Agricultural Rental Agreement Template

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					1.11    "Termination date"- the date in accordance with the Schedule on                2.5.    The Hirer shall at its cost (if applicable) :-
        which the renting will terminate by effluxion of time.                         2.5.1   arrange and procure with the Supplier to take delivery of the goods
                                                                                               and install the goods forthwith upon signature hereof, but in any
1.12    “Prime Rate” - a rate of interest per annum which is equal to the                      event within 30 days from the date of signature hereof, and shall
        published minimum lending overdraft rate of interest per annum,                        cause the installation of the goods to be carried out by the Supplier
        compounded monthly in arrears, charged by the Standard Bank of                         or such person as the Supplier may, with the approval of Smart,
        South Africa Limited. In the case of a dispute as to the rate so                       appoint to carry out the installation in accordance with such
        payable, any manager or assistant manager of the said bank, whose                      specifications and/or directions which the Supplier and/or Smart may
        decision shall be final and binding on the Parties, shall certify the                  prescribe for that purpose; and in the event of the Hirer failing to
        rate.                                                                                  comply with its obligations under this clause, and should Smart so
                                                                                               elect, the Hirer shall for all purposes under this agreement be
1.13    The singular shall include the plural, the masculine the other                         deemed to have taken and/or accepted delivery and installation of
        genders, and lower case letters, capital letters and vice versa, and                   the goods and Smart shall be entitled, at its election, to enforce all
        headings are for guidance only.                                                        its rights under this agreement;

2.      RISK, DELIVERY AND ACCEPTANCE                                                  2.5.2   ensure that the premises, site or location at the address where the
2.1     All risk of loss and damage in and to the goods shall from the date of                 goods are located or installed are suitable in every respect for the
        delivery to the Hirer pass to and vest with the Hirer.                                 installation and accommodation of the goods.

2.2     The Hirer acknowledges that the basis of this agreement is that: -             3.      PAYMENT AND SCHEDULE
                                                                                       3.1.    The Hirer shall:
2.2.1   the goods described in the Schedule have been purchased by Smart               3.1.1   for the period specified in the Schedule, pay the rentals specified in
        at the Hirer's request and solely for the purpose of hiring the goods                  such Schedule; and after the expiry of that period - (for so long as
        to the Hirer in terms of this agreement;                                               the agreement continues) pay a rental equal to the last rental paid in
                                                                                               terms of such Schedule.
2.2.2   the Goods and the Supplier have been selected by the Hirer, who                        The Hirer shall pay the rentals and other amounts owing (if any)
        has also negotiated the specifications, warranties and guarantees                      strictly on due date and without any deduction of whatever nature
        required by him directly with the Supplier; and                                        and for any reason whatsoever;

