:

    

    

    
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        “THE SALE OR OTHER TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE, WHETHER VOLUNTARY, INVOLUNTARY OR BY OPERATION OF LAW, IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AS SET FORTH IN THE LEATT CORPORATION AMENDED AND RESTATED 2011 EQUITY INCENTIVE PLAN AND IN A RESTRICTED STOCK GRANT AGREEMENT, A COPY OF WHICH MAY BE OBTAINED FROM LEATT CORPORATION.”

        (b) Escrow of Nonvested Shares. The Company shall have the right to retain the certificates representing Nonvested Shares in the Company’s possession until such time as all restrictions applicable to such Shares have been satisfied.

        (c) Removal of Restrictions. The Participant shall be entitled to have the legend removed from certificates representing Vested Shares.

        5. Recapitalizations, Exchanges, Mergers, Etc. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all shares of capital stock of the Company or successor of the Company which may be issued in respect of, in exchange for, or in substitution for the Restricted Stock by reason of any stock dividend, split, reverse split, combination, recapitalization, reclassification, merger, consolidation or otherwise which does not terminate this Agreement. Except as otherwise provided herein, this Agreement is not intended to confer rights upon any other person except the parties hereto any rights or remedies hereunder.

        6. Grantee Representations.

        Grantee represents to the Company the following:

        (a) Restrictions on Transfer. Grantee acknowledges that the Restricted Stock to be issued to Grantee must be held indefinitely unless subsequently registered and qualified under the Securities Act or unless an exemption from registration and qualification is otherwise available. In addition, Grantee understands that the certificate representing the Restricted Stock will be imprinted with a legend which prohibits the transfer of such Restricted Stock unless they are sold in a transaction in compliance with the Securities Act or are registered and qualified or such registration and qualification are not required in the opinion of counsel acceptable to the Company.

        (b) Relationship to the Company; Experience. Grantee either has a preexisting business or personal relationship with the Company or any of its officers, directors or controlling persons or, by reason of Grantee’s business or financial experience or the business or financial experience of Grantee’s personal representative(s), if any, who are unaffiliated with and who are not compensated by the Company or any affiliate or selling agent, directly or indirectly, has the capacity to protect Grantee’s own interests in connection with Grantee’s acquisition of the Restricted Stock to be issued to Grantee hereunder. Grantee and/or Grantee’s personal representative(s) have such knowledge and experience in financial, tax and business matters to enable Grantee and/or them to utilize the information made available to

    

    

    
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        Grantee and/or them in connection with the acquisition of the Restricted Stock to evaluate the merits and risks of the prospective investment and to make an informed investment decision with respect thereto.

        (c) Grantee’s Liquidity. In reaching the decision to invest in the Restricted Stock, Grantee has carefully evaluated Grantee’s financial resources and investment position and the risks associated with this investment, and Grantee acknowledges that Grantee is able to bear the economic risks of the investment. Grantee (i) has adequate means of providing for Grantee’s current needs and possible personal contingencies, (ii) has no need for liquidity in Grantee’s investment, (iii) is able to bear the substantial economic risks of an investment in the Restricted Stock for an indefinite period and (iv) at the present time, can afford a complete loss of such investment. Grantee’s commitment to investments which are not readily marketable is not disproportionate to Grantee’s net worth and Grantee’s investment in the Restricted Stock will not cause Grantee’s overall commitment to become excessive.

        (d) Access to Data. Grantee acknowledges that during the course of this transaction and before deciding to acquire the Restricted Stock, Grantee has been provided with financial and other written information about the Company. Grantee has been given the opportunity by the Company to obtain any information and ask questions concerning the Company, the Restricted Stock, and Grantee’s investment that Grantee felt necessary; and to the extent Grantee availed himself of that opportunity, Grantee has received satisfactory information and answers concerning the business and financial condition of the Company in response to all inquiries in respect thereof.

        (e) Risks. Grantee acknowledges and understands that (i) an investment in the Company constitutes a high risk, (ii) the Restricted Stock are highly speculative, and (iii) there can be no assurance as to what investment return, if any, there may be. Grantee is aware that the Company may issue additional securities in the future which could result in the dilution of Grantee’s ownership interest in the Company.

