Common use of THE OBLIGATIONS OF THE OPERATING COMPANY Clause in Contracts

THE OBLIGATIONS OF THE OPERATING COMPANY. 5.1 Subject to the Owner’s right to use the Owner’s Villa and the Owner’s Parking Bay/s in terms of this Agreement, the Owner hereby authorizes the Operating Company to place the Owner's Villa and the Owner’s Parking Bay in the Villa Rental Business. The Operating Company undertakes to place the Owner’s Villa and the Owner’s Parking Bay in the Rental Business and to endeavor to use the Owner’s Villa as often as possible in the conduct of the Hotel Business during the term of this Agreement accordingly. 5.2 The Operating Company shall throughout the duration of this Agreement have the right, in its sole discretion, to set the rates payable by Guests for using and occupying the Participating Villas and the Parking Bay’s (including the Owner’s Villa and the Owner’s Parking Bay/s), provided such rates are reasonably comparable to those of similar South African hotels. 5.3 For the duration of this Agreement the Operating Company is entrusted with the control and management of the Hotel Business, the Participating Villas, the Parking Bay’s and the Owner’s Villa and the Owner’s Parking Bay and will be responsible, inter alia, for: - 5.3.1 the creation of a Villa Rental Business by way of the use of the Participating Villas for the purposes of carrying on of the Hotel Business and the control, management and administration of the Rental Business so created; 5.3.2 the maintenance of the interior of the Participating Villas as in the normal course of business, expenses to be approved by the Villa owner and will be for the cost of the Villa owner; 5.3.3 ensuring the continued good working order of facilities in the Villas such as, by way of illustration, television sets, fridges and microwave ovens, where applicable, expenses to be approved by the Villa owner and will be for the cost of the Villa owner; 5.3.4 the maintenance through damage, loss or fair wear and tear, of all furniture, fixtures, fittings, equipment and movables in the Participating Villas, expenses to be approved by the Villa owner and will be for the cost of the Villa owner; 5.3.5 the reasonable control of all Guests; 5.3.6 the employment and control of all staff members engaged in the conduct and operation of the Hotel Business, including the cleaning of the Owner’s Villa at an agreed upon daily cost and the Owner’s Parking Bay; 5.3.7 ensuring that the Participating Villas are supplied with appropriate Guest supplies (including without limitation cleaning supplies) at an agreed upon daily cost, and that a daily cleaning service is provided for the Participating Villas when occupied; 5.3.8 undertaking an adequate and on-going marketing campaign with the aim of ensuring reasonable levels of occupancy of the Participating Villas and to report to Owners on a (no less than) quarterly basis in respect of marketing; 5.4 increasing the annual occupancy rate, and improving the out of season occupancy rate, of the Hotel and all villas within the rental scheme for maximum benefit of all participating owners with a target of 10% growth in annual occupancies and revenue; and 5.5 allow a representative of the Owner to have access at all reasonable times to the reservation system. 5.6 The Operating Company shall ensure that the hotel retains a minimum of a four star rating with the Tourism Grading Council. 5.7 The Operating Company shall provide a monthly report to owners reflecting occupancy rates, monthly revenues and marketing initiatives when they render the statements of income to each owner as per paragraph 7 below. 5.8 The Operating Company warrants that it shall at all times maintain the appropriate business licences and shall comply with relevant legislation for the running of a hotel.

THE OBLIGATIONS OF THE OPERATING COMPANY. 5.1 Subject to the Owner’s right to use the Owner’s Villa and the Owner’s Parking Bay/s in terms of this Agreement, the Owner hereby authorizes the Operating Company to place the Owner's Villa and the Owner’s Parking Bay in the Villa Rental Business. The Operating Company undertakes to place the Owner’s Villa and the Owner’s Parking Bay in the Rental Business and to endeavor to use the Owner’s Villa as often as possible in the conduct of the Hotel Business during the term of this Agreement accordingly. 5.2 The Operating Company shall throughout the duration of this Agreement have the right, in its sole discretion, to set the rates payable by Guests for using and occupying the Participating Villas and the Parking Bay’s (including the Owner’s Villa and the Owner’s Parking Bay/s), provided such rates are reasonably comparable to those of similar South African hotels. 5.3 For the duration of this Agreement the Operating Company is entrusted with the control and management of the Hotel Business, the Participating Villas, the Parking Bay’s and the Owner’s Villa and the Owner’s Parking Bay and will be responsible, inter alia, for: - 5.3.1 the creation of a Villa Rental Business by way of the use of the Participating Villas for the purposes of carrying on of the Hotel Business and the control, management and administration of the Rental Business so created; 5.3.2 the maintenance of the interior of the Participating Villas as in the normal course of business, expenses to be approved by the Villa owner and will be for the cost of the Villa owner; 5.3.3 ensuring the continued good working order of facilities in the Villas such as, by way of illustration, television sets, fridges and microwave ovens, where applicable, expenses to be approved by the Villa owner and will be for the cost of the Villa owner; 5.3.4 the maintenance through damage, loss or fair wear and tear, of all furniture, fixtures, fittings, equipment and movables in the Participating Villas, expenses to be approved by the Villa owner and will be for the cost of the Villa owner; 5.3.5 the reasonable control of all Guests; 5.3.6 the employment and control of all staff members engaged in the conduct and operation of the Hotel Business, including the cleaning of the Owner’s Villa at an agreed upon daily cost and the Owner’s Parking Bay; 5.3.7 ensuring that the Participating Villas are supplied with appropriate Guest supplies (including without limitation cleaning supplies) at an agreed upon daily cost), and that a daily cleaning service is provided for the Participating Villas when occupied; 5.3.8 undertaking an adequate and on-going marketing campaign with the aim of ensuring reasonable levels of occupancy of the Participating Villas and to report to Owners on a (no less than) quarterly basis in respect of marketing; 5.4 increasing the annual occupancy rate, and improving the out of season occupancy rate, of the Hotel and all villas within the rental scheme for maximum benefit of all participating owners with a target of 10% growth in annual occupancies and revenue; and 5.5 allow a representative of the Owner to have access at all reasonable times to the reservation system. 5.6 The Operating Company shall ensure that the hotel retains a minimum of a four star rating with the Tourism Grading Council. 5.7 The Operating Company shall provide a monthly report to owners reflecting occupancy rates, monthly revenues and marketing initiatives when they render the statements of income to each owner as per paragraph 7 below. 5.8 The Operating Company warrants that it shall at all times maintain the appropriate business licences and shall comply with relevant legislation for the running of a hotel.