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					                                                                                  Annexure A 1

                        BUILDING CONTRACT
                             ENTERED BY AND BETWEEN:


                      CANNISTRARO INVESTMENTS (PTY) LIMITED

                            (hereinafter referred to as the “Contractor”)

                                               AND




                            (hereinafter referred to as the “Employer”)

at


WHEREAS the Employer requires a house to be erected on the premises mentioned hereunder;

AND WHEREAS the Contractor renders their professional services, the parties hereby agrees as
follows:

1.     UNDERTAKING TO BUILD

       For the contract price as contained in paragraph 3, the Contractor undertakes to complete the
       building in accordance with the building plans and specifics according to general approved
       building conditions in terms of the rules of the “National Home Builders Association”.

2.     PREMISES

       The premises will be situated at

3.     CONTRACT PRICE

3.1    The contract price will be R _______________________ (in words
       _______________________________________________ Rand) payable as follows:

3.2    This agreement is subject to the suspensive condition that the Employer (or the estate agent
       for and on behalf of the Employer) obtain an approved building loan by not later than
       ______________ by a registered bank of no less than R ____________________ (in words
       ___________________________________________ Rand), a bond to be registered over
       the property with such interest rates and conditions as stipulated by the Bank who grants the
       bond and on condition that the Employer’s spouse (or any of the directors and/or
                                                 2


      shareholders and/or members, which ever the case might be) bind themselves as surety and
      co-principal debtor jointly and severely with the Employer for the fulfillment of all the
      Employer liabilities in terms of the loan.

3.3   An irrevocable guarantee’s acceptable to the contractor for an amount of
       R _____________________ (in words ________________________________________
      Rand ) shall be paid in cash free of exchange against registration of transfer. The employer
      shall deliver such guarantee to the contractor’s conveyancers within 7 days after clause 3.2
      realised.

4.    SUSPENSIVE CONDITIONS

      This Agreement is subject to the stand being registered in the name of the Employer.

5.    TIME PERIOD

5.1   The estimate time of completion will be _________________ in accordance with the
      building plan instructions. A certificate of occupancy will be handed after the full purchase
      price is settled. If a temporary occupation certificate is issued to accommodate the employer,
      it is without prejudice.

5.2   Should the building construction of any particular house not be completed, for any reason,
      within the time period mentioned in 5.1, the Contractor shall not be held liable for any
      interest or any other damages suffered by any of the Employer, any purchaser or occupier of
      the particular house.

6.    PLANS AND SPESIFICATIONS

6.1   The Employer agrees to the plans as drafted by the Contractors Architect and initialed by him
      for identification purposes, forms part of the Building Contract, marked Annexure “B”.

6.2   The Contractor is compelled to complete the work according to the plans.


7.    VARIATION OF PLANS AND SPESIFICATION

7.1   No variation shall be applicable unless confirmed in writing and signed by all the parties.
7.2   A Management Fee of 20% will be raised on all variations.

8.    RIGHTS AND OBLIGATIONS OF CONTRACTOR

8.1   The contractor will supply all building material and implements on its own expense.

8.2   The contractor has the right to instruct sub-contractors to do the whole or complete part of
      the work, the contractor being responsible for the proper fulfillment of such work and the
      payment of such sub-contractors fees for work done.
                                                     3


8.3      Notwithstanding anything to the contrary contained herein, the Contractor shall have a right
         of retention over the property and any construction and improvements on the property until
         such time the contract price has been paid in full.

8.4      The contractor shall not be bounded by any representation and/or undertaking made by the
         Employer or sub-contractor to do any work, or to supply building material for free or the
         delivery thereof at a reduced price, unless such suggestions and/or undertaking has been put
         in writing and signed by the Contractor.

9.       RETENTION

         No retention by the employer.
         A Construction guarantee shall be issued, 3 months for patent defaults and 1 year for latent
         defaults.

10.      EXEMPTION

         The Contractor accepts no liability for any loss incurred by the Employer due to any cracks
         in the construction, caused by vis major or any other reason for which the Contractor had no
         control over.

11.      INSURANCE

         The Contractor is liable to take out sufficient insurance coverage for the construction period
         only for the erection of the building and as the erection progresses.

12.      BREACH OF CONTRACT

12.1     Should the Employer fail to comply with any of the conditions or stipulations of this contract
         within the specific time period contained in the building agreement and not respond on a
         written notice within 10 (TEN) working days, the Contractor has the right to:

12.1.1      cancel the agreement by a written notice to the Employer and to claim for damages
            incurred by the Contractor; or

12.1.2      claim immediate payment of the contract price and demand immediate compliance of all
            the terms and conditions of this contract.

12.2     Should any legal actions arise from any of the stipulations in terms of this contract, the
         parties agree that costs will be payable on an attorney and client scale.


13.      JURISDICTION

         The Contractor and Employer hereby consent to the jurisdiction of the Magistrates Court
         having jurisdiction over its person in respect of all proceedings connected with this
         Agreement, the breach thereof or relating to the property or any part thereof.
                                                  4


14.    AMENDMENT

       No amendment of this Agreement will be binding unless put in writing and signed by both
       parties.

15.    LAPSE OF CONDITIONS BY EMPLOYER

       Notwithstanding any specific or silent condition of this agreement, any latitude or extension
       of time which may be allowed by any of the parties, or the acceptance of any amount less
       than the amount due in terms of this Agreement, or the failure to comply with any rights in
       terms of this Agreement timeously, will not prejudice the rights of the other party in terms of
       this agreement and shall not be construed as a notation of this Agreement or any part thereof.

16.    HEADINGS

       All headings in the contract is merely for purposes of convenience and must not be taken into
       account with the interpretation of this contract.

17.    DOMICILIUM

17.1   Employer:




17.2   Contractor:


18.    SPESIFICATIONS, PRIME COST ITEMS AND PROVISIONAL SUMS OF
       COMPLETION

       The specifications, prime cost items and provisional sums for completion are attached hereto
       and marked Annexure “A”, initialed for identification purposes.


19.    CIVIL ENGINEER PROFESSIONAL INDEMNITY

       In the event of failure by the contractor to execute the work in accordance with the
       construction contract, resulting in damages being suffered by the employer, the employer
       undertakes to exhaust all of its remedies against the contractor, being exercising any
       contractual rights it may have against the consultant.




SIGNED AT                            THIS                   DAY OF                             2005.
                       5



AS WITNESSES:



1.
                           EMPLOYER


2.



SIGNED AT       THIS       DAY OF       2005.


AS WITNESSES:



1.
                           CONTRACTOR


2.

				
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