        (f) Valid Agreement. This Agreement when executed and delivered by Grantee shall constitute a valid and legally binding obligation of Grantee which is enforceable in accordance with its terms.

        (g) Residence. The address set forth on the Notice of Restricted Stock Grant is Grantee’s current address and accurately sets forth Grantee’s place of residence.

        (h) Tax Consequences. Grantee has reviewed with Grantee’s own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Grantee understands that Grantee (and not the Company) shall be responsible for Grantee’s own tax liability that may arise as a result of the transactions contemplated by this Agreement. Grantee understands that Section 83 of the Internal Revenue Code of 1986, as amended (the “Code”), taxes as ordinary income the difference between the Grant Date value of the Restricted Stock and the fair market value of the Restricted Stock as of the date any restrictions on the Restricted Stock lapse. Grantee understands that Grantee may elect to be taxed at the time the Restricted Stock is granted rather than when and as the restrictions lapse by filing an election under Section 83(b) of the Code with the Internal Revenue Service within thirty (30) days from the Grant Date. The form for making this election is attached as Exhibit A hereto. GRANTEE ACKNOWLEDGES THAT IT IS GRANTEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S TO FILE TIMELY ANY ELECTION UNDER SECTION 83(b), EVEN IF GRANTEE REQUESTS THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON GRANTEE’S BEHALF.

    

    

    
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        7. Tax Withholding. The Company has the power and the right to deduct or withhold, or require Grantee to remit to the Company, an amount sufficient to satisfy Federal, state and local taxes (including the Grantee’s FICA obligation) required by law to be withheld with respect to the grant and vesting of the Restricted Stock.

        8. No Employment Contract Created. The issuance of the Restricted Stock shall not be construed as granting to Grantee any right with respect to continuance of employment or any service with the Company or any of its subsidiaries. The right of the Company or any of its subsidiaries to terminate at will Grantee's employment or terminate Grantee’s service at any time (whether by dismissal, discharge or otherwise), with or without cause, is specifically reserved, subject to any other written employment or other agreement to which the Company and Grantee may be a party.

        9. Interpretation. This Agreement is being issued pursuant to the terms of the Plan, and shall in all respects be interpreted in accordance therewith. The Administrator shall interpret and construe this Agreement and the Plan, and any action, decision, interpretation or determination made in good faith by the Administrator shall be final and binding on the Company and Grantee.

        10. Notices. All notices or other communications which are required or permitted hereunder shall be in writing and sufficient if (a) personally delivered or sent by telecopy, (b) sent by nationally-recognized overnight courier or (c) sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: (i) if to the Grantee, to the address (or telecopy number) set forth on the Notice of Restricted Stock Grant; and (ii) if to the Company, to the attention of the Chief Financial Officer at the address set forth below: Leatt Corporation, 12 Kiepersol Crescent Atlas Gardens, Contermanskloof, Durbanville, 7550, Cape Town, Republic of South Africa or to such other address as the party to whom notice is to be given may have furnished to the other party in writing in accordance herewith. Any such communication shall be deemed to have been given (A) when delivered, if personally delivered, or when telecopied, if telecopied, (B) on the first Business Day (as hereinafter defined) after dispatch, if sent by nationally-recognized overnight courier and (C) on the fourth Business Day following the date on which the piece of mail containing the communication is posted, if sent by mail. As used herein, “Business Day” means a day that is not a Saturday, Sunday or a day on which banking institutions in the city to which the notice or communication is to be sent are not required to be open.

        11. Specific Performance. Grantee expressly agrees that the Company will be irreparably damaged if the provisions of this Agreement and the Plan are not specifically enforced. Upon a breach or threatened breach of the terms, covenants and/or conditions of this Agreement or the Plan by Grantee, the Company shall, in addition to all other remedies, be entitled to a temporary or permanent injunction, without showing any actual damage, and/or decree for specific performance, in accordance with the provisions hereof and thereof. The Administrator shall have the power to determine what constitutes a breach or threatened breach of this Agreement or the Plan. Any such determinations shall be final and conclusive and binding upon Grantee.