2.2.3   the Hirer shall at his own cost procure and take delivery of the goods         3.1.2   if Smart requires it, complete and deliver to Smart such instruments
        from Smart or the Supplier, as the case may be, and delivery by                        of payment (including automatic debit order) as Smart may stipulate,
        Smart or the Supplier to the Hirer shall, without detracting from the                  and agrees that such instruments of payment shall in no way be
        provisions of clause 2.5.1, be deemed to constitute good and proper                    deemed to be a novation of any of Smart’s rights hereunder.
        delivery of the Goods to the Hirer irrespective of whether or not the
        Goods shall have been installed by Smart or the Supplier, the                  3.2     Should the Hirer fail to pay on due date any rentals, damages or
        Parties recording that any obligation to install the goods falls outside               other amount falling due or payable to Smart or expended by Smart
        the ambit of this Agreement.                                                           on behalf of the Hirer under this agreement (from whatever cause)
                                                                                               such overdue amount shall bear interest at the Penalty Rate,
2.3.    Signature by the Hirer of a Schedule and Delivery Receipt shall be                     calculated from the due date of each rental or the date of accrual of
        deemed to be an acknowledgement that: -                                                Smart’s rights to claim in the case of damages to the date of receipt
                                                                                               of payment, without prejudice to such other rights as may accrue to
2.3.1   the Hirer has inspected and approved the goods and that same are                       Smart consequent upon such failure.
        in every way satisfactory to the Hirer;
                                                                                       3.3     The Hirer shall in addition to the rentals reflected in the Schedule/s
2.3.2   no warranty or guarantee by or on behalf of Smart as to the                            pay Value Added Tax thereon (at the rate applicable from time to
        condition, state or quality of the goods or their fitness or suitability               time) or any other tax or fiscal charge which may be imposed by
        for any purpose has been or is given, or implied, and the Hirer is not                 legislation.
        guaranteed against eviction; and
                                                                                       3.4     This agreement shall operate as a separate and distinct agreement
2.3.3   the Hirer shall have no claim against Smart, nor shall the Hirer be                    in respect of each Schedule hereto provided that a breach of any
        entitled to cancel this agreement, or withhold or cease payment, if                    Schedule shall be deemed to be a breach of all Schedules and this
        after having signed the Schedule and Delivery Receipt it                               agreement.
        subsequently transpires that the goods or any part of them, have not
        been installed, or are for any reason unacceptable to the Hirer, or            3.5     On the signing of any Schedule in terms hereof, the Hirer shall be
        have become lost or stolen or damaged or unserviceable for                             deemed to have hired the goods described in such Schedule on the
        whatever reason.                                                                       terms and conditions herein contained as well as any additional
                                                                                               conditions in any Schedule set forth.
2.4     The Hirer shall have no authority to order or purchase the goods on            3.6     Smart shall be entitled, at its discretion, to appropriate or allocate
        Smart’s behalf, nor to act as the agent of Smart for any purpose                       any payments from or on behalf of the Hirer to any indebtedness of
        whatsoever except that it shall be deemed to have accepted delivery                    the Hirer to Smart, whether in terms of this agreement or from
        on behalf of Smart when the goods are delivered by the Supplier to                     whatsoever other cause arising, and the Hirer hereby waives and
        the Hirer.                                                                             abandons the right to name the debt to which any payment made to
                                                                                               Smart shall be so allocated.