    

    

    
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        12. No Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.

        13. Grantee Undertaking. Grantee hereby agrees to take whatever additional actions and execute whatever additional documents the Company may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on Grantee pursuant to the express provisions of this Agreement.

        14. Modification of Rights. The rights of Grantee are subject to modification and termination in certain events as provided in this Agreement and the Plan.

        15. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada applicable to contracts made and to be wholly performed therein, without giving effect to its conflict of laws principles.

        16. Counterparts; Facsimile Execution. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. Facsimile execution and delivery of this Agreement is legal, valid and binding execution and delivery for all purposes.

        17. Entire Agreement. This Agreement (including the Notice of Restricted Stock Grant) and the Plan, constitute the entire agreement between the parties with respect to the subject matter hereof, and supersede all previously written or oral negotiations, commitments, representations and agreements with respect thereto.

        18. Severability. In the event one or more of the provisions of this Agreement should, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

        19. WAIVER OF JURY TRIAL. THE GRANTEE HEREBY EXPRESSLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

    

    

    
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        IN WITNESS WHEREOF, the parties hereto have executed this Restricted Share Grant Agreement as of the date first written above.

        	 	LEATT CORPORATION
	 	 	 
	 	By:	
	 	 	Sean Macdonald
	 	 	Chief Executive Officer
	 	 	 
	 	 	 
	 	GRANTEE:
	 	 
	 	
                    ______________________________

                    Jeffrey Joseph Guzy

                    Director

                

         

    

    

    
        

        SPOUSE'S CONSENT TO AGREEMENT

        (Required where Grantee resides in a community property state)

        I acknowledge that I have read the Agreement and the Plan and that I know and understand the contents of both. I am aware that my spouse has agreed therein to the imposition of certain forfeiture provisions and restrictions on transferability with respect to the Restricted Stock that are the subject of the Agreement, including with respect to my community interest therein, if any, on the occurrence of certain events described in the Agreement. I hereby consent to and approve of the provisions of the Agreement, and agree that I will abide by the Agreement and bequeath any interest in the Restricted Stock which represents a community interest of mine to my spouse or to a trust subject to my spouse's control or for my spouse's benefit or the benefit of our children if I predecease him.

        	Dated:   ______________________________	 	 
	 	 	Signature
	 	 	 
	 	 	 
	 	 	Print Name

         

    

    

    
        

        Exhibit A

        ELECTION UNDER SECTION 83(b)

        OF THE INTERNAL REVENUE CODE OF 1986

        The undersigned taxpayer hereby elects, pursuant to Sections 55 and 83(b) of the Internal Revenue Code of 1986, as amended, to include in taxpayer’s gross income or alternative minimum taxable income, as the case may be, for the current taxable year the amount of any compensation taxable to taxpayer in connection with taxpayer’s receipt of the property described below.

        1. The name, address, taxpayer identification number and taxable year of the undersigned are as follows:

         

        	 	TAXPAYER:	SPOUSE:
	NAME:	 	 
	ADDRESS:	 	 
	IDENTIFICATION NO.:	 	 
	TAXABLE YEAR:	 	 

        2. The property with respect to which the election is made is described as follows: ____ shares (the “Shares”) of the Common Stock of Leatt Corporation (the “Company”).

        3. The date on which the property was transferred is:___________________ ,______.

        4. The property is subject to the following restrictions:

        The Shares may not be transferred and are subject to forfeiture under the terms of an agreement between the taxpayer and the Company. These restrictions lapse upon the satisfaction of certain conditions contained in such agreement.

        5. The fair market value at the time of transfer, determined without regard to any restriction other than a restriction which by its terms will never lapse, of such property is: $_________________.

        6. The amount (if any) paid for such property is: $_________________.

        The undersigned has submitted a copy of this statement to the person for whom the services were performed in connection with the undersigned’s receipt of the above-described property. The transferee of such property is the person performing the services in connection with the transfer of said property.

        The undersigned understands that the foregoing election may not be revoked except with the consent of the Commissioner.

        	Dated: ______________________, _____	 
	 	Taxpayer
	              The undersigned spouse of taxpayer joins in this election.	 
	 
	Dated: ______________________, _____	 
	 	Spouse of TaxpayerLeatt Corp: Exhibit 10.7 - Filed by newsfilecorp.com

    

    
        

        LEASE AGREEMENT

        The undersigned Lessor wishes to lease the Leased Premises to the Lessee and the Lessee wishes to lease the Leased Premises from the Lessor on the terms and conditions set out herein.

        SCHEDULE

        1. Lessor

        	1.1	Full name:	Mundo Talio SL
	 	 	 
	1.2	Registration Number:	B63747208
	 	 	 
	1.3	Physical Address:	c/Pous 18, 08740 Sant Andreu de la Barca, Barcelona, Spain
	 	 	 
	1.4	Postal Address:	c/Pous 18, 08740 Sant Andreu de la Barca, Barcelona, Spain
	 	 	 
	1.5	E-mail:	info@talio.net

        2. Lessee

        	2.1	Full name:	Leatt Corporation
	 	 	 
	2.2	EIN Number:	20-281-9367
	 	 	 
	2.3	Physical Address:	12 Kiepersol Cres, Atlas Gardens, Contermanskloop Road, Durbanville, 7550
	 	 	 
	2.4	Postal Address:	Suite 109, Private Bag X3, Bloubergrant, 7442, Cape Town, South Africa
	 	 	 
	2.5	E-mail:	lara@leatt.com
	 	 	 
	3.	Commencement Date: 	1 September 2020
	 	 	 
	4.	Leased Premises: 	Calle Jaén, number 1 of -08740-, Sant Andreu de la Boat, Spain.

         

    

    

    
        

        5. Applicability of Terms and Conditions

        The Schedule and the Standard Terms and Conditions attached hereto shall form the Agreement between the Lessor and the Lessee.

        

        

    

    

    
        

        Index

        LEASE AGREEMENT

        	NO. CLAUSE HEADINGS	PAGE
	 	 
	1	INTERPRETATION	2
	 	 	 
	2	INTRODUCTION	4
	 	 	 
	3	THE LEASE	4
	 	 	 
	4	COMMENCEMENT AND DURATION	4
	 	 	 
	5	RENTAL	5
	 	 	 
	6	LESSEE’S RIGHTS AND OBLIGATIONS	5
	 	 	 
	7	THE LESSOR’S RIGHTS AND OBLIGATIONS	8
	 	 	 
	8	DAMAGE TO OR DESTRUCTION OF PREMISES	9
	 	 	 
	9	BREACH	11
	 	 	 
	10	DISPUTE RESOLUTION	12
	 	 	 
	11	NOTICES AND DOMICILIA	14
	 	 	 
	12	SEVERANCE	14
	 	 	 
	13	GENERAL	15
	 	 	 
	14	SIGNATURE	15

        1

        24 February 2021

    

    

    
        
            

        

        LEASE AGREEMENT

        1 INTERPRETATION

        1.1 In this Agreement, unless inconsistent with or otherwise indicated by the context –

        1.1.1 “the/this Agreement” means this Lease Agreement, comprising of the Schedule and the terms and conditions as set out in this document and the annexures hereto;

        1.1.2 “Business Day” means any day that is not a Saturday, Sunday or South African public holiday;

        1.1.3 “Commencement Date” means the date set out at paragraph 3 of the Schedule, notwithstanding the Signature Date;

        1.1.4 “Lessor” means the party set out in paragraph 1 of the Schedule;

        1.1.5 “Lessee” means the party set out in paragraph 2 of the Schedule;

        1.1.6 “Lease Period” means the period of this Agreement referred to in clause 4.1;

        1.1.7 “Leased Premises” means the premises set out in paragraph 4 of the Schedule;

        1.1.8 “the Parties” means the Lessor and the Lessee and “Party” means either one of them as the context may indicate;

        1.1.9 “Rental” means a monthly rental of €1256.86 (one thousand two hundred fifty-six Euros and eighty-six cents);

        1.1.10 “Schedule” means the schedule to which these standard terms and conditions are attached;

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        1.1.11 “the Signature Date” means the date on which this Agreement is signed by the Party signing last in time;

        1.1.12 words importing the singular shall include the plural and vice versa;

        1.1.13 words importing natural persons includes legal persons and partnerships and vice versa;

        1.1.14 words importing one gender includes the other genders;

        1.1.15 any reference to an enactment is to that enactment as at the Signature Date and as amended or re-enacted from time to time;

        1.1.16 where figures are referred to in numerals and in words, if there is any conflict between the two, the words shall prevail.