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3.7       The rental charges stated in this agreement are calculated after                 5.2.   If the goods or any part thereof are lost, stolen or damaged,
          taking into consideration: current supplier list prices; all bona fide                  irrespective of the cause, the Hirer shall inform the Insurer and
          importation costs including but not limited to freight, clearing, rigging,              Smart immediately of such happening.
          handling, packaging, insurance, transport and sales/customs and ad
          valorum duty; rates of exchange; the then current prevailing                     5.3    The Hirer absolves Smart from any liability if all costs in respect of
          short/medium term money market rates; cost of conforming to                             the repair and/or replacement of the goods are not fully or at all
          statutory obligations and/or regulations; any unrecovered VAT; and                      recovered from the insurer.
          all other similar costs hereinafter referred to as the Rental Costing
          Factors. If by reason of any change (whether it be an increase or                5.4.   The Hirer assumes responsibility for all loss and damage to the
          decrease) in the Rental Costing Factors, or by reason of the                            goods, notwithstanding the existence of an insurance policy as
          introduction of, or change of any law or Government Regulations, or                     contemplated in this clause 5, including, without limitation, any
          monetary requirements of any authority, or compliance by Smart                          excess that may be or become payable under any insurance policy.
          with a request from any central bank or fiscal monetary or other
          authority affecting the deposit taking institutions generally, and               5.5    The Hirer undertakes that he will acquaint himself with the
          without derogating from the generality of aforegoing, by reason of                      conditions of the aforementioned insurance policy and that he will
          any increase in the levy on financial services in terms of section 64                   refrain from performing any act or omission which may cause the
          (A) of the Income Tax Act 1962 (as amended) and as applicable to                        policy to lapse or which is contrary to the terms of the insurance
          deposit taking or similar institutions, there shall be an increase or                   policy.
          decrease in the cost to Smart of funding the transactions recorded
          herein, then Smart shall be entitled to recover from the Hirer such              6.     THE HIRER'S RESPONSIBILITIES
          amounts as will indemnify Smart against such increased or                               The Hirer shall:
          decreased costs of financing such transactions, on demand.
                                                                                           6.1    not move the goods from the site or location of their installation
4.        OWNERSHIP                                                                               without the prior written consent of Smart, which consent shall not
4.1.      The equipment shall remain the property of Smart and nothing in                         be unreasonably withheld.     All costs incurred in connection with
          this agreement shall be construed as conferring on the Hirer any                        such move shall be borne by the Hirer;
          right or interest in the equipment other than as a user thereof. The
          Hirer has no intention or desire to acquire ownership of the                     6.2    at all times, keep the goods in his possession and under his control
          equipment, but is interested only in the right of use and possession                    and not remove them beyond the borders of the Republic of South
          thereof.                                                                                Africa, and shall only use the goods for the purpose and in the
                                                                                                  manner for which they were designed and are normally used;
5.        INSURANCE
5.1.      The Hirer, unless otherwise agreed to by the parties in writing, shall           6.3    not make any material alteration or modification to the goods without
          insure the goods under a standard comprehensive insurance policy,                       Smart’s written consent and shall allow Smart or its agents
          including Sasria cover, covering all risk of loss and damage for the                    reasonable opportunity to inspect the goods; and when Smart has
          replacement value thereof. The Hirer is hereby given notice of its                      given its consent to any material alteration or modification as
          right of free choice in connection with its insurance obligations under                 aforesaid, any part or accessory, fixture or fittings added the goods
          this clause 5 in terms of section 43 of the Short Term Insurance Act,                   by the Hirer, shall become the property of Smart without
          53 of 1998. The Hirer represents and warrants that it has read,                         compensation to the Hirer;
          understood and is fully acquainted with the aforesaid provision. By
          signing this agreement, the Hirer acknowledges that it has been                  6.4    not permit the operation of the goods by any person other than by
          given prior written notice of its entitlement to the freedom of choice                  the Hirer personally and/or competent, properly trained and qualified
          referred to in the said Act, it exercised that freedom of choice, and it                persons in the Hirer's direct employ or under the Hirer's direct
          was no subject to any coercion or inducement as to the manner in                        supervision;
          which it exercised that freedom of choice.
                                                                                           6.5    keep the goods in good working order and condition and will ensure
5.1.1     In the event of :                                                                       that the goods are properly maintained as per the tender;   the Hirer failing to procure insurance in terms of 5.1 above for a
          period less than the whole period of this agreement, or                          6.6    keep the goods free from the claim of third parties and from
                                                                                                  attachment, shall not alienate or transfer them, encumber them   the Hirer fails to deliver to Smart proof of insurance taken out in                     either in part or as a whole or allow any lien to arise in respect
          terms of 5.1 above,                                                                     thereof, and should the Hirer allow the goods to become subject to
                                                                                                  any lien or attachment of any nature and Smart pays the amount
          then Smart, by virtue of the signature of the Hirer to this agreement,                  due for the release thereof, then such amount shall constitute a
          shall be irrevocably authorised and entitled, at the sole cost of the                   liquid debt owing to Smart by the Hirer and shall payable on
          Hirer, to take out insurance for so much of the period of this                          demand;
          Agreement as is not covered (it shall be assumed that there is no
          cover should the Hirer fail to give Smart proof in terms of 5.1 above)           6.7    not allow the goods to accede or permit them to be affixed to any
          on behalf of the Hirer with such insurer and upon such terms and                        premises or object or thing in such manner or with the intention that
          conditions as Smart may deem fit. In such event, the Hirer shall do                     the goods shall accede thereto, and the Hirer hereby waives and
          such things and sign all such documents as may be required by                           undertakes to procure and furnish Smart with written waiver of any
          Smart to give effect thereto.                                                           right of accession by any other persons as Smart may from time to

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      time direct and agrees that the goods shall at all times remain                                    conditions and/or obligations (all of which are agreed to be
      movable;                                                                                           material) of this agreement or of any other agreement; or