        1.2 The clause headings in this Agreement have been inserted for reference purposes only and shall not affect the interpretation of any provision of this Agreement.

        1.3 Words and expressions defined in any sub-clause shall, for the purpose of the clause of which the sub-clause forms part, bear the meaning assigned to such words and expressions in that sub-clause.

        1.4 If any provision in a definition is a substantive provision conferring rights or imposing obligations on any Party, effect shall be given to it as if it were a substantive clause in the body of the Agreement, notwithstanding that it is only contained in this interpretation clause.

        1.5 If any period is referred to in this Agreement by way of reference to a number of days, the days shall be reckoned exclusively of the first and inclusively of the last day unless the last day falls on a day which is not a Business Day, in which case the day shall be the next succeeding Business Day.

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        1.6 The rule of construction that the contract shall be interpreted against the Party responsible for the drafting or preparation of this Agreement, shall not apply.

        1.7 This Agreement shall be governed by and construed and interpreted in accordance with the law of the Republic of South Africa.

        1.8 Expressions defined in this Agreement shall bear the same meanings in any annexure hereto which does not contain its own definitions.

        2 INTRODUCTION

        The Parties record that –

        2.1 the Lessor is the owner of the Leased Premises;

        2.2 the Lessee wishes to lease the Leased Premises from the Lessor; and

        2.3 the Parties have reached agreement as to the terms and conditions of the letting of the Leased Premises, which terms and conditions are contained in this Agreement.

        3 THE LEASE

        The Lessor hereby lets to the Lessee, who hereby hires from the Lessor, the Leased Premises on the terms and subject to the conditions hereinafter set forth.

        4 COMMENCEMENT AND DURATION

        4.1 This Agreement shall come into operation on the Commencement Date and shall subsist for a period of 10 months (“Initial Period”), subject to clause 4.2, terminating on the earlier of the following days –

        4.1.1 the lapse of the Initial Period; or

        4

    

    

    
        
            

        

        4.1.2 if this Agreement is validly terminated or cancelled in accordance with its provisions.

        5 RENTAL

        5.1 The Lessee shall make payment of the Rental to the Lessor in advance on or before the first Business Day of each month, with the first Rental Payment being payable on or before 1 September 2020.

        6 LESSEE’S RIGHTS AND OBLIGATIONS

        6.1 Deposit

        6.1.1 The Lessee shall pay –

        6.1.1.1 €6000 (six thousand Euros) as a deposit in respect of the Rental; and

        6.1.1.2 €12.02 (twelve Euros and two cents) as a deposit in respect of water charge,

        on or before the Commencement Date, both of which are refundable on termination of this Agreement less any deductions in respect of damages to the premises, reasonable wear and tear excluded, and any other unpaid amounts that the Lessee may owe to the Lessor in terms of this Agreement. The said deposits shall be held by the Lessor in an interest- bearing account and shall be retained by the Lessor for the duration of this Agreement and for a period of 14 days after the termination hereof, whereupon it shall be refunded to the lessee together with the interest thereon.

        6.2 Electricity

        The Lessee shall –

        6.2.1 not alter, interfere with or overload the electrical, lighting or heating installations in the Leased Premises;

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        6.2.2 be liable for payment of the electricity consumed at the Leased Premises which shall be separately metered and billed to the Lessee by the Lessor, on a monthly basis; and

        6.2.3 notify the Lessor and the relevant authority should the electrical current to the Leased Premises cease or become defective or be interrupted.

        6.3 Water

        The Lessee shall –

        6.3.1 notify the relevant authority should the water supply to the Leased Premises cease or become defective or be interrupted; and

        6.3.2 be liable to the Lessor for payment of the amounts due in respect of the Lessee’s water usage at the Leased Premises, which amount will be billed to the Lessee on a monthly basis.