6.8   advise Smart of the name and address of the landlord (and any                            -         commit any act of insolvency, or being a natural person,
      subsequent landlord) where the goods are installed. Smart shall be                                 assign, surrender or attempt to assign or surrender his
      entitled to notify such persons in writing of its rights in the goods and                          estate, or being a partnership, be dissolved, or being a
      shall be allowed to inspect the goods at all reasonable times;                                     private company or close corporation, sustain a change of
                                                                                                         shareholding or membership; or
6.9   if the goods are lost, stolen, damaged or destroyed thereafter,
      whether by an insured risk or any other cause, immediately notify                        -         suffer any default judgement against him to remain
      Smart and if applicable, the insurer; and subject to clause 5 of this                              unsatisfied for 7 days or if the said judgement is not
      agreement the Hirer shall forthwith cause the goods to be replaced                                 rescinded be refused rescission within 14 days of any
      and/or repaired to the satisfaction of Smart, failing which Smart may                              default judgement; or
      at its option take possession of the goods (unless lost, stolen, or
      otherwise irrecoverable) and have them repaired and /or replaced to                      -         be sequestrated or placed under judicial management or
      both Smart and the insurer’s satisfaction. The Hirer shall be                                      be wound up, provisionally or finally, or abandon the
      responsible for and shall reimburse Smart for all the costs of repair                              goods; or
      or replacement if these costs are not recovered in full or at all from
      the insurer, and shall furthermore have not claim against Smart if all                   -         compromise with any of its creditors or endeavour or
      the costs of repair or replacement are not recovered in full or at al                              attempt to do so; or
      from the insurer.
                                                                                               -         have     made   any    incorrect   or   untrue     statement   or
7     DURATION                                                                                           representation in connection with this agreement or his
7.1   The hiring of the equipment shall commence on the commencement                                     financial affairs or any particulars thereof; or
      date and shall continue for a period of 36 months and thereafter
      indefinitely until such time as either party gives 90 (ninety) days                      -         do or suffer to be done anything, which might prejudice
      written notice to the other party of its intention to terminate the                                Smart’s rights under this agreement or which might cause
      hiring. No such notice shall be given before the expiry of the initial                             Smart to suffer any loss or damage; or
      period set out in the Schedule.
                                                                                               -         allow the goods to be seized under any legal process
7.2   On termination of the Agreement prior to expiry of the initial period                              issued against the Hirer, or
      the Hirer shall return the equipment together with all applicable
      documents to such address of Smart as Smart may advise, at the                           -         apply for assistance in terms of the Agricultural Credit Act,
      Hirer's cost and expense.                                                                          1966 (as amended);

7.3   Upon the return of the Goods in accordance with the terms hereof                         then, upon the occurrence of any one or more of these
      Smart may dispose of the Goods at such place and time on such                            events, and subject to the provisions of any legislation which may be
      terms and conditions as Smart may determine including the sale of                        applicable to this transaction, Smart shall be entitled, but not
      such Goods by the Hirer on Smart’s behalf.                                               obliged, in its sole and absolute election and without prejudice to
                                                                                               any rights it may have at law including the right to claim damages, to
8.1   Subject to 7.2 above, upon the termination of this Agreement for
      whatever reason the Hirer shall at its cost and risk forthwith allow
                                                                                      9. 1.1             claim immediate settlement of all amounts payable in terms
      Smart to recover the equipment from the Hirer. The Hirer shall
                                                                                                         of this Agreement, whether or not such amounts are then
      ensure that the goods are in good working order and condition, fair
      wear and tear excepted, together with all documents and service
      cards in the Hirer's possession relating to the equipment and the
      insurance thereof. For this purpose, the Hirer shall do all such things         9.1.2              immediately terminate this Agreement, take possession of
      as may be reasonably necessary to enable Smart’s authorised                                        the Goods, recover from the Hirer payment of all such
      agent or representative to uplift and collect the equipment.                                       amounts as are in arrears at the date of cancellation, retain
                                                                                                         all monies already paid by the Hirer and claim, as agreed,
                                                                                                         pre-estimated liquidated damages, all outstanding rentals
8.2   Nothing contained herein shall be construed as implying that Smart
                                                                                                         which would have been due until expiry of the agreement
      is liable to the Hirer in any manner in respect of any failure to
                                                                                                         by effluxion of time less the value of the goods, and all
      recover possession of the equipment or in delay in recovering
                                                                                                         legal costs, including legal costs on the attorney-and-client
      possession or in disposal thereof or any failure in any other respect.