        6.4 Alarm System

        6.4.1 It is recorded that the Lessee has paid the Lessor for the installation of an alarm system.

        6.4.2 The Lessee shall pay the Lessor agreed monthly maintenance of the alarm, which amount will be billed to the Lessee on a monthly basis (“Alarm System”).

        6.5 Maintenance

        The Lessee –

        6.5.1 shall, upon the termination of this Agreement, deliver the Leased Premises to the Lessor in a clean condition and good state of repair, fair wear and tear excepted; and

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        6.5.2 shall keep and maintain the Leased Premises in a neat, clean, tidy and hygienic condition as no such service shall be provided by the Lessor.

        6.6 Alterations

        The Lessee –

        6.6.1 shall not make any alterations or additions of any nature whatsoever to the Leased Premises without the Lessor’s prior written consent, which consent shall not be unreasonably withheld, provided that the Lessee shall not at any time or under any circumstances have any claim whatsoever against the Lessor for improvements so effected to the Leased Premises; and

        6.6.2 if any alternations or additions are made to the Leased Premises with the Lessor’s prior written consent, then the Lessee shall, if so required by the Lessor, upon the termination of this Agreement reinstate the Leased Premises, to the same condition that it was in prior to such alterations or additions.

        6.7 Fixtures and Fittings 

         =The Lessee –

        6.7.1 may at any time with the prior written consent of the Lessor, which consent shall not be unreasonably withheld, install any fixtures, fittings and equipment in the Leased Premises for the purposes of carrying on the Lessee’s business; and

        6.7.2 may at any time and shall, prior to the termination of this Agreement, remove any fixtures or fittings installed in terms of clause 6.7.1, provided that the Lessee shall, at its own cost and expense, repair any damage caused by the installation and/or removal of such fixtures, fittings or equipment.

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        6.8 Insurance

        6.8.1 The Lessor has arranged insurance in respect of the Lessee’s stock at the premises (depending on stock levels) to the maximum of €200,000 (two hundred thousand Euros) and an additional Civil Risk Policy in respect of third-party liability to the value of €600,000 (six hundred thousand Euros).

        6.8.2 The Lessee shall make payment of the aforesaid insurance premium to the insurer annually in advance upon receipt of the invoice in respect thereof from the Lessor.

        6.9 Vacation of Premises

        The Lessee shall, on vacating the Leased Premises –

        6.9.1 afford the Lessor access to the Leased Premises for the purpose of conducting a full inspection; and

        6.9.2 deliver all keys to the Lessor or its agent.

        7 THE LESSOR’S RIGHTS AND OBLIGATIONS

        7.1 Access

        The Lessor may at any time –

        7.1.1 have reasonable access to the Leased Premises for the purposes of inspecting or repairing the Leased Premises or for any other purposes associated therewith;

        7.1.2 repair or add to the Leased Premises; and

        7.1.3 alter the Leased Premises when required to do so by any lawful Authority, provided that the Lessor shall exercise its rights in terms hereof with the least possible inconvenience to the Lessee.

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        7.2 Alarm

        The Lessor will be responsible for maintaining (or procuring maintenance services of) the Alarm System paid for on a monthly basis.

        7.3 Assignment

        Neither party shall be entitled to cede their rights or delegate their obligations as set out in this Agreement without the prior written consent of the other Party, which consent may not be unreasonably withheld.

        7.4 Electricity and Water

        The Lessor shall use its best endeavours to ensure that there is uninterrupted electricity and water supply to the Leased Premises, provided that the Lessor’s obligation herein is limited to the extent that an interruption to the electricity or water supply is caused for a reason outside of the Lessor’s control.

        7.5 Fit for Purpose

        The Lessor shall ensure that the Leased Premises shall at all times for the duration of this Agreement, ensure that the Leased Premises is fit for the purpose for which the Lessee is lettering it, being warehousing and storage space.

        8 DAMAGE TO OR DESTRUCTION OF PREMISES

        8.1 Destruction of the whole or portion of the Leased Premises

        8.1.1 Should any damage to or destruction of the whole or portion of the Leased Premises take place, the Lessee shall be entitled, within 30 days after such damage or destruction, to decide whether or not to terminate this Agreement and shall notify the Lessor of its decision in writing within such period. Should the Lessee not notify the Lessor of its decision within such period, it shall be deemed to have elected to terminate this Agreement.

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        8.1.2 Should the Lessee elect or be deemed to have elected to terminate this Agreement, the Lessee shall have no claim of any nature whatsoever against the Lessor as a result of such termination, but shall not be liable for the payment of Rental from the date of such damage or destruction.

        8.1.3 Should the Lessor elect not to terminate this Agreement -

        8.1.3.1 the Lessor shall reinstate the Leased Premises at its own cost within 3 months after its election not to terminate this Agreement (or such longer period as may be reasonable in the circumstances);

        8.1.3.2 the Lessee shall not be liable for the payment of Rental as long as it is deprived of beneficial occupation of the Leased Premises;

        8.1.3.3 the Lessee shall be given beneficial occupation from time to time on any part of the Leased Premises, the provisions of this Agreement shall mutatis mutandis apply to such occupation and

        8.1.3.4 the Lessee shall make payment of the Rental therefor on a pro rata basis; and

        8.1.3.5 the period of this Agreement shall, at the option of the Lessee, shall be extended by the period during which the Lessee is deprived of beneficial occupation of the whole of the Leased Premises.

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        9   BREACH

        9.1 Should –

        9.1.1 the Lessee fail to pay any amount due by the Lessee in terms of this Agreement on due date and remain in default for a period of not less than 7 days after receiving notification in writing from the Lessor to do so; or

        9.1.2 the Lessee commit any other material breach in terms of any terms of this Agreement and fail to remedy that breach within a period of 14 days after the receipt of written notice to that effect by the Lessor and complete the remedying of such breach within a reasonable time; or

        9.1.3 the Lessee repeatedly breach any of the material terms of this Agreement in such manner as to justify the Lessor in holding that the Lessee’s conduct is inconsistent with the intention or liability of the Lessee to carry out the terms of this Agreement; or

        9.1.4 the Lessee commit the same material breach in respect of which it has received written notice from the Lessor on more than two occasions in any period of 3 months,

        then and in any one of such events, the Lessor shall, without prejudice to its right to claim damages or to the Lessor’s right to eject the Lessee from the Leased Premises or to any other claim of any nature whatsoever that the Lessor may have against the Lessee as a result thereof –

        9.1.5 be entitled to cancel this Agreement; or

        9.1.6 in the case of a breach in terms of clauses 9.1.2, be entitled to remedy such breach and immediately recover the total cost incurred by the Lessor in so doing from the Lessee.

        9.2 Should the Lessor commit a breach of any of its obligations under this Agreement, and fail to remedy such breach within 14 days after receipt of

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        a written notice from the Lessee requiring the Lessor to do so, the Lessee shall have the right to claim specific performance of any of the Lessor’s obligations under this Agreement, or alternatively to immediately cancel this Agreement, without prejudice to any other remedy which the Lessor may have in law, including the right to claim damages.

        10 DISPUTE RESOLUTION

        10.1 Any Party may demand that a dispute be determined in terms of this clause 10 by written notice given to the other Parties in accordance with the Expedited Rules (“Rules”) of the Arbitration Foundation of Southern Africa (“AFSA”).

        10.2 This clause shall not prevent any Party from obtaining interim relief on an urgent basis from a court of competent jurisdiction, pending the decision of an arbitrator.

        10.3 The Parties hereby consent to the arbitration being dealt with on an urgent basis in terms of the Rules of AFSA should either Party, by written notice, require the arbitration to be held on an urgent basis. In such event either Party may apply to the AFSA Secretariat as required in terms of the said Rules to facilitate such urgent arbitration.

        10.4 The arbitration shall be held –

        10.5 at Cape Town or by way of electronic communication, should the Parties agree (or failing agreement, at the instance of the arbitrator);

        10.6 with only the legal and other representatives of the Parties to the dispute present thereat; and

        10.7 otherwise in terms of the Arbitration Act, No. 42 of 1965 (“Arbitration Act”), unless otherwise provided for herein.