9.    BREACH
                                                                                      9.2      In the event of termination of this agreement in terms of this clause 9
9.1   Should the Hirer:
                                                                                               the Hirer shall be obliged, at his own risk and expense, to
                                                                                               immediately return the goods to Smart at an address to be
      -          default in the punctual payment of any rental or any
                                                                                               nominated by Smart.
               other amount due in terms of this Agreement; or

                                                                                      9.3      Whenever it is necessary in terms of this agreement to determine
      -        fail to observe and perform any other of the terms,
                                                                                               the value of the goods, such value shall, at the expense of the Hirer,
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         be determined by an independent appraiser appointed by Smart,                         expenses in affecting such compliance or otherwise in protecting its
         whose valuation shall be final and binding on the Hirer.                              title to the goods shall be paid by the Hirer to Smart on demand.

10.1     The amount of the Hirer's indebtedness to Smart, the fact that such           14.     WAIVER AND ENTIRE CONTRACT
         indebtedness is due and payable, the Prime Rate at any given time,            14.1    Failure or neglect by Smart to enforce at any time any of the
         and variations in the said rate and the date or dates from which such                 provisions hereof shall not be construed as a waiver of Smart’s
         variations are effective, shall be determined and proved by a                         rights hereunder nor shall such failure or neglect in any way affect
         certificate under the signature of any manager of Smart (it not being                 the validity of the whole or any part of this agreement nor prejudice
         necessary to prove the appointment or status of any such manager).                    Smart’s rights to take subsequent action.

10.2     The certificate referred to in 10.1 shall :-                                  14.2    This agreement constitutes the entire agreement between the
                                                                                               parties hereto.   No agreement at variance with the terms and
10.2.1   be binding on the Hirer,                                                              conditions of this agreement, or any consensual cancellation
                                                                                               thereof, shall be of any force or effect unless in writing and signed
10.2.2   be prima facie proof of the amount due, owing and payable by the                      by the parties hereto.
         Hirer to Smart and the facts stated therein;
                                                                                       14.3    No relaxation or extension of time or indulgence granted by Smart to
10.2.3   be deemed to be a liquid document for the purpose of obtaining                        the Hirer shall be deemed to affect, prejudice or abrogate or be a
         provisional sentence and/or any other judgement against the hirer                     waiver of Smart’s rights hereunder; nor shall any such relaxation,
         and                                                                                   giving of time, indulgence or judgement taken be deemed to be a
                                                                                               novation of any of the terms and conditions of this agreement.
10.2.4   constitute prima facie proof to enable Smart to discharge any onus,
         which may be cast upon it in law.                                             15.     COSTS
                                                                                       15.1    All stamp duties payable in respect of this agreement or any
11.      CESSION AND DELEGATION                                                                suretyship or securities given in respect hereof shall be paid by the
11.1     The Hirer shall not cede any of his rights nor delegate any of his                    Hirer either on demand or by addition to the overall debt.
         obligations hereunder without the prior written consent of Smart.
                                                                                       15.2    All costs and disbursements including legal costs on the attorney
11.2     Smart shall be entitled to cede and transfer to any third party at its                own client scale incurred by Smart in recovering possession of the
         absolute discretion all or any of its rights under this Agreement                     goods, or in tracing the Hirer and /or locating the goods an/or in
         including its rights of ownership in the goods, either absolutely or as               disposing of the goods, collecting or endeavouring to collect all or
         collateral security. This clause shall be irrevocably deemed to                       any amount payable by the Hirer to Smart hereunder, or otherwise,
         constitute formal notice of such cession by Smart to the Hirer. All                   and all collection commissions, storage charges, costs of valuation
         rights in this agreement recorded in favour of Smart shall on cession                 of the goods, costs of sale, including such costs which in the entire
         pass to the benefit of the cessionary, who shall then be capable of                   discretion of Smart are necessary to restore the goods to a saleable
         enforcing such rights against the Hirer whom then shall:-                             condition, selling commission, dismantling and removal charges and
                                                                                               all other fees and charges of a like nature shall be for the account of
11.2.1   hold the goods on behalf of and in accordance with the instructions                   the Hirer and shall be payable to Smart as and when incurred.
         and directions of the cessionary; and
                                                                                       16.     LAW TO APPLY
11.2.2   if so required by the cessionary make all payments direct to such                     This agreement shall in all respects be governed and construed in
         cessionary.                                                                           accordance with the laws of the Republic of South Africa as
                                                                                               constituted on the day the agreement is entered into, and all
12.      JURISDICTION                                                                          disputes, actions and other matters in connection therewith shall be
12.1     Smart shall be entitled at its option to institute any legal proceeding               determined in accordance with such laws.
         which might arise out of or in connection with this agreement in any
         Magistrate's Court having jurisdiction in respect of the person of the        17.     DOMICILIUM
         Hirer in terms of section 28 of the Magistrate's Court Act No. 32 of          17.1    For all purposes of and in connection with this agreement, the
         1944, in the Republic of South Africa, notwithstanding that the claim                 parties hereby choose as their domicilium citandi et executandi, their
         or the value of the matter in dispute might otherwise exceed the                      respective addresses, which shall not be a private bag or post office
         jurisdiction of such Court in respect of the causes of action.                        box number.