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        10.8 The arbitrator shall be a practising advocate of the Cape Bar of at least ten years’ standing, appointed by agreement between the parties to the dispute, subject to clause 10.6.

        10.9 Should the Parties fail to agree on an arbitrator within 14 (fourteen) days after the giving of notice in terms of clause 10.1, the arbitrator shall be appointed by the Chairperson of the Cape Bar Council (or by AFSA if the Cape Bar Council no longer exists), at the request of either Party to the dispute.

        10.10 The Parties hereby consent to the jurisdiction of the High Court of South Africa in respect of the proceedings referred to in clause 10.8.

        10.11 The decision of the arbitrator shall be final and binding on the Parties to the dispute and may be made an order of the court referred to in clause 10.7, at the instance of any of the parties to the dispute.

        10.12 The Parties agree to keep the arbitration including the subject matter of the arbitration and the evidence heard during the arbitration confidential and not to disclose it to anyone except for purposes of obtaining an order as contemplated herein.

        10.13 It is recorded that it is the intention of the Parties, that any dispute referred to arbitration in terms of clause 10.1 shall be resolved strictly in accordance with the provisions of this clause 10. The Parties accordingly agree and undertake as follows -

        10.14 that it shall not make any application to Court as contemplated in terms of section 3(2) of the Arbitration Act;

        10.15 that it shall not make any application as contemplated in terms of section 20(1) of the Arbitration Act; and

        10.16 the periods set out in section 23 of the Arbitration Act shall not be applicable to any arbitration proceedings arising out of this Agreement.

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        10.17

        11 NOTICES AND DOMICILIA

        11.1 Each of the Parties choose as domicilia citandi et executandi their respective addresses set out in the Schedule for the purposes of the giving of any notice, the serving of any process and for any other purpose arising out of or in connection with this Agreement.

        11.2 Each of the Parties shall be entitled from time to time to vary its domicilia citandi et executandi to any other address within the Republic of South Africa which is not a post office box or post restante.

        11.3 Any notice given in terms of this Agreement shall be in writing and shall -

        11.3.1 if transmitted by electronic mail message be deemed to have been received by the addressee on the expiration of 24 (twenty four) hours after transmission;

        unless the contrary is proved.

        11.4 Notwithstanding anything to the contrary contained or implied in this Agreement, a written notice or communication actually received by one of the Parties from the other including by way of electronic mail message shall be adequate written notice or communication to such Party.

        12 SEVERANCE

        Each of the provisions of this Agreement is separate and severable and enforceable accordingly. If any such term or condition is or becomes unenforceable for any reason whatsoever, that term or condition is severable from and shall not affect the validity of any other term or condition contained in this Agreement.

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        13 GENERAL

        13.1 The expiration, cancellation or other termination of this Agreement shall not affect those provisions of this Agreement which expressly provide that they will operate after such expiration, cancellation or other termination or which of necessity must continue to endure after such expiration, cancellation or other termination, notwithstanding that the relevant clause may not expressly provide for such continuation.

        13.2 This Agreement constitutes the entire agreement between the Parties as to the subject matter hereof and save as may be expressly set out herein, no agreements, representations or warranties between the Parties regarding the subject matter hereof other than those set out herein are binding on the Parties.

        13.3 No indulgence, leniency or extension of time which any Party may give or allow to the other Party in respect of the performance of any obligation hereunder, shall in any way prejudice the Party giving or allowing the indulgence, leniency or extension or preclude such Party from exercising any of its rights and enforcing the obligations of the other Party in terms of this Agreement.

        13.4 No addition to, alteration, cancellation, variation or novation of this Agreement and no waiver of any right arising from this Agreement or its breach or termination shall be of any force or effect unless reduced to writing and signed by all the Parties or their duly authorised representatives.

        14 SIGNATURE

        14.1 This Agreement is signed by the Parties on the dates and at the places indicated opposite their respective names.

        14.2 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall be taken together and deemed to be one instrument.

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        14.3 The persons signing this Agreement in a representative capacity warrant their authority to do so.

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