12.2     Notwithstanding the aforegoing, Smart shall at its option be entitled         17.2.   Any notice of any change in such address shall be given in writing
         to institute all or any proceedings against the Hirer connected with                  by the party concerned and either delivered by hand or sent by pre-
         this agreement in any High Court having jurisdiction.                                 paid registered mail to the other party, upon which, the address so
                                                                                               notified, shall serve as the new domicilium citandi et executandi as
13.      Smart’S INTERVENTION TO PROTECT ITS RIGHTS                                            aforesaid. All notices, demands or communications intended for
         If the Hirer fails to comply with any of the provisions of this                       either party pursuant to this agreement shall be made at and
         agreement, Smart shall have the right, but not the obligation, to                     delivered to such party's domicilium for the time being, it being
         effect such compliance on behalf of the Hirer.          All costs and                 agreed that any such notice, demand or communication delivered by
                                                                                               hand shall be deemed to be received on the actual date of delivery

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        and if sent by post shall be deemed to be received five days after             failure/dysfunction of the goods attributable to the goods or any
        the date of posting.                                                           component thereof not being Year 2000 compliant/compatible. This
                                                                                       clause shall in no way detract from SMART’s rights and/or the Hirer’s
                                                                                       obligations in terms of this agreement.

        The Hirer acknowledges that at the time of signing, this agreement
        and the Schedule were fully completed and that the particulars set
        forth therein are true and correct.

 19.1   Without derogating from the generality of anything contained in this
        Agreement and subject to the approval of any cessionary the Hirer
        shall have the right, the details of which are expressly recorded
        herein and where applicable, in the Transaction Schedule, to
        upgrade any item or items of the goods at any time (unless the
        contrary is expressly recorded in the Transaction Schedule).

 19.2   The Hirer and Smart agree that the following conditions shall apply
        to the Hirer exercising the upgrade option:

             the Hirer shall give Smart at least thirty (30) days prior written
              notice of any intention to upgrade ; and

             the Hirer shall at the time of giving such notice have complied
              with all the terms and conditions of this Agreement and shall
              continue to do so; and

             the Hirer shall sign all documentation necessary to give force
              and effect to such upgrade of the goods; and

             the Hirer shall accept all amendments, when necessary to any
              rental payment (s) stated in the Transaction Schedule due and
              payable to Smart as are then occasioned by the Hirer
              exercising the upgrade option ; and

             the transaction to which the Goods which will be upgraded
              relate, will be terminated and a new transaction in respect of
              the upgrade goods will be entered into for a pre-determined
              period; and

             the Goods so selected by the Hirer pursuant to this Agreement
              and in particular this clause, is/are then available for rent by
              the Hirer ; and

             in the case of the Goods not being available for renting to the
              Hirer on expiration of the Hirer’s notice to upgrade due to
              delivery delays or any other reason whatsoever the Hirer will
              then revise the expiration of such notice to upgrade to coincide
              with the actual delivery date then applicable to such item/s of

         Should any of these conditions not be fulfilled by the Hirer for any
         reason whatsoever, then upgrade option shall be null and void
         abinitio, and be of no force and effect whatsoever.

 20.    The Hirer acknowledges that Smart shall not be liable for the costs of
        any necessary repairs and/or modifications to the goods in rendering
        same to be Year 2000 compliant, and the Hirer shall not hold Smart
        liable for and indemnifies Smart against any loss sustained by Smart
        and/or   any    third   party    respectively,   arising    from    any